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1024 Budapest Hungary
Attorney's phone number Tel.: +36 1 316 9233
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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 the light of the millions of Forints granted by the state. Many people used the subsidy to buy property as an investment. The introduction of the new allowance has pushed up property prices significantly, making it even more difficult for young couples to buy a home. Only 23% of those who received state support agreed in advance to bear a child, well below the national average (33%). 77% of claimants only apply for support after a child that has already been born. More than half of them only committed to one baby, 45 percent committed to two children and only 2 percent dared to commit to having three children after receiving the subsidy. The income level of those who anticipated having a child was typically lower than that of those who already had children; for them, the subsidy was a great help in buying their own property.

Property prices to decrease in 2021

Napi.hu, 04.12. – For the next twelve months experts expect to see a residential property price decrease of 3-4% on average in Budapest. With the exception of the green belt of Buda and of detached houses market expectations have changed for the worse, i.e. market players expect that oversupply will increase in the future. In the country, however, the outlook has improved a little. In the Eastern part of the country two of three experts queried expect to see stagnation; the overall forecast promises a 3% price decrease. In the Western part of the country, on the other hand, 72% and 22% of property experts expect stagnating and decreasing prices, respectively. According to the overall prognosis the price decrease will be a mere 2%. As far as property rental fees are concerned 57% of experts say there will be a decrease, 36% expect stagnation and a mere 7% believes rental fees will increase in 2021. The expected decrease (5%) is smaller than  before.