Don’t hope for cheaper residential properties as yet

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napi.hu: The government expects a doubling of new residential property developments as a result of the VAT cut, but prices will reflect the changes in the long run only. Earlier discounts and subsidies have been cancelled which made new homes more expensive, but the new subvention scheme will hopefully boost the market.

The twin pillars of the new subvention scheme are the reduction of VAT levied on new residential apartments to 5 per cent from 27 per cent (for apartments and houses up to 150 and 300 square metres, respectively), and a refund of up to HUF 5 million for private person developers of VAT levied on not more than 70 per cent of construction expenses backed with an invoice. Both schemes apply until 31 December 2019. A new apartment/house is one that has no occupancy permit yet or whose residency permit is not older than 2 years.

Demand for housing was weak for most of 2023, but by the end of the year interest had increased, and from the beginning of 2024 the Csok Plus programme boosted the market

hvg.hu 16.04 In the first quarter of this year, home buyers took advantage of the new subsidy option in almost exactly one sixth of the loans, 16.7 percent. Of course, it was not only the Csok Plus programme that helped, but also the fact that interest rates have started to fall and inflation has also […]

Second highest house price increase in the EU since 2010 in Hungary

hvg.hu, 04 04 – In the last quarter of 2023, the average price of housing in the EU was 48 percent more expensive than in 2010 – Eurostat said. House prices in Hungary rose by 185 percent between 2010 and 2023. This is the second highest increase in the EU, with only Estonia 217 percent […]

Heirs left in the lurch at the probate hearing

napi.hu, 20.01 – Cryptocurrencies, social media profiles or documents stored in the cloud are increasingly common in probate proceedings. However, few people know that in lack of proper regulation and provisions, access to crypto currencies can be questionable for heirs, or that tech giants only allow access to deceased people’s data to those entitled to […]

Property and mortgage market data

napi.hu, 18.01 – More than a third of Budapest clients signed contracts for over HUF 20 million last year. Between September and December, for example, their share was 42%, which reflects an increase of 10 percentage points in 2021. The number of applications in this value range has increased steadily from quarter to quarter, to […]

Real estate prices have increased on the back of CSOK

napi.hu, 5 October – A study shows that the family home allowance (CSOK) has not improved the birth rate, but its amount has been incorporated into the price of homes. Three quarters of the subsidy was bunt up by the price rise, and the number of people having three children has not increased even in […]