A slight correction in real estate market sales in October

Looking at real estate market sales, Duna House estimates that there was a slight decline in the real estate market in October after the recovery in early autumn. Last year, 11,526 transactions were closed, which is lower than in September (11,807) and the same period in previous years, but still shows an increase of 3% compared to the summer months. At the same time, the Demand Index is declining, currently standing at 74 points.

The volume of the housing mortgage market also fell back to May levels. According to the estimate of Duna House Finances, a HUF 107 billion mortgage loan was realized in Hungary in October. Although this is a decrease compared to the record data of the previous months, it forecasts a value 31% higher than in the same period last year. Based on the MNB’s actual data for January – September and Duna House Finance’s last month’s estimate, more than HUF 1,000 billion worth of mortgage loans have been realized on the market so far.

In Pest, there is still a balanced demand in terms of house prices, while in Buda the proportion of flats sold at a price of more than HUF 900,000 per square meter has jumped significantly (44%). In the agglomeration of the capital, there was also an outstanding increase in the category of real estate with a unit price of HUF 600,000 / m2 – their share increased from 6% to 23%. The panels cost an average of 356 thousand forints per square meter in the east and 341 thousand in the west. In the case of brick dwellings, this amount is HUF 416 thousand and HUF 421 thousand, respectively. However, apartments in the capital are sold at 1.5-2 times higher prices. Bargaining rates have declined across the country. In the real estate market of the capital, it is interesting that Zugló overtook Angyalföld in terms of customer interest, ie in October, most people wanted to buy real estate in the 14th district.

The growing role of investors in the real estate market is clear. Almost half of the real estate transactions in the capital were purchased for investment in October, with an average value of HUF 50 million. The rate of investment purchases was last so high in the pre-coronary virus period of February 2020, which clearly shows a renewed increase in investment property purchases. In rural areas, this motivation was mentioned by 26% of customers, but the average purchase amount was “only” HUF 22.3 million. The activation of the market is shown by the fact that the share of transactions related to investment has significantly increased not only from the buyers ‘but also from the sellers’ side. In Budapest, 41% of sellers already sell their property purchased for investment purposes – typically a 60-65 square meter apartment – with an average value of HUF 55.5 million. In rural areas, the number of properties offered for sale for the sale of the investment increased from 4% to 23%, although they are larger, 75-80 square meters, but their owner can get an average of HUF 31.1 million with them.

The full analysis at this link available.

Source: Ingatlanhírek by ingatlanhirek.hu.

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