The market is in dire need of newly built properties in Hungary


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Output of the Hungarian construction industry decreased 6.1 percent year-on-year compared to 2014 in August, in the first 8 months of the year however an 4.7 percent growth was registered according to the Hungarian Central Statistical Office.

Experts say that the construction industry halted in August and the construction of new homes is still missing from the market. Constructions however could be stimulated by low interest rates and government incentives – which could alleviate the market which is in tension because of the rapid growth of real estate prices.

The statistical office published data on the first 8 months of 2015 recently, and it is clear that in August there was a decrease in two categories of constructions. There were 5.2% less buildings built than the same time last year, while other kinds of structures – such as roads and utilities – declined by 6.8%.

The real estate market is growing and getting stronger, there is no doubt, but the constructions are yet to start again after the industry experienced a great blow during and after the financial crisis. In the short term there will likely be no positive trends emerging: there are very few new contracts, and in August even fewer contracts were drawn up to construct new homes.

According to experts the demand on the real estate market will likely last, but it would be premature to prognosticate any trends. There would be a need for at least 30-40 thousand new homes on the Hungarian market yearly.

(Source: http://www.piacesprofit.hu/gazdasag/nagyon-hianyoznak-az-uj-lakasok/)

 

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