Prices on the Budapest housing market have remained virtually unchanged since January, and with the end of years of price increases, a buyer’s market is beginning to emerge, OTP Bank’s real estate listing portal revealed on Monday.
According to an analysis by zenga.hu, the average price per square meter in the Hungarian capital has stabilized at around 1.53 million forints (4,200 euros), very close to the price cap set by the Otthon Start program.
Demand for properties priced higher than this has declined, and it is becoming increasingly difficult to raise prices in this category.
Most sellers are waiting it out, while buyers are waiting for a chance to negotiate. The rise in real estate prices has been limited to the cheaper districts of the Pest side.
There are also fewer home-seekers. At the end of April, the number of property inquiries was 11% lower in the countryside and 35% lower in Budapest compared to the same period last year. Demand for single-family homes is holding up better, while interest in condominium units has dropped by 40% based on data from the previous month.
The slowdown in the capital’s housing market is clear, despite a 38% increase in supply over the past year.
Demand is struggling to meet supply. In such a situation, the success of a sale depends more on value for money and the extent of negotiation,
the report added.
The housing market situation may continue to develop similarly in the longer term, meaning that a recovery cannot be expected next month either.
Via MTI, Featured image: MTI/Illyés Tibor
