2015 was a year of constant growth on the real estate market and was mainly driven with investors. The decrease of VAT announced at the end of the year will without doubt incite further growth in a number of areas on the market.
Portfolio asked experts about what 2016 could bring – Dávid Valkó, lead analyst at OTP Jelzálogbank Zrt. thinks that the enthusiasm of investors in about to settle, however they will still be present on the market in great numbers in this year.
Antal Ballagó, a referent of FHB Ingatlan Zrt. thinks that the interest of investors may have dropped, but this wasn't only due to the increasing of prices but also because the number of primes estates in the supply – with good location, prices, and easy to put out for rent – decreased. Gábor Rutai from Duna House thinks it can't be said that investors are pulling out, they still make up a third of buyers in the capital and a fourth in the countryside. And besides the increasing purchase prices the profit that can be realized from rentals is also growing.
Others think that residential buyers can also uphold the upward trend, because there is a lot of leftover buying potential in the market from the years of the crisis.
What could the decrease of VAT bring?
According to the experts one of the main effects could be the decrease of prices of newly built houses as supply will grow, but it will also strengthen the construction industry. The prices decrease however is only speculation: there is an enormous need on the market for newly built houses which won’t be satisfied for a while despite the growing number of projects.
It is certain the 5% VAT is very attractive to investors. Most experts expect 2016 to be an even better year in the market than the last with a continuous growth in turnover and prices as well.
(Source: http://www.portfolio.hu/ingatlan/lakas/az_afacsokkentes_hozza_el_a_lakaspiaci_kanaant.224301.html)
