The new family support measures introduced on 1 January are popular, and Hungarians consider them important and useful.Continue reading
Seasonal real estate market trends have been shaken up by the changes announced in the rural and urban family housing support (CSOK) and the baby-expecting loan. In July, real estate agency Duna House measured a 16% increase in buyer activity on the property market compared to mid-June.
“After last year’s slump, the upturn expected from the second half of 2023 has already begun, with experts reporting increasingly intense buyer interest instead of the usual summer slow season due to the announcement of the changes to the housing benefit scheme,” Duna House’s head of PR and analysis, Károly Benedikt, said. According to him,
as buyers’ interest increases, real estate prices are likely to react to the turnaround in a short period of time, so it is worthwhile for families to act as soon as possible.
The rural family housing support (falusi CSOK) remains, and has been increased, but is only available in small municipalities with less than 5,000 inhabitants. From January 1, 2024, the conditions for the baby-expecting loan will also change, with the amount of the interest-free subsidy increasing from HUF 10 million (EUR 26,700) to HUF 11 million (EUR 29,300). However, married couples will only be eligible if the female member of the couple is under 30 years old at the time of application, or – as a transitional arrangement until December 31, 2024 – if the wife is over 30 but under 41 and can prove her pregnancy.
According to calculations by experts from Duna House and Credipass, from July onwards, the families concerned will have only three months to search for a property if they still want to take advantage of the state support available now, as they will have to take into account the lead time for the loan replacement and the credit assessment.
Meanwhile, the residential rental market is also undergoing major changes, with the start of the academic year approaching. According to analysis by another real estate agency ingatlan.com,
as supply is increasing, demand is also on the rise, which could lead to an acceleration in rents with the announcement of the university admission points due next week.
The pre-spring of the rental season is indicated by the fact that the number of inquiries for apartments for rent in the capital in May and June exceeded the average for the first months of the year by 6-11 percent. In the first six months of the year, demand for apartments for rent in Budapest increased by eight percent and in the county towns by 11 percent, exceeding half a million enquiries.
As demand has increased, so has supply, with an increasing number of apartments for rent coming onto the market since April, and nearly 12,000 rental properties available in mid-July.
Ingatlan.com expects that this season, as rents become more expensive, tenants will want to replace their existing rent with cheaper ones. Demand for cheaper apartments for rent has increased by 57 and 40 percent year-on-year in June in neighborhoods with lower rents, such as Districts 18 and 20 in Budapest. Meanwhile, the average rent in the capital at the beginning of July was HUF 240,000 (EUR 640) per month.
House prices have risen across Europe in the last 12 years, except in Italy, Greece, and Cyprus, according to an article in La Verità, with the increase linked to rising GDP. In Estonia, the increase is 200 percent, in Hungary 180 percent, but in Germany it is lower, with an increase of 80 percent.
Featured photo via Pixabay
