BARNES Hungary

Supply grows and bargaining power of buyers continues to increase


Tuesday 24 March 2020

Picture Supply grows and bargaining power of buyers continues to increase

The market effects of the coronavirus epidemic have been reported by, in which László Balogh, a leading financial expert, explains that online advertising is becoming more valuable as personal encounters become less frequent, and buyers are expected to rely more on real estate agents.

Significant price reductions are not expected for the overall market, but occasional purchases may become much more frequent than in previous years. In addition, as a result of the emergency, buyers' bargaining power continues to increase, as sellers can now rely on 10-15 percent less buyers than before. On the demand side, on the other hand, many postpone their home purchase, and now real estate tourists with less serious intentions of buying may disappear.

There has been a noticeable decline in tourism due to the coronavirus epidemic, which could bring a more significant change in the sublease market in the next period. The decline in demand for rental properties issued for short-term in recent years has affected apartment hotel owners, but there is no panic selling yet. Conversely, the decline in the number of tourists may lead to a greater expansion in the supply of longer-term rentals.

Reference: Forbes

The BARNES Newsletter

To stay up to date on luxury real estate news in Hungary and internationally, subscribe to our newsletter.