A recovery is expected in the real estate sector this year. Budapest and rural market trends indicate an increasing number of property seekers. The growing demand mostly affects the agglomeration market. According to Otthon Centrum, a great number of people are seeking to realise long-planned purchases, while there is also an increasing number of first-time buyers.
For the first time since 2008, a boom is expected this year in real estate. This is the first sign of recovery since the economic crisis, which left a serious effect on the market.
Research by the Otthon Centrum real estate franchise network shows that between 2008 and 2013 market turnover decreased 42% on a national level and 52% in the agglomeration of Budapest.
The greatest decline occurred in the south and southeast agglomeration sectors, in settlements such as Dunaharaszti, Érd, Százhalombatta, Szigethalom, Vecsés and Gyál. The least affected region was the northern sector, where decline reached “only” 44%: Budaörs, Budakeszi, Zsámbék and Telki were some of the less affected settlements.
Otthon Centrum, however, sees changing trends for the remainder of 2014. The number of property seekers has increased in almost all sectors, which also manifests in the number of sales and purchases.
The franchise network furthermore called attention to the boom in the agglomeration market. In the first semester of 2014, an increasing interest occurred for several – previously less popular – settlements in the northwest sector, and there has been increasing demand from metropolitan residents to purchase greenbelt properties.
Many people are seeking to realise long-planned purchases now, while others are purchasing their first homes.
The research also indicates what property seekers are looking for in terms of prices. In and around Szentendre, for example, the average family with young children would give HUF 20-30 million for a family house, while the upper limit for wealthier families would be HUF 40 million. There is also demand for houses in the HUF 10-15 million range: most of the time, however, such real estate needs serious renovation.
In contrast, the HUF 10-15 million homes are the most popular ones in Dunaharaszti, whether speaking of family houses, duplexes or rowhouses.
In Solymár, property supply does not meet demand: while many people are looking for houses for HUF 30 million, there are not enough properties for sale at this price. Therefore more and more people are deciding to look for construction sites for around HUF 10 million.
The advantage of the Solymár area is that in bordering Districts II and III of Budapest, it offers greenbelt properties at a substantially lower price than these two districts.
In Vác, Dunakeszi and Göd, the most popular real estate is in the HUF 6-12 million price range. These properties mostly need much renovation.
There is a growing trend among investors to buy cheaper, unrenovated properties and then sell the renovated ones at substantially higher prices.
In Vác and Dunakeszi there is also a great demand for smaller properties in the HUF 6-8 million range.
In Gödöllő, real estate buyers search for houses for HUF 6-12 million, often for renting. Among home-seekers, demand varies between HUF 12-20 million, even though most of the HUF 12 million real estate is in need of serious renovation.