The Budapest Property Market Index, a measure of supply and demand on the market as well as market players’ plans and expectations compiled by economic think tank GKI and professional journal Ingatlan es Befektetes, fell to -31.8 points in July from -32.2 points in April, GKI Vice President Laszlo Akar said on Wednesday.
The index was up from a historical low of -33.4 points in July 2009. The index peaked at -10 points in July 2008.
Compared with the survey prepared one quarter earlier, the retail space market index worsened slightly, while expectations on the logistics property market improved. The outlook for the home and office market is effectively unchanged, Mr Akar said.
Prices of resale homes in Budapest are expected to decline further by an average 3.3pc in the next 12 months, while the nationwide average price is expected to fall 4pc, Mr Akar noted. This will also affect the prices of new homes, the GKI vice president said.
Market players only expect to see activity to pick up on the market for warehouse and industrial properties until mid-2011.