Positive Growth Outlook at Duna House Group

The real estate Duna House Group achieved record volumes in 2022 by the Italian expansion. The dramatic decline in volumes in Poland and Hungary in 2022 was halted by the end of the first quarter of 2023, with already a quarterly increase in Poland and a turnaround in Hungary in March 2023. The Group says it starts 2023 from a market low, but with a very positive growth outlook.

In Hungary, volumes are down 47-51% year-on-year (y-on-y) across segments, while monthly quarter-on-quarter (q-on-q) dynamics everywhere point to a bottoming out and bounce-back. The Group's Hungarian franchise real estate volumes declined by 44% on a y-on-y basis, while March shows a 42% rebound compared to the first two months of the year.

Own office volumes fell 51% y-on-y, but March was 39% above the average of the first two months of the year. The group's Hungarian lending volume fell 47% y-on-y, while in March the group originated nearly as many new mortgage applications in a month as in January-February combined.

In Poland, the last quarter of 2022 was the low point, with all volumes picking up in the first quarter of 2023. Franchised real estate brokerage volumes grew by 11% q-on-q on PLN basis, while own office brokerage volumes jumped 23% q-on-q on PLN basis. Loan intermediation volumes increased by 3% q-on-q on PLN basis. With all three segments showing accelerating growth during the quarter, the Group expects further significant growth from current levels during the year.

After the acquisition of the Italian Hgroup, the new market is the largest credit intermediary within the Group and accounts for 69% of the Group's total volume, with HUF 97.9 billion of loans in the first quarter of 2023. The impact of the rising interest rate environment has not

spared the Italian market, with first quarter volumes of the Group down 14% y-on-y on a euro basis.

According to analysts, the overall Italian mortgage market declined by 25% in February 2023, allowing the Group to increase its market share. The real estate brokerage activity generated commission income of HUF 102 million through its network of 38 offices.