Hungary’s residential property market will continue to stagnate, with significant expansion in neither supply nor demand for the foreseeable future, according to Ákos Murányi, an analyst at agency Duna House, writes inforádió.
Meanwhile, Murányi said that recent changes in regulations regarding home loans will mostly have the effect of making forint-denominated mortgages more dominant. The aim of the regulations was to wean borrowers off of high-risk foreign currency-denominated loans, mostly Swiss frank. Additionally, many would-be buyers are now unable to cobble together the 26% down-payment needed for forint loans, which was earlier subsidized by the state.
According to Murányi, developers from outside the country are exiting the market after suspending their projects, and new developments are unlikely to be launched due to the lack of loans.
As a result, it is unlikely that there will be a shortage in residential units anytime soon, as the market continues to be dominated by oversupply.