Hungarian residential real estate market. One might expect the market
to be unsteady or even to plummet like many other regions in the world
but it seems to be safe as property owners hold onto their investments.
“The only property bubble that can burst is the one that inflated in
the first place,” said Zoltan Zelei, marketing director of Elephant Holding.
Overall real estate costs in most of Europe, including the Baltic
region, tend to be much higher than in Budapest, said Zelei. Prices in
Britain are, on average, eight times higher, while costs in the Czech
Republic and Romania are about twice as much. Latvia and Estonia have
experienced a bigger development boom than Hungary and the market in
those locales has become saturated. Perhaps the phrase “too much of a
good thing” applies to those particular property markets.
Zelei pointed out that real estate prices in Hungary have
experienced a steady climb of about 7 - 10% per year over the past
decade. Growth in the offer market has also maintained a low profile.
Fortunately, the cautious rise of the Hungarian market will save
them from the problems facing many other countries. Rather than
experiencing a severe decline, the property market should see a moderate building phase.
Zelei believes that inflation may begin to creep in as soon as next year, to the tune of 6 - 9 %.
Source: Budapest Times
