March 26th, 2012

Forex loan debacle leaves Hungarian residential property market in tatters

Hungary’s residential real-estate industry ground to a halt after foreign-currency mortgages, which fueled a boom before they were banned in 2010, saddled homeowners with ballooning repayments when the forint sank to a record and prompted buyers to flee the market. The slump in demand forced home construction to fall last year to the lowest level since the government started collecting data in 1930 as Hungarian banks booked hundreds of billions of forint in losses.

  • Mark

    This statement is very outdated. The market has picked up considerably and we as an agency have done as many contracts this quarter as in the whole of 2011.
    The Governmental amnesty to owners of CHF loans in partiucular has stimulated the market and has also enabled bargain hunters to know the bottom of the market was reached around October last year. Prices are not starting to firm and there is now heavy demand. There is a trend towards quality as residential owners predominately prefer a fully finished property ithout any refurbishment needed. Good value properties are selling 5% below sellers prices and older proerties at around 8% below advertised prices.

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