During the same period, overall home prices inched up over 1pc.

Ingatlan.com chief analyst Laszlo Balogh said supply of homes eligible for the 3pc fixed-rate Home Start scheme was on the rise, causing prices to fall.

Home Start price thresholds for eligibility -- HUF 100m for homes in apartment blocks, HUF 150m for detached homes and HUF 1.5m/square metre -- were set to prevent home price inflation.

Ingatlan.com's listings show Home Start-eligible homes are priced at a median HUF 1.2m/sqm in the capital's District III, HUF 1.1m/sqm in District IV and HUF 1.3m/sqm in the leafy District II and upmarket District V.

In the university towns of Szeged and Debrecen, the prices of homes eligible for the scheme are a little over HUF 1.2m/sqm and HUF 0.9m/sqm, respectively.

Commenting on the ingatlan.com analysis in a post on Facebook, state secretary Miklos Panyi said the facts had again "refuted" warnings by the opposition that Home Start would result in 20pc-40pc price inflation on the residential property market. He added that overpricing would exclude sellers from the programme.

Panyi said developers had flagged the launch of projects with more than 10,000 homes eligible for the Home Start credit. Two of those developments, with over 4,000 homes, are in the process of being designated a priority for the national economy, he added.

 

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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