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Nov 17, 2016

Hungary house prices set to rise

Hungarian home prices have not dropped and no such tendency is foreseen, while loans for home purchases could see an expansion

House prices in Hungary are set to rise, according to a report by the Budapest Business Journal today.

Real estate agency Otthon Centrum has concluded that Hungarian home prices have not dropped and no such tendency is foreseen, while loans for home purchases could see an expansion.

The third quarter of the year saw prices growing in almost all segments of the housing market, precisely in the areas where the most sales are being made: in the capital, its agglomeration, regional centers, county centers and cities with county rights, according to the analysis of Otthon Centrum. 

BBJ reports that Otthon Centrum also expects an expansion in loans provided for home purchases, this further strengthens its forecast for the prices of homes not to drop in the foreseeable future, according to the analysis.

Furthermore, the growth in Hungary is seen as outstanding in Europe, as together with Latvia, Hungary has seen the highest price increase in the second quarter of the year, compared to the corresponding quarter a year earlier, according to Otthon Centrum.

At the same time, with an average price of 1,500-2,000 euros per square meter, Budapest is still cheaper than Warsaw, Prague, Bratislava and Zagreb.