The main reason behind the exceptional figures is the housing loans, where the amount of new contracts increased by almost 40 percent.Continue reading
Financial institutions granted more than a total of HUF 1,300 billion (EUR 3.65 bn) in housing loans in 2021, 40 percent more than a year earlier, according to real estate brokerage firm Duna House’s estimates.
While the summer period caused a slowdown in the housing market, it was also the period when the share of loans disbursed was the highest.
According to Duna House data, more than a third of customers in Budapest signed for transaction values above HUF 20 million (EUR 56,144), while in rural areas the most popular category remained between HUF 10-15 (EUR 28,072- 42,108) million throughout the year.
The average loan size increased across the board compared to the previous quarter, with the average loan amount in the capital city at HUF 20.5 million (EUR 57,547), and in rural areas at HUF 12.5-13.7 million ( EUR 35,090-38,459) between September and December 2021.
The majority of customers had a 20-year term when signing the contract, with more than half of the applicants in rural areas and 35% in Budapest. The second most popular alternative was 25 years, followed by 10 years.
According to the report, in Western and Eastern Hungary, a quarter of all loan transactions were accompanied by an application for the Family Housing Support Program (CSOK) in the fourth quarter of 2021, while in Budapest the share was 18.1 percent, and countrywide distribution was 20.6 percent.
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