Glut Of Unsold Homes Declines In Budapest
- 17 Feb 2012 8:06 AM
"The number of unsold homes in Budapest fell to 3,100 in January from a peak of 3,800 in 2009, according to OTP mortgage subsidiary OTP Jelzálogbank. This year home builders expect to break ground on 2,000 new units, after 2,500 homes were built last year.
Some 3,000 residential properties were sold in Budapest in 2011, but developers are struggling to find buyers in the midst of the market slump.
The average housing construction project includes residential compounds with 15 flats, compared with 30-40 in the pre-crisis period, OTP Jelzálogbank said.
Even if the EU approves the government’s home subsidy programme, sales are unlikely to rebound, as credit is tight and insufficient, buyers have no reserves to tap and many have depleted their resources after the early repayment of mortgage loans."
Source: Hungary Around the Clock
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