In the second quarter of this year, the analysis of second-hand flats was 6.3 percent cheaper for the year, according to the latest analysis by ingatlan.com, based on its own data and official statistics.

“For the first time in the second quarter of this year, the price of second-hand housing has fallen annually. Demand and supply fell significantly during the worst period of the first wave of the coronavirus epidemic, ”said László Balogh, senior economic expert at ingatlan.com.

The reason for the price drop, Balogh said, was that those who had to sell their property because, for example, they had already found their next home, were forced to drop the price under exit restrictions. Despite the annual drop in prices, second-hand homes were 60 percent more expensive in the second quarter compared to 2015 levels, down 8 percent from the previous quarter. The price of new homes could even rise 1.4 percent year-on-year.

According to data from the commerce portal, from mid-March to the end of April, demand fell between 10 and 40 percent year-on-year, and the number of ads published fell between 10 and 30 percent in those weeks.

In 2021, however, the market may revive as the state housing subsidy system expands with several elements: a 5% reduction in VAT on house construction, the introduction of a state subsidy of up to HUF 3 million pledged for home renovation and tax exemption on flats. all are steps that can help you recover. It is also partly due to these measures that the number of interest in new homes and homes in the first three weeks of October was 40 percent higher than the previous year, Balogh said.

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Despite the 5% VAT, apartments may become more expensive next year


Daczi Dora
Company

It was done as a result of the abolition of preferential VAT and the coronavirus: five years ago it did not issue as few construction permits as in August of this year. The Budapest Development Center has now added more information on the map of the rust zone intended to revive the sector, and a few hours later the Prime Minister announced that the 5% VAT will be general. But how can all this affect the market and prices?

Next year the apartments with reduced VAT will end in Budapest


hvg.hu
Real estate

With the housing market in decline, developers are waiting for the rust zone map.