Real Estate Market to See Strong End to the Year

Experts expect a strong end to the year on the real estate market, with the 9,754 transactions estimated by the real estate brokerage firm Duna House for September exceeding the previous month's value by 4.8% and the year-earlier value by 20.9%, the company told MTI on Monday.

Duna House estimates that 92,000 transactions have been completed so far in 2024, so the market is expected to close the year around the middle of the forecast 110-130 thousand range.

According to data from Credipass, the group's international financial brand, the mortgage market in Hungary saw HUF 112 billion in mortgage loans in September. They added that in the third quarter, the highest proportion of mortgages signed in the whole country was for amounts above HUF 20 million.

With the exception of East-Hungary, the average loan size decreased nationwide compared to the previous quarter. In the East, the average loan size increased to HUF 22.4 million, after a significant increase, while in the West the average loan size fell below HUF 20 million. The average loan size among borrowers in Budapest was HUF 26.6 million.

Across the country, the share of loans with 20-year maturities was the highest again this year, the company said, adding that the share of more predictable loans with fixed interest rates for at least 10 years increased everywhere except in Eastern Hungary.

The statement added that the XIII district continued to welcome buyers looking for new-build homes with over 7,000 homes in the last quarter. District XI was also a sought-after location, with around 4,000 new homes to choose from.

In four districts (I, II, VI and XII) the average price per square meter of new homes exceeded HUF 2 million, while in District VI and District II, new homes are already being offered at prices above HUF 3 million. The average price per square meter of newly-built apartments in the capital has reached nearly HUF 1.5 million in the third quarter of 2024, according to Duna House.