The real estate market has also started to reorganize in the premium segment: while the share of foreign investors has decreased in the capital and the agglomeration, luxury properties on Lake Balaton are still attractive to buyers from abroad, according to an analysis by the real estate agency Duna House.
According to the company, demand has shifted towards properties with the most modern technical parameters, while more and more properties built with outdated technology, but still belonging to the premium category due to their size, for example, are waiting for a new owner. For owners of hard-to-sell properties in need of major refurbishment, the analysis suggests that renting may be a profitable option in the changing economic environment.
The publication quotes Károly Benedikt, head of PR and analysis at Duna House, who said that "based on the network's experience, the luxury property market is a broad one, ranging from modern new builds to second-hand properties built within five years, equipped with modern technologies such as solar panels and heat pumps, to older, less energy-efficient homes with less technical equipment, which are at the premium end of the market mainly because of their size and prime location.
He added that forward-thinking owners have invested heavily in renovating luxury homes built between 10 and 30 years ago with outdated mechanicals long before they came on the market, but there are still some buildings in the premium category that are either poorly insulated or require major renovation to replace the existing boiler with an energy-efficient heat pump.
According to the information, the company's experts specializing in premium properties have reported an increasing number of sales orders in the capital and the agglomeration, as well as in the Lake Balaton area. While supply is expected to continue to expand, owners should be prepared for properties in need of major renovation to be clearly sidelined in the changing market environment. Uncertainty, declining demand, the associated increased selling time and inflation may result in sales orders being converted into rentals. As an example, they said that since a property in the metropolitan agglomeration, worth HUF 250 million, which had been looking for a new owner for several years, was transferred from the sale to the rental market, it has been generating HUF 1 million per month for its owner.
The market for luxury properties in Budapest and the agglomeration has seen a significant drop in the number of foreign buyers during the epidemic period, so, now it is mainly Hungarians who are looking for premium properties for their own use. On the other hand, German and Swiss interest is still noticeable in the Balaton region, and an increasing number of British, Belgian and Dutch buyers are joining the ranks of nations investing in Hungarian luxury properties, they wrote, adding that on the shores of Lake Balaton and its surrounding areas, properties with 3-4 rooms and not too large floor space are still in demand.
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