Experts say the upswing on the real estate market will be persistent in the coming months or even years, and the boom in downtown Budapest will likely spread to the outer districts.
Low base rate, money flowing in thanks to the crashing of brokerage firms and general optimism on the market due to economic growth are driving the increase in demand. Beák Attila from the Hungarian Real Estate Alliance (MAISZ) says in the last 30 years demand always rapidly recovered after economic downfalls, and investors turned to the real estate market where which they viewed as a stabile and safe investment opportunity.
Beák expects new residential projects that were halted in 2009 to be continued, which can further strengthen the market, as those moving into new apartments would likely sell their old ones.
In the most popular streets of the capitals downtown apartments are sold within days, and prices have gone up 20-30% in some neighborhoods compared to last year. The market is expected to grow steadily further and according to some analysts in the following 2-4 year prices can increase around 5% annually.
The growing real estate market also has a positive effect on the job market, as real estate companies are preparing for a prolonged upswing and are opening more and more job opportunities. Most of these however do not require relevant qualifications. This poses some risks as with properly qualified workers most of lawsuits could be avoided according to Kispál Sándor of MAISZ.
Source: http://www.vg.hu/vallalatok/ingatlan/hosszu-tavasz-johet-az-ingatlanpiacon-451357
