Experts: twist expected on the Hungarian property market in 2024

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Hungary saw a decrease in the average property prices. However, a twist is expected in 2024. Here is what experts say.

According to infostart.hu, the website of Infórádió, a Hungarian news radio station, Hungary saw a decrease in real estate prices in November. The average fall was 0.2%, but there were significant regional differences.

Based on László Balogh, the leading analyst of ingatlan.com, a Hungarian property search website, 0.2% is not a significant decrease on a national level. However, in an annual comparison, that rate is 2-3%. In some cases, mainly in big cities, that means HUF millions.

The most significant increase happened in the North Great Plains region (Nyíregyháza and its neighbourhood), while the highest decrease was in the West Transdanubia, close to the Austrian border. The latter can be strange since more and more Hungarians try to work in Austria and live close to the border to use the higher wages they get in Austria for having a higher standard of living in Hungary.

2024 will bring a twist to the property market due to the new state supports

In Budapest, the price increase was 0.1%, which is practically stagnation. Considering the EU’s highest inflation rate, however, we can say that investors kept their money in property lost on the business during the last year.

Based on the experts, 2024 will be a better year than 2023 concerning the number of purchases. In Q1 2023, the number of transactions fell by 36%, while in Q2, that rate was 20%.

In 2024, new state-supported loans will be available on the property market for families raising or planning to have children. Furthermore, Hungarian banks are to create loans with lower interest rates despite the high central bank’s high base interest rate level. The APRC maximum will be 7.3% in Hungary from next January.

As a result, experts expect 120-130 thousand property transactions in Hungary, a 10-20% rise. And that might result in a price increase spiral again in Hungary.

Read also:

  • Germans, Slovakians, Chinese and Romanians buy up Hungarian property – Read more HERE
  • Lots of foreigners buy property in Hungary: THESE are the most popular places

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