Tourism has come to a halt and the credit moratorium has partially ended by the end of the year, so its owners may try to salt an apartment bought on many investment loans.

The transformation and expansion of the supply may come in the second-hand housing market, on the one hand due to the epidemic in the rental market, and on the other hand due to the partial expiration of the credit moratorium. In the last year or two, buyers for investment purposes, in part mortgage loans, can sell their property after the expiration of the credit default: the latest analysis from ingatlan.com shows that the average price per square meter of apartments in Budapest is based on more than 100,000 housing advertisements.

In 2018 and the first half of 2019, a part of the investment buyers financed the purchase of a house with mortgage loans and paid the share of the expenditure, mainly short-term housing expenditure for tourists, that is, income from housing hotels . However, due to the epidemic, the number of tourists visiting Budapest was reduced to a fraction, so a significant part of the flats in question are unoccupied or rented for a longer period of time. However, due to the increase in supply, apartment prices have also fallen by 10-15 percent since March. For affected investors, the introduction of a blanket credit moratorium in March still gave them a slight delay.

“However, some investors will not be eligible for an extension of the moratorium, so since they have no or much lower income from renting the apartment, they may have to put it online for sale. With lower income, they are not entirely sure that the math will come out if the fees have to be paid again, ”said László Balogh, senior economic expert at ingatlan.com.

In recent years, 30 percent of buyers in the capital have bought real estate for investment purposes, so ingatlan.com estimates that there may be between 4 and 5 thousand apartments where home sales can occur. This amount can represent between 10 and 12 percent of the annual sales turnover in Budapest. According to László Balogh, those who have started a home savings fund plan in the last 3-4 years in addition to buying a home for investment purposes from a loan may also be forced to act. After the state-subsidized savings period ended, they planned to reduce the outstanding debt on the mortgage loan from the accumulated amount, thereby reducing expenses.

According to data from ingatlan.com, at the end of September the average price per square meter of used apartments in Budapest put up for sale was 715,000 HUF. This means that half of the advertised apartments were offered at lower prices and the other half at higher prices. This represents a 1 percent increase, which is essentially stagnant on an annual basis. A VII. The average price per square meter in the district is 813 thousand florins, 4 percent lower than the previous year. According to the expert, if many people choose to sell, it could generate a wave in the central districts that could result in lower prices even when ringing in the outer districts.



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