Home prices in the capital now average HUF 128.2m, slightly down from a quarter earlier, Peter Szego of Duna House said.

Demand for newly built homes in Budapest remains active, but the market is set to stabilise as supply is also increasing gradually, it said.

Around 2,220 new homes were sold in Budapest in the third quarter, down 6pc from the previous quarter, but still well above the average of recent years, Duna House said. In the past one year, 9,611 newly built homes were sold, the highest figure in the past decade, it added.

Home rental rates rise 6.5pc in September

Home rental rates in Hungary rose 6.5pc year-on-year in September, data compiled by the Central Statistics Office (KSH) from listings site Ingatlan.com show.

Rental rates in the capital increased 6.6pc.

In a month-on-month comparison, home rental rates were down 1.1pc nationwide and edged down 0.2pc in Budapest.

There are over 17,600 rental listings on ingatlan.com at present.

Huge interest towards Home Start credit - state secretary

Data from September shows the Home Start subsidised credit scheme for first-time home buyers is off to a super start, Miklos Panyi, a state secretary at the Prime Minister's Office, said after a meeting of the House and Real Estate Market Advisory Board (LITT), a body of real estate professionals and policy makers established to make recommendations on the housing and commercial real estate market, on Monday.

There is huge interest towards the programme, and it started smoothly, Panyi said. Around 15,000 loan applications have been submitted, and many thousands are being prepared.

Based on the contracts, over HUF 400bn appeared on the credit market in September with applications evenly distributed nationwide, based on the banks' feedback. Some 80pc of applicants are younger than 40 with the average age being 34, he added.

Panyi noted that according to a rental market report, the decline in apartment rental prices has begun, with prices decreasing by one percent nationwide from August to September, which has not been seen in five years.

The state secretary said changes are being planned to further ease conditions for the Home Start credit scheme. These include a proposal allowing buyers of units in new residential buildings to take out loans even before their homes were completed and one for buyouts by siblings with shared ownership in inherited homes.

 

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

*********************************************************************************************

You're very welcome to comment, discuss and enjoy more stories via our Facebook page: 

Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary

You can subscribe to our newsletter here: XpatLoop.com/Newsletters

Showcase Your Business to Expats in the Loop:

As an independent portal we’re grateful to all commercial supporters who help keep you in the loop with fresh insights and inspiration. Do you want your business to reach tens of thousands of potential high-value expat customers? If so please contact us here.