Budapest’s rising property prices might come to a halt
According to the latest, quarterly survey of GKI Economic Research Co., property prices might stop rising after a long time, and there won’t be a significant increase in the next 12 months. However, the office market is still going strong.
GKI Economic Research Co. conducted its research involving 110 real estate businesses, 1060 companies and 1000 people representing Hungarian citizens. The expectations of the companies regarding Budapest and the agglomeration dropped significantly. The population’s expectations about buying and building properties are still mostly positive, but on a yearly scale a small decrease can be observed. In the case of renovating modernization, expectations haven’t changed, but there’s a slight decrease on a yearly scale here as well. In previous researches 68% of the participants expected a rise in prices. In October this number has dropped to 21%. The number of those who thought the prices won’t change has increased from 30 to 59 percent, and recently every fifth participant foresees decreasing prices.
However, the office market is still on fire. Utilization in Budapest and its periphery has slightly increased (from 91.8 to 92.4%). The average office rental fee in the capital is expected to increase by 4% in the next year.