Real estate market in Hungary expected to grow even more expensive
November 5th, 2015The prices of apartments are on the rise for more than one and a half year on the Hungarian market, but some experts say the trend is far from over. Several signs point to lasting increase.
Among these is the fact that the market still hadn't caught up to the pre-crisis levels and large scale new constructions are yet to restart. Other than that it would not be unusual to experience a growth even greater than the current one, it has already happened on the turn of the millennium.
Ongoing recovery
2008 was a very bad year for the Hungarian real estate market – the financial crisis hit all European markets. The decrease was significant, residential properties lost more the 23% of their price on average until the first quarter of 2014. The market has improved greatly since then but entering the second quarter of 2015 prices were still 12% lower than before the crisis.
In the years since the crisis many transactions have been postponed, in the years following 2008 the number of transactions on the market did not pass 90 thousand yearly. But a lot of buyers who decided to wait entered the market in the last one and a half years.
The current demand on the market is not extreme, according to experts it is just returning to normal – it only seems that prices are booming to great levels because the decreased so much during the crisis.
If we look at the history of the Hungarian market it is not unlikely that the current positive trend will be persistent for several years – it has happened before multiple times.
And it is not only the general population that rediscovered the market – Hungarian real estate prices are low compared to other European countries, therefore many investors come here to the country to put their money in real estate. The demand is increasing and there is much more potential in the market – and these are not the signs of a bubble but a sustainable market growth.