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Rents in university towns up by ten thousand forints

napi.hu, 23.08. – According to the KSH-ingatlan.com rent index, rents in several university towns increased by 2.7 percent per month in the peak summer season, but they are still below the peak values of January 2020. In several university cities, rents have risen by 10,000 forints a month. Nationally, rents in the supply market rose by 2.7 percent in August compared to June, with the capital showing a 2.4 percent increase. Compared to the low point in January this year, average rents are up by more than 8 percent. A recovery was expected and rents were also expected to rise, mainly due to the start of the summer rental season in July, with students entering the demand side after the announcement of the university entrance limit scores. Although students are basically the main demand generators in the summer months, those looking for work in the city are also playing a role in the recovery. Compared to 2015 averages, the rent index showed that national rents were 38 percent higher in July this year, while rents in Budapest were 30 percent higher, but this is still below the record high of January 2020, when both the national and the capital’s indexes were a good 40 percent higher than in 2015.

Government super weapon apparently missed its target

napi.hu 4 July 2018 – The end of the preferential 5 per cent VAT rate will put an abrupt end to the housing boom and result in a brutal price increase of newly-built apartments. The almost 25 per cent price hike will have a serious effect on instalments paid for new apartments, new construction projects and on new developments after 2020, said to portfolio.hu based on a radio interview with Mihály Varga finance minister.

Varga reminded that the term of the Preferential VAT Act runs between 2016 and 2019 and that the government decided to forego significant tax income to further its demographic goals. However, 10 per cent of new apartments are bought by foreigners in Budapest, which means the benefit is exploited by real estate investors which is not what the government was aiming to achieve.