Can apartment prices increase? After declining in the recent period, albeit to a minimal extent, sales prices in the downtown real estate market have started to move upwards. According to the expert, we can also expect this in the rental housing market, if the momentum that is now unfolding remains. By now, the old mood of interest has almost completely returned!
The recent period has been marked by the viral situation: both demand and supply have fallen. After the opening in May, the market gained momentum again, and the old interest in interest returned almost completely, said Gergely Garaba, the professional manager of the downtown offices of Balla Ingatlan.
There was only a minimal drop in prices during the months of the epidemic – and as owners did not follow market changes by lowering prices, so did demand for their properties – but as life returned to the market, prices rebounded and even a minimal price increase can also be observed. As a result, there has also been an increase in interest in homes that were previously overpriced.
In this connection, the real estate agent noted that the phenomenon of overpricing is still present in the downtown real estate market: in some cases it can reach as much as 30-40 percent. The reason is usually that the owners start from it: “the neighbor, the family said, there is a real estate in the family who touched it, here in the house such an apartment is sold for so much,” said Gergely Garaba.
However, he also drew attention to another reason, and that is that owners often set the price of advertising based on how much money they would need to move on. He also noted that, contrary to the idea that realtors are “pushing up” prices, real estate agents are just trying to set a realistic value, as without it, the efficiency of their work will deteriorate.
As for the level of bargaining, an increase was observed in the months of the epidemic, however, in parallel with the rebound in prices, the level of bargaining began to decline, so that it is currently hovering around 3-6 percent on average. Well-priced and well-maintained apartments sell out sooner, which means that even a month can be enough to sell such an apartment, but if it is a specifically sought-after type, it can sell even faster, Gergely Garaba added.
And what are the types you are looking for now? In the 5th district, the streets around the Parliament and the larger apartments on the banks of the Danube, ie larger than 60-70 square meters, are the most popular. Prices per square meter, on the other hand, are above one million forints.
A VI. and VII. basically all types and locations are sought in the district, while the prices are on average around 650 thousand forints per square meter, but depending on the location it can be higher. While District V is characterized by very modest demand, we can already speak of an average level of interest in these districts.
A VIII. District, on the other hand, is most characterized by very variable prices and demand, and this depends mostly on the location of the property. Prices in the district range from 400 to 700 thousand forints per square meter, but higher prices can be found in the vicinity of Corvin due to the development and orderliness of the area.
A IX. In the district, the József Attila housing estate is still the most sought-after, where sales prices range from HUF 500-600 thousand per square meter. Here, all types of flats are sought after, so real estate agents advertise any kind of property, the one who is interested arrives quickly.
The expert also touched on the market of newly built real estate, where there is a constant rise in prices due to rising raw material prices and labor shortages. Nevertheless, because of family support, customers are still looking for it, although many people change their minds on the go and prefer to use a different construction. By the way, it can be observed that three out of five buyers buy with the help of loans, and usually 20-60 percent of the price of the property is covered from it – Gergely Garaba added.
According to the expert, it is also felt that foreign investors are beginning to return to the market, however, this is still a negligible part of the pre-epidemic level, and until everything returns to the old wheel, they cannot be expected to reappear in the market.
Yet rental housing, according to the expert, is back to its “heyday,” which means there has been significant demand for it since it opened. Demand market is beginning to emerge, with minimal price increases for the time being. Tenants apparently trust the improving epidemic and the opening of universities. If this momentum persists and the epidemic situation does not worsen, the return of old, higher rents is also expected, despite the fact that we can still not talk about a revival of short-term housing.
As for the future, according to Gergely Garaba, if the fourth wave of the epidemic does not occur, the market can return to the old wheel in all respects. In the event of another wave, however, the situation in the real estate market can be expected again in the first half of the year.
Source: Ingatlanhírek by ingatlanhirek.hu.
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