The rate of house price appreciation fell in April, with prices halving in some areas and stagnating in others.
hvg.hu 9/05 The rate of house price increases slowed down in April. The small momentum of the demand recovery in the first quarter faded out by April, which is good news for buyers, as more sales are expanding supply, making it easier to sell existing homes when moving on, and avoiding much higher prices when buying the next property.
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 fallen.
Most people are looking for their first home in Budapest. Of those who are moving outside the capital, the largest numbers are buying in Pest County – obviously in the capital’s agglomeration – and in Bács-Kiskun.
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 higher.
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 it on the basis of their own specific rules.
Digital assets, such as cryptocurrencies, business Facebook profiles or video game accounts can generate money and have a value, so it is worthwhile for everyone to think ahead about what will happen to them when their owner or user dies. If you fail to do so, your heirs may never have access to your digital assets.
The situation is complicated by the fact that digital assets are difficult to seize under current legislation. In addition, as digital phenomena change very rapidly, it is more difficult for regulation and judicial practice to keep pace.
Rent growth slowed down in August
napi.hu, 22.09 – The rise in rents slowed down in August, with rents rising by around 1 percent compared to the previous month, with 1.1 percent in Hungary and 1.2 percent in Budapest. Despite seven months of steady increases, prices were on average only 3-4 percent above the level of a year earlier, the Hungarian Central Statistical Office (KSH) said in its latest report on the KSH-ingatlan.com rent index published on Wednesday. Rents in the inner districts, which form the backbone of Budapest’s supply, rose by 2.6 percent over a year, while the most significant increase in the capital was in the transitional districts of Pest, at 5.0 percent, MTI reports. Compared to August last year, rents rose by 3.7 percent nationwide and 2.8 percent in Budapest. Compared to the low in January 2021, the average rent of apartments for rent in Budapest was about 9.8 percent higher, ranging between 7 and 13 percent per district.
There’s no going back: changes in the land registry registration procedure
napi.hu, 17.09 – After 1 February 2023, think carefully about the rights you register in the Land Registry. Under the new Land Registry Code, which will enter into force on that date, you will not be able to “change your mind” after registration, i.e. to cancel the contract on which your registered right is based and ask for the land register to be restored to its original state. Although this is a substantial tightening of the current rules, the legislative objective is not entirely clear and there are some practical difficulties to be expected. The essence of a property title transfer is that the owner transfers ownership of the property to another person, and the land registry registers the new owner in the land register accordingly. In practice, it happens from time to time that the parties change their minds afterwards for some reason and decide to terminate the previous title transfer contract.
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.
Real estate market recovered
napi.hu, 06.10 – According to Q3 2020 data the real estate turnover in the Hungarian market has already recovered. Judged by the analysis of a major real estate agency the number of sales in these three months was the same, about 38 thousand, as in July-September last year. The company expects a balanced market in the last quarter of the year and the same activity as last year, which could mean 34-35 thousand sales.
According to data published by the company, 2,708 properties changed hands in September nationwide, and buyers took out residential mortgages worth HUF 75 billion. Although real estate sales fell short of September by about 5 percent year-on-year, the entire quarter saw no sign of the previous decline, and the market now shows the intensity of a year ago.
According to the company, the mortgage loan market is also showing signs of recovery, as the estimated volume of HUF 75 billion is the same as last year’s central bank data, and the market performed well on a quarterly basis, too. In the third quarter of this year, people spent a total of nearly HUF 225 billion on housing loans for residential purposes, based on estimates and central bank data.
Coronavirus: a new age dawning on the property market
Napi.hu — The Coronavirus pandemic and the declaration of state of emergency have brought about an almost instantly perceivable change on the property market, too. There are no signs of a wide-spread and significant price decrease as yet, but there may be more and more “good buys” appearing on the market in the near future.
Personal visits will be replace by informative and relevant online advertisements and the role of real estate agents will gain importance, too.
Demand has decreased over the past few weeks but supply has increased. Also, buyers have a wider bargaining span because those who really want to sell their properties can count on 10-15 per cent less potential buyers than before the crisis.
Another reason of the decrease in demand is that some buyers postpone their purchase and “rubbernecks”, who have less serious purchase intentions, may also vanish from the market. Those who are still in the market as buyers have serious intentions and strive for a quick and effective transaction.
Apartment market: price hike stalled?
Napi.hu, 30 April 2019 – Although the annual rate of increase of apartment prices has fallen, there is still a significant hike exceeding 20 per cent in Budapest, according to the latest survey published by the National Bank of Hungary.
In Budapest, the Q4 2018 the annual acceleration rate of prices was slightly slower but still strong at 22.9 per cent. The latest apartment price index shows a slower nominal annual rate of increase of 18.2 per cent for country towns, which exceeds the figure for the previous quarter.
In small settlements, the nominal price hike was 2.3 per cent, 13 percentage points less than the national average, which indicates a further increase of the difference between smaller and larger settlements.
That said, according to the summary report published by the National Bank of Hungary, the nominal price increase was only 0.2 per cent on average in the fourth quarter of 2018, while the annual rate of increase was 15.2 per cent, compared to 16.2 per cent in the previous quarter. The national average of apartment price increase was 11.6 per cent. In Q4 2018 the national average of real price increase was 11.6 per cent.
Skyrocketing apartment prices
napi.hu, 29 January 2019 – As a result of last years’ price increases we need to work years more for an apartment, assuming we save up our entire salary. According to the calculations of a large real estate agency the price of an average apartment in a high-rise concrete block equals 8.5 years’ salary, while an apartment in a brick and mortar building costs the equivalent of 14 years’ salary. The exact figures depend on the job of the buyer, but an average concrete and a brick and mortar apartment cost 103 and 169 months’ average salary, respectively – assuming the buyer is not taking out a loan to finance the purchase.
Employees of the financial sector are in the best position here: their high average salaries enable them to acquire an apartment for 4.5 and 7.5 years’ entire wages, respectively. Naturally, their situation has also deteriorated compared to 2014. Employees in the catering industry are facing the biggest difficulties, but those in health care don’t have it easy either. They need to work 13 years for an apartment in a high-rise and 21-22 years in a traditional building. For catering and health care employees the same figures in 2014 were 8 and 14 years, respectively.