Residential Property Market To Increase 3-7% In Hungary
- 17 Dec 2019 8:37 AM
- Budapest Business Journal
Real estate holdings group Duna House expects a drop in turnover but a 3-7% overall increase in the residential property market next year, with a sales forecast of 130,000-150,000 in 2020, says gazdasagportal.hu.
In addition to the general rise in prices, the company expects property prices to fall in several regions next year, leading to longer sales times and to stagnation in mortgage lending.
Duna House estimates that, while economic fundamentals and macroeconomic expectations for 2020 provide a positive outlook for the real estate and mortgage market, several processes that are not yet fully visible could affect the next year.
One of the most important of these is the VAT increase in the newly built real estate market, which will come into effect in January, and is expected to result in fewer announced new investments in 2020. The main driver of price increases will thus be the VAT change in this sector, which may be further strengthened by the narrowing supply.
At the same time, it could be advantageous for home-seekers that in the second half of this year, the supply of second-hand homes has continued to expand, allowing them more to choose from and to strengthen their bargaining position, gazdasag.hu writes.
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