Hungary's property market continues to improve

Property throughout Hungary, especially in Budapest, has become more desirable to locals and investors

Hungary’s property market is likely to be “exceptionally vigorous” in the coming months as demand increases.

According to ingatlan.com, property throughout Hungary, especially in Budapest, is to become more desirable to locals and investors in future.

László Balogh, a state secretary for the finance ministry, told current affairs channel M1 that demand in the first half of 2018 had already been strong, and the number of people seeking out property deals increased from an annual 15 percent in July, to 20 percent in August, and by 40 percent in September.

Balogh said demand is likely to increase over the coming months before preferential VAT rates on properties are abolished.

The secretary added that changing rules that strengthen safe borrowing are also coming into effect. From Monday onwards rules on mortgage interest rates will be more predictable.

We revealed in August how property prices are continuing to rise in Hungary, especially in the capital Budapest.

Official figures show that the average price per square meter in Budapest exceeded 600,000 HUF (1,857 EUR) in mid-August, up 20 percent on the same month in 2017.

Districts 5, 6, 1, 2 and 12 are the most affluent areas in Budapest, where properties regularly sell for over 1 million HUF per square meter.