In the last quarter of 2020, 34,000 transactions took place in the residential real estate market as a whole, according to an estimate by Duna House, which is almost the same volume as in the last quarter of 2019. Turnover in December was minimally stronger than in the last two years, resulting in more than 10,000 sales in December.
On an annual basis, the market closed with 131,460 transactions based on the aggregation of the real estate company, which represents a 12% drop compared to 2019. The lag was due to social restrictive measures during the first wave of CoVID, the turnover in March, April and May was almost 40% lower than in the previous year, the low was reported in April with a lag of almost 60%.
From January this year, thanks to government subsidies for home construction, Duna House expects active demand, which may also lead to an increase in the number of transactions. In 2021, Duna House forecasts that the number of transactions will be a In the range of 130-150 thousand will be located.
Duna House’s national housing price index shows no change in real estate prices, with a nominal value of 193 and a real value of 133 still indicates a stagnant state. The picture is a bit more mixed by area and property type, there is a minimal decrease in the price indices for panel flats and a rise in the price indices for brick flats, the western region showed a development in parts of the country, while prices fell more in the east. Bargaining positions and sales times have also risen, which are also important features of a mature real estate market.
The market for newly built apartments in the capital continues also in IX., XI., XIII. the market is active in the district, most of the developments are located here, but the most expensive districts are typically still in Buda and the city center.
Already in total In 7 districts there was a price per square meter above HUF 1 million in the last quarter, so in Budapest it exceeded the limit of HUF 1 million per average square meter of newly built homes. The cheapest is the XXIII., XVII. and XVIII. district could be purchased in this category.
Investors, both as sellers and buyers, are showing more restrained activity compared to December 2019. THE customer customer profile shows an investor ratio of 36% in the capital, where only 4% of sellers said they had sold their previous investment. The first home buyers They keep themselves at a rate of 23% in both the countryside and the capital, the next period is their share may increase due to a significant increase in home improvement subsidies.
There was no significant quarter-on-quarter change in the mortgage market. The transaction value above HUF 20 million was present in the capital in the largest proportion (34%). In contrast, in rural areas, 4 per cent of customers in the east and 11 per cent in the west. The HUF 10-15 million transaction was the most popular in both the eastern and western parts of the country. Mortgage applicants expect the largest proportion to have a maturity of 20 years for their transaction, just as they did in previous quarters. In Budapest, the proportion was 42 per cent, in the west 52 per cent, and in the eastern part 38 per cent. In the East, the proportion of those with a 25-year maturity jumped to 22%. Based on the MNB’s actual data (1-10 months) and Duna House’s estimate (11-12 months), the mortgage loan market was HUF 4 billion stronger than last year in 2020, which represents an increase of almost 1%.
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