Uncertainty ensues in the Hungarian real estate market

When a market is in a golden age, it is hard to imagine that it will end one day, and we will have to be more careful with our investments again. But the market’s rise is never linear. More and more people have begun to worry about prices starting to lower on a fast rate. Porfolio.hu, a Hungarian economy magazine asked nine real estate professionals to try to guess what 2020 holds for the Hungarian market. They are Ákos Balla (Balla Ingatlan), László Balogh (Inatlan.com), Károly Benedikt (Duna House), Zsombor Incze (Takarék), Péter Pálfi (MRICS), Zoltán Sápi (Eltinga), Gábor Soóki-Tóth (Otthon Centrum), Tünde Tancsics (Budapesti Lakáspiaci Riport) and Dávid Valkó (OTP).

According to a third of them, the price of apartments in Budapest will stagnate. Two thirds of them think it will grow by no more than 10%. No one expects a rise above 10%. Regarding detached houses, more than half of them expect the price to stagnate, 40% of them to rise. 80% of the professionals say that the cost of newly built houses will rise. This is because the VAT has been increased to 27% in January.

The demand, however will stagnate, says the majority of the real estate marketers. They do not think the transaction number will go anywhere near as last year’s. Regarding the fees of apartments for lease, the market will stabilize in its current state. The prices might follow inflation and the change of income.

Reference: Portfolio.hu