The Hungarian real estate market switches to high gear
September 4th, 2015

The number of transactions on the Hungarian market can reach up to 150 thousand by the end of the year according to the Otthon Centrum network. Growth is stimulated mainly by investors and those who buy flats for their own purposes.

Thanks to great demand bargain rates have dropped below 10 percent and brick-built and panel apartments can be sold more than one month sooner now than a year before. Prices have also been increasing for both – the growth even reaches 20 percent for the latter.

The number of transactions grew by 28% in 2014, but this year we can expect that number to double. If there will really be 150 thousand transactions by the end of the year the market will almost reach the pre-crisis level, which was around 170-180 thousand a year.

Used brick-built flats are selling for more than 20% higher prices in the capital, while in the Western counties the growth is around 10%.

Panels became even more expensive with a price increase more than 20% both in Budapest and the countryside. On the long term analysts expect a much more modest increase, around 10-15 percent a year.

Buyers are even bidding on the market now and sellers give much less discount from advertised prices. But in case of 15-25 percent of the transactions sellers did not give any discounts, depending on weather they selling in the countryside or the capital.

Time in which apartments can be sold decreased significantly – as the number of people interested grows they are forced to make quicker decisions. Estates are sold fast which means if they wait, they might not have the chance to buy that anymore, so they are buying even faster.