Strong real estate market activity in May
Photo by Fabio Balbi / Shutterstock.com
Estimates by real estate broker Duna House show the strongest real estate market activity in May in years, with sales up 5% from 2019 and almost 70% up from year-low last caused by the first wave of COVID.
Experts at the company expect the real estate market to close the second quarter with a total of 38,000 to 40,000 transactions.
The real estate brokerage estimate of 14,198 sales in May and the demand index of 89 points indicate an active real estate market. This is supported by the mortgage market, which is said to have reached another record high of over HUF 100 billion, with new loan products linked to housing creation subsidies also playing a role in the growth.
The Budapest metropolitan area remains one of the most active segments of the housing market. Looking at the location’s monthly data, more than a quarter (26%) of sales are over HUF 50 million and almost half (47%) are in the over HUF 35 million category. . Price per square meter statistics also show an increase in prices, with 19% of transactions now above HUF 600,000 per square meter, up from 14% in the previous month. Nationally, Pest County has the highest demand for properties in need of renovation or in poorer condition but still habitable. These were the preferred choice of 36% of buyers, likely due to the availability of affordable properties in this area that can be modernized with a home improvement program.
Investing, buying a first home, and moving to a larger home remain the top three motivations for buying a home. However, the preference proportions have changed – not only compared to the same period last year, but also compared to April of this year. While investors in Budapest represented 41% of the market a month ago, their share is now declining and first-time buyers are in the majority (33%). In contrast, in May, the number of goods purchased for investment increased sharply in rural areas (from 10 percentage points to 33%), overtaking the motives for purchasing a larger asset. .
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