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Real estate prices are still on the rise in Hungary

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A coming of the fall did not stop the growth of prices on the Hungarian real estate market, but studies show that the pace of growth has slowed down a bit.

Data shows that prices started to rise rapidly in the first months of the year together with the strengthening of demand. This however mostly was felt in Budapest, but not as much in the countryside.

One of the main reasons behind this is that those who rent out their apartments for the short term are mainly operating in the capital. Rental prices have risen with 20%, which motivated a lot of people to buy their own homes instead of renting, even if they could only do this with loans.

Demand drives the price growth in Budapest, the trend however can also have an effect on the demand itself. If the prices rise too high, demand is likely to decrease, the market will therefore soon correct itself. Experts say that December could bring a significant drop in demand, which will mainly be an effect of seasonality.

Small flats below 50 square meters are still the most popular in Budapest, therefore a greatest rise in prices was registered in this category in the past months.

Newly built houses also became more expensive, as did used and newly built apartments. Older houses however stagnated in the better part of the year, only in September was a slight rise registered.

Newly built houses and apartments are likely becoming more expensive because there are very few of them on the market. Used apartments are likely more expensive now because of the increasing demand in the capital - average prices in this category have risen more than 30% in the past nine months.

 

(Source: http://www.atv.hu/belfold/20151102-tovabb-emelkednek-az-ingatlanarak)

 

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