The Real Estate Market of Hungary
March was the strongest month for the real estate market in Hungary in over a decade. According to Duna House, which surveys the Hungarian housing market, 15,630 residential property deals in March. This is up over 7% from February when there were 14,970. In general, foreign buyers are gravitating towards the central districts of Budapest, such as Buda and Pest. A growing population, lower cost of living, and low unemployment contribute to the high number of foreign buyers. Best way to Buy a Property in Hungary?
While Hungary’s economy is expected to recover from the COVID-19 crisis, it is important to remember that the sluggish economy hindered foreign investment and domestic consumption. Regardless of the state of the economy, foreign investors are closely monitoring occupational performance. The Hungarian CRE market is characterized by low vacancy, limited supply, and a strong domestic investor base. While it may seem risky, it is likely to recover soon.
According to the Duna House Transaction Number Estimate, the total demand for real estate in Hungary in November was similar to October and November last year. While the percentage of new leases increased slightly from the previous quarter, the rate of pre-lease agreements remained under 10%. This indicates a trend that suggests that private buyers are beginning to adjust to the higher prices of commercial property in Budapest. It will be interesting to see if this trend continues to continue.
Despite a slowdown in the economy, the Hungarian real estate market has continued to grow. In early 2013, the demand for Hungarian commercial real estate slowed down. As a result, the price of the country’s properties began to rise, though prices rose slightly more in the capital. In the countryside, most short-term apartment renters operate from homes in Budapest. In both cities, the number of new apartment completions is still below 10%.
Budapest’s real estate market has outperformed the national average in the past six weeks. Budapest is bucking the national trend, with one property sold for every three unsold properties. As a result, a third of real estate transactions in the capital is for investment purposes. The majority of buyers, however, prefer smaller, newly renovated properties. As a result, the market is experiencing a healthy recovery in the first half of 2015.
The real estate market of Hungary’s retail sector experienced a boom in November and December, according to GKI. Despite the weak economy, the retail sector’s demand remains steady. In November, the retail store turnover declined by 0.8% every year but increased by 1.1% every quarter. Similarly, the proportion of internet retailing increased by 43.2%. As a result, the real estate market of Hungary is now on an upward trajectory.
In November, the real estate market of Hungary produced the same numbers as a year earlier. The GKI, a real estate research company, surveyed 108 companies and drew from a representative public opinion poll of 1,000 people. The market for a used-real estate, which costs between $600-$700 per square meter, is expected to recover in 2021. As a result, the demand for second-hand houses and apartments has increased. Meanwhile, Budapest’s single-family homes and prefabricated units are priced below the 10% threshold.
The Hungarian real estate market is currently experiencing a resurgence. After a recession, the city saw a 50% drop in transactions. During the global financial crisis, the lack of confidence in the local economy led many buyers to put off their purchase decisions. The Budapest real estate market is experiencing a 40% increase in transactions in the first half of 2015. This positive trend in the market is being driven by the fact that a lack of confidence among foreign buyers has lowered the vacancy rate in the Hungarian property market.
After a turbulent start to the year, the Hungarian economy has begun to recover. In particular, the country has seen a rise in international travel. The COVID-19 crisis has impacted Hungary’s macroeconomic performance, but it is expected to rebound this year. In addition to its low vacancy rate, the Hungarian CRE market is also characterized by low supply and high quality. This is encouraging for both investors and domestic businesses.
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