Housing market and football… After the European Championship, Hungary is now in a football fever again, as serious battles are taking place again for the participation in the 2022 Qatari World Cup. After last week’s English and Albanian defeat, Marco Rossi is the fourth in the group, but the mathematical chance is still alive. We do not know what the outcome of the match against Andorra will be, but based on the analysis of Duna House, this is how real estate prices developed in the Group I countries as a result of the pandemic.
The coronavirus has not been selected, it has left its mark on the economic sector of every country in the world – including the real estate market. This was also the case in Hungary, England, Poland, Albania, Andorra and San Marino, although to varying degrees. Perhaps the biggest surprise was the Polish market, as many believed that the already rapid rise in house prices would be reversed by the pandemic. This has not been the case, so much so that it continues to show one of the fastest growing trends in the EU, and property prices often rival those of Western European countries. The unit price per square meter is already higher for a property in Warsaw than, for example, in Brussels (+ 13%) or Bologna (6.5%).
A similar trend was observed in Albania: the real estate market continues to develop dynamically. Of course, the pandemic also had an impact here in the first quarter of 2020, but due to relatively simpler quarantine restrictions, the market intensified and more transactions were registered than usual. Although housing has appreciated by 43%, overall the Albanian market is much slower than, for example, the Hungarian market. It takes an average of 10.4-11.6 months to sell a property in Tirana.
Against the economic effects of the coronavirus, the UK property market also remained stable. In November last year, for example, house prices peaked, and the average price in June this year was 13.2% higher than in the same period last year. And in August, Nationwide’s mortgage-based index rose 2.1% month-on-month and 11% year-on-year. On the demand side, there was also a strong recovery from month to month, with more than 98,000 transactions registered in September 2020, for example, a 21% jump from August. And interest could be further heightened by the temporary introduction of a duty exemption by the British government.
The health crisis in Andorra has not reduced the average price of housing either – especially in the capital, Andorra la Vella. Even during the closure, the demand for luxury housing in the country increased by 30%, mainly to € 4,900 / m2 for the average price of these property types. In the long run, these homes offer an excellent investment opportunity in one of the smallest countries in the world, of which only 20% can be built. This is also used by many foreigners, as 70% of home buyers are non-locals, most of whom are French or Spanish nationals.
In San Marino, similar in size to Andorra, there is a different trend in the real estate market – it is true that house prices have risen by more than 7% in the last year as well. Rising house prices, fierce competition, declining mortgages – and the economic effects of the pandemic – will result in a decline in buying sentiment, demand will fall short of supply, so it will still remain in the sellers ’market for much of 2021.
And what about Hungary? “The coronavirus had a drastic effect on the Hungarian real estate market after the epidemic hit Hungary,” said Károly Benedikt, Head of PR and Analysis at Duna House. “The number of transactions dropped to a historic low last April and then turnover showed a fluctuating trend for the rest of the year. However, 2021 brought a rebound again, which was slowed down only by the summer months, due to a stronger-than-usual wave of holidays and vacations. The Hungarian real estate market has developed exponentially, but it can still be said that the price calculated per square meter is one of the lowest in Hungary. Of the countries in the group qualifying with us in the World Cup qualifiers, England is the most expensive, a home purchase that may require more than 4.5 times more investment than at home. Thus, for an average residential area of 50 m2 in downtown London, almost 245 million forints would have to be paid, while in Budapest the average prices are around 50-55 million forints in the city center. In our capital, it would be more expensive to invest in real estate in Warsaw and Andorra la Vella, but the difference is no longer so pronounced (+ 36.7% and + 1.3%, respectively). In San Marino, on the other hand, average prices per square meter are 7% lower and in Albania almost 40% lower. “
If real estate prices were taken as a basis, England would qualify for the World Cup, with Poland finishing second in the group, followed by Andorra, Hungary, San Marino and Albania. Will the final order be the same as the list of property prices? Can Hungary get out of the national eleven straight or the qualifiers to the World Cup? It turns out in late November!
Source: Ingatlanhírek by ingatlanhirek.hu.
*The article has been translated based on the content of Ingatlanhírek by ingatlanhirek.hu. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!