The package of measures announced in the 2027 budget – including the Wekerle Plus program and the continuation of the 5% VAT rate for new homes – could give the Hungarian housing market a new boost, the real estate site ingatlan.com said on Tuesday.
In recent months, demand for home purchases has fallen significantly short of previous peaks, so the overhaul of the subsidy system could once again spur buyers who have been waiting on the sidelines – in both the new-construction and resale markets – according to the announcement.
László Balogh, chief economic expert at ingatlan.com, stated that it is crucial for the new-home market and residential real estate developments – and, by extension, for the housing stock as a whole – that the 5% reduced VAT rate on new homes be maintained. This is in line with previous expectations, he added.
For used homes, however, the interest rate on interest-subsidized loans will rise to 5%. As an example, they noted that for an average “Otthon Start” loan of HUF 35 million taken out for 25 years, this would increase the monthly payment by HUF 35,000 to 40,000. However, this is still more favorable than loan offers on the open market, which start at an interest rate of 6.25%.
Another important change in housing policy is that interest-subsidized loans may become more targeted: applicants must be under 41 years of age and own less than 50% of a property, and first-time homebuyers must actually move into the property.
The Sándor Wekerle housing and dormitory construction program may also help expand the housing supply; under this program, HUF 30 billion would initially be allocated to create housing units and dormitory beds. Officials stated that the modernization of existing properties could be encouraged by a new energy-efficiency renovation program, which could provide a non-repayable grant of up to HUF 7.5 million in addition to a low-interest loan of HUF 15 million. This could reduce housing maintenance costs and increase the market value of the properties.
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