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Budapest Times
05-08-2025
- Business
- Budapest Times
Housing market demand hits 3-year high ahead of Home Start Program
Demand in Hungary's housing market reached a three-year high in July, driven largely by anticipation surrounding the upcoming Home Start Program, according to data released by on Sunday. The platform recorded over 284,000 phone inquiries in July, surpassing figures from the same month across 2022 to 2024. Monthly demand grew by 14–39 percent across counties, particularly in regions where previously high prices had suppressed interest. This uptick was supported by an expanding supply, driven mainly by owners hoping to move. 'A market turnaround is likely, with strengthening expected in the coming months,' stated. Chief economic expert László Balogh noted that prospective buyers who had postponed entering the market are now acting to get ahead of the expected demand surge. The announcement of the Home Start Program also stimulated interest in property purchases through its impact on the rental market. In regional university cities like Szeged, Pécs, and Debrecen, demand for rental units rose by 25–30 percent following university admissions announcements. In contrast, Budapest saw no typical seasonal spike, as many parents now consider buying instead of renting, thanks to the program's financial benefits. In some cities, mortgage payments may even undercut monthly rents. The strongest monthly increase in buyer interest was in Szabolcs-Szatmár-Bereg County, where inquiries rose 39 percent. Győr-Moson-Sopron saw a 37 percent rise, and both Pest and Vas Counties posted 36 percent gains. Supply also grew in July, with over 30,250 residential properties listed on the site, reflecting a 2–3 percent monthly and annual increase. According to Balogh, listings may continue to rise in August, but from September, demand linked to fixed 3 percent interest rates could result in faster sales, stabilizing the number of visible listings.
Reuters
17-03-2025
- Business
- Reuters
No stability risk from investor-fuelled Hungarian house price surge, central bank says
Summary Strong demand from investors lifts price growth to 3-year-high Part of demand coming from big retail government bond payouts Tighter credit conditions would have limited impact on prices Hungarian house prices have more than tripled since 2010 BUDAPEST, March 17 (Reuters) - A surge in Hungarian house prices is driven by investors rather than borrowers and is therefore less risky to financial stability, the central bank told Reuters. Any tightening of credit standards would have a limited impact on prices, the bank said. Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. The bank was responding to a survey by real estate company that said prices in Budapest jumped by nearly 17% year-on-year in February, the fastest pace in three years. This had been fuelled by retail government bond holders funnelling some savings into the housing market, the survey said. The central bank's own survey showed Budapest house prices rising by an annual 15% in the fourth quarter, with the pace of price growth accelerating further in the first two months and the Budapest property market showing sings of overheating. No cooling off was on the horizon as house prices were climbing faster than incomes or rental costs, it said. "The increase in demand in the housing market is driven not primarily by credit growth, therefore, it is less risky from a financial stability aspect," the bank said in an emailed reply to Reuters questions. Prime Minister Viktor Orban's government spent 1.038 trillion forints ($2.83 billion) on debt servicing in the first two months, worth some 1.2% of Hungary's estimated 2025 gross domestic product, following a surge in inflation. "Investors pulling out from government bonds only partially returned to the housing market, but even that had caused such a demand boost in Budapest, that prices have taken off," real estate expert Laszlo Balogh said. "This also forces buyers looking to acquire property for their own use onto the market as they are looking to avoid being priced out," Balogh said. Hungarian house prices have more than tripled between 2010 and the third quarter of 2024 based on Eurostat data, the fastest pace in the European Union alongside Estonia. The central bank said households' stock of mortgages as a percentage of economic output was among the lowest in the EU, while a majority of housing market transactions were financed without borrowing. "Any tightening (for example in credit affordability standards) could impede the ability of some households to buy homes, while having a limited impact on house prices," it said. ($1 = 366.67 forints)
