At this low rate of 10,000 new apartments annually, it would take 400 years for the 4.3 million apartments in Hungary to be renewed. Therefore the current buildings would have to be maintained for a further 200-300 years, which is highly unlikely.

There were more apartments built in Hungary even during the year of the global economic crisis of 1933 (17,874), than in the years of 2011 and 2012. Only in 1949 did the annual number go below 15,000 and in the middle of the Second World War (1943) there were 27,000 units built in the country. Though there are serious fluctuations, the average number of units built in Hungary annually in the last 90 years was 43,000.

What does this mean for apartment owners? The value of well-located refurbished or new apartments in decent buildings and neighborhoods will rise more rapidly, as the stock is not replenished and demand is rising.

What does this mean for developers? The time is coming when a massive construction boom will sweep through the country.

Hungarians Avoid Loans

74% of Slovaks, 72% of Czechs would apply for a mortgage when purchasing property; while this number is only 42% in Hungary, overtaking only the Romanians, according to a recent survey by Erste Bank in the region. Source: HVG. Hungarian households have been badly burned with Swiss franc loans where in many cases monthly payments have doubled over the past 2-3 years. Challenge or opportunity for banks?

By Andras Patkai, Entrepreneur, Founder and CEO of CE Invest Group, and expert blogger on real estate and property issues in Budapest and Bratislava.

This opinion does not necessarily represent the views of this portal, your opinion is welcome too via info@xpatloop.com