Almost 8000 new flats were built up last year until the third quarter, and another 28,000 constructions got authentication. In addition, the prices rose to the record high in the most expensive district in Budapest, in the 5th District the average square meter price reached the average 700 thousand forints. Demand for real estate has also increased. The reason for this is the appearance of a number of favorable credit schemes, the expansion of the opportunities for using the CSOK and the possibilities for fixed-rate home loans. They combined increased of demand side. In addition, the incentive for investors was favorably influenced by simple reporting regulations, VAT reclaim and 5% VAT rates.
This year can bring even better indicators. Many of the large investment projects that have been launched as a result of the incentive measures announced in 2016 will be finished this year. This means nearly 9000 condominiums in Budapest. The time for the discounted 5% building tax will also end soon, in 2019 the deadline will expire and will be terminated. While many believe in extending the deadline, it is more likely that investors are trying to close their ongoing projects. Experts believe that construction volumes may exceed 30,000 in 2018 and 2019.
All in all, the Budapest real estate market is still booming. Investors, landlords, buyers and tenants can benefit from it in 2018.