Analysts See Stagnation On Hungarian Housing Market
- 21 Jan 2021 11:53 AM
- Hungary Around the Clock
Real estate market insiders do not expect prices to climb further on the housing market as a result of the government’s massive subsidy program for home purchases and renovations.
There are opposing forces on the market, such as higher demand and the pandemic, but they are expected to cancel each other out, resulting in unchanging prices, said Ákos Balla head of real estate brokerage Balla Ingatlan.
Balla expects prices to retreat in downtown Budapest, as investors and foreigners have disappeared from the housing market and short-term rentals have ceased.
Demand for homes in the countryside, where new investments and jobs are being created, could pick up, he said, naming Debrecen as a prime example.
Many feared that rising demand for homes could boost prices further, but that is not the case, said László Balogh, the chief economic analyst at Ingatlan.com.
There is a rebalancing with new supply of homes coming to the market and “we are seeing prices fall before our eyes”, he added.
There is also a wide divergence in prices due to the rise in remote work, he remarked. Demand for inner city homes may ease, leading to prices edging lower, while the prices of homes with balconies or single-family houses are expected to be higher.
MTI Photo: Csaba Jászai
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