Lawyer's addressLövőház utca 20/A.
1024 Budapest Hungary

Attorney's phone number Tel.: +36 1 316 9233
Law office's fax number Fax.: +36 1 336 0107
Attorney's office e-mail info@drlittner.hu

New apartments may flood the market

napi.hu, 04.11.2017 – A leading real estate expert said as a result of the 5 per cent preferential VAT rate that is expected to expire in 2019 the number of newly built apartments will become available on the market in the next couple of years will exceed even today’s figures.

There is an apartment construction boom in Hungary which, apart from the reduced VAT rate, is also due to CSOK, the Family Home Allowance. On a year-on-year basis the number of new apartments completed grew by 50 per cent in the first three quarters of 2017. The average price per square metre in Budapest, the Western and Eastern regions of Hungary is approximately 650-700k HUF, 360-400k HUF and 350-380k HUF, respectively. The differences are even greater for pre-owned apartments: these properties are three times more expensive in Budapest than in other parts of the country.

CSOK has still not taken grip

napi.hu, 27.09.2016. – The initial enthusiasm has ebbed and now CSOK (Family Home Allowance) does not seem to be such a success story after all. Real estate agents say the most serious problem is the sluggishness of the approval and disbursement procedure, which in turn causes extreme difficulties to construction contractors. CSOK is unlike a bank loan that you can apply for during the construction phase. The future allowance must be pre-financed either by the buyer or the developer. Most applicants are still waiting for their money even though they signed their contracts months ago. Banks regularly reject the documents, requesting new or additional information or amendments. On account of the poor experience of the past months developers and construction contractors are not happy to deal with CSOK clients and ask their real agents not to engage buyers who want to finance their purchase of a new apartment from CSOK.