Hungary’s residential property market is foreseen to pick up only in 2008, following expected stagnation or a slight drop in 2007.
Hungary’s residential property market is foreseen to pick up only in 2008, following expected stagnation or a slight drop in 2007, according to Hungarian research firm Ecostat’s quarterly real estate report published on October 19, Interfax reported. “Due to narrowing demand, we expect the (Hungarian) residential market to stagnate or decrease slightly in 2007,” the report wrote. "In the following period (after year-end 2007), we expect the real estate market to stabilise and start slow acceleration.” According to the report, stagnation on the residential market is mainly due to the high number of newly completed apartments. Also as a result, average used home prices are foreseen to increase in line with inflation growth in 2007, while new home prices are expected to climb somewhat more, Ecostat wrote. The report said some 32,000 new homes could be completed this year, while prices of new homes are showing a five-seven percent increase compared to last year. The expected sluggishness of the Hungarian new home market in 2007 is foreseen to be offset by other segments of real estate development, Ecostat wrote.
