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1024 Budapest Hungary

Attorney's phone number Tel.: +36 1 316 9233
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Attorney's office e-mail info@drlittner.hu

Apartment boom at Lake Balaton

napi.hu, 24.05.2017 – Many new apartments are being built at Lake Balaton and prices at Lake Velencei are also increasing. According to figures published by KSH, the National Statistical Office of Hungary, holiday home construction is also on the upswing. At Lake Balaton apartment development projects are also intensifying. Judged by the number of planning approvals and properties in the blueprint phase the number of completed apartments will peak in the next few years. Buyers increasingly prefer newly built condominium properties with a panoramic view directly at the lakeshore. These command significantly higher prices, not only on account of their better features but also because the number of building plots with direct connection to the water is diminishing.

Even though prices at Lake Velencei are lower compared to those of Lake Balaton, some factors put an upward pressure on prices there, too. First, the effects of the bourgeoning apartment market of neighbouring Székesfehérvár can also be felt in the surrounding area. Second, some settlements around Lake Velencei are comparatively close to Budapest, which means they can offer a viable alternative for buyers from the capital.

Residential property market report

napi.hu, 12.05.2017 – According to a recent residential property market report published by MNB, the National Bank of Hungary, prices in Hungary grew by 15.4 per cent on average last year. This increase can continue at a more subdued rate in 2017. Budapest witnessed the highest increase with 22.5 per cent, which is, however, still lower than the 25-30 per cent seen in previous years. Domestic residential property market is still shaped by rising prices and a growing turnover, and the supply side responded to increased demand with a significant boost of construction activity. The report, which was published for the third time this year, says the increase in demand was supported by favourable household income and labour market trends and low interest rates. MNB experts say neither the increasing volume of residential loans nor the growing average apartment prices are a sign of overheating.

Experts expect a boom in apartment construction

napi.hu, 03.04.2017 – According to experts the number of apartments constructed this year may rise significantly, but a change in VAT legislation and the lack of skilled workers may have an unwelcome effect on the construction industry. A recent survey showed that the number of condominium apartments completed this year will reach 2010 highs, but even last year’s 10 thousand was a four-year record. Experts base their estimate on the number of planning applications mainly in the periphery of Budapest, in larger Hungarian towns and in the vicinity of Lake Balaton, mainly as a result of the 5 per cent VAT. This VAT rate will probably be in force until 2019 only, so – due to the time requirement of planning permission procedures – developers have only one year left to start new projects.

Satellite settlements’ decreasing popularity

napi.hu, 26.09.2016. – The population of Budapest is increasing by almost 0.6 per cent a year, while the settlements in the outskirts are rapidly losing popularity. The inner districts of the capital are more and more appealing to apartment buyers, which is reflected in increasing prices. Ten to fifteen years ago Budapest and several other large Hungarian towns were facing slumming, a phenomenon known by Western metropolises, i.e. the radical worsening of standards of living in the inner districts. However, development projects succeeded in reversing this tendency and now potential buyers are again showing increased interest in downtown areas. At the same time, the population growth of satellite settlements has slowed down: while at the turn of the millennium some of these places registered an annual growth rate of as high as 4-7 percent, today there are hardly any that grow at a rate exceeding 1 per cent a year.