Residential property market stalled in 2010

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Last year some 90,000 homes were sold in Hungary, the same number as in 2009, the Central Statistics Office (KSH) announced yesterday.

The sale of new homes fell from 8,000 in 2009 to 5,000 in 2010. Home sales fell from their peak of 191,000 in 2007, to 154,000 in 2008.

Home prices dropped 1.4% in 2010, after a sharp decline in 2009. The price decline for newly constructed homes was 6% in 2010.

The real value of homes was 18% lower in 2010 than in 2007, the KSH said.

The average new home cost Ft 16.4 million last year.

The average per m² price was Ft 282,000 nationally and Ft 350,000 in Budapest, where the most expensive homes were in the First, Second, Fifth and Twelfth Districts.

Provincial property prices were highest in Debrecen, Székesfehérvár and Győr.

Rolrox

Factor in all the underwater CHF forint mortgages
and we go from sad to grim.
Tamas Janos Tegla

Certainly… but Hungary tends to find problems and run into brick walls irrespective of the economic climate worldwide.
Real Estate/Ingatlan is slowly picking up (in the provinces, anyway)with buyers attracted by the amazingly low prices with lots of very good deals being struck!
The downside is that if anything appears to be going well the government soon steps in to crush any new growth with hare-brained policies that they learned whilst studying at the Jozsef Stalin school for scoundrels…
Property and land is the safe haven in these troubled times; unless, that is, you want to paper the walls with cash and bonds and/or build a golden roof…tiles are much cheaper!