Young Hungarians priced out: Rural home prices soar, first-time buyers struggle

First-time buyers accounted for around one in four home transactions in the countryside in the second quarter of the year, unchanged from the same period a year earlier, real estate broker Duna House said on Friday.

According to their data in Q2, a significant price increase could be observed in the rural real estate market, with 44pc of properties sold at a price level above HUF 600,000 (EUR 1,514) per sqm, while a year earlier this ratio was only 24pc. The ratio of real estate transactions above HUF 50 million (EUR 126,000) almost doubled from 27pc to 49pc.

Duna House said rising prices could most sensitively affect young people buying their first home, making it increasingly difficult for them to enter the housing market.

Duna House noted that the Home Start subsidised credit scheme for first-time home buyers from September provides more favourable loan conditions compared to market products, but it is not certain that it will bring a meaningful breakthrough, as significant self-financing remains an unavoidable factor.

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