Prices that shock buyers are also restraining demand on the market for newly built real estate

While in the case of second-hand apartments, prices have already started to decrease over the past year, this was not the case for newly built apartments. This also contributed to the fact that interest in them decreased significantly, but perhaps the high interest rates caused the biggest problem. How is the new housing market now?

While there was a moderate price drop in used apartments in recent months, in the case of newly built properties there was no drop in prices at all, although these properties did not become more expensive – said Gábor Krausz, the professional manager of Balla Ingatlan’s Siófok office.

As a result of the high prices, the demand for them fell, but the fact that the buyers on credit disappeared among the buyers also contributed to this. Despite this, of course, there was a demand for high-quality, newly built, energy-efficient properties in a good location, equipped with panoramas and extras – such as solar panels, saunas, hot tubs, swimming pools – although the sales time for these has undoubtedly increased – the words of the real estate agent revealed.

Those who chose from the new constructions on the Balaton real estate market could find family houses on the southern shore at a price of 1.5-2 million, while if someone was satisfied with a property located further from the shore, they could also buy at a price of 1.2-1.5 million square meters. Prices were similar on the northern coast, with the exception of Balatonfüred, where they were much higher – added Gábor Krausz.

Regarding Budapest, the V. and XIII. not many people in the district were looking for newly built properties over the past year, the average square meter of which was over HUF 1.5-2 million, and in some cases it even reached HUF 4 million – pointed out Viktória Tóth, Balla Ingatlan V. and XIII . head of the district office. According to his explanation, the extremely high prices are due to the increase in the costs of the construction industry, which was further aggravated by the difficult procurement of raw materials due to the war.

Gergely Garaba, Balla Ingatlan VI., VII., VIII. and IX. the professional manager of his district office has also experienced a significant drop in demand in the market for newly built properties in recent months, so he reported minimal interest, which, according to him, is basically the result of extremely high square meter prices. He also noted, however, that in this segment the constantly rising raw material prices also caused problems.

The demand for new constructions was also very modest in the South Buda region, as the average prices here were also 1.2-1.5 million per square meter, said Csaba Nagy, the regional manager of Balla Ingatlan, who emphasized that in this category the small apartments were the most sought after. This was due to the fact that those interested were looking for a property for a maximum of HUF 60 million, which in the best case meant a newly built apartment of 40-45 square meters.

The market for newly built properties is IV. and XV. in the districts has narrowed significantly in the past year – if only because they are bought on credit in a larger proportion, and the interest rates were high – and investors have suspended construction in many cases – indicated Frigyes Balla, Balla Ingatlan IV. and XV. the professional manager of the district office. He added that those who still stuck to their plans found newly built properties in the districts of North Pest for HUF 1.1-1.3 million per square meter. Frigyes Balla believes that the prospects of the new-build market may have become even worse compared to the used market, since the cut state subsidies have affected this segment more.

The XIV. and XVI. there was not too much demand for new constructions in the districts either – said Tamás Sebestyén, XIV. of Balla Ingatlan. and XVI. the professional manager of the district office, who said that this was understandable from the point of view that the average square meter prices in this segment were around HUF 1.2-1.3 million in the two districts.

Mária Rencsevichs, the Balla Ingatlan XIX., XX. and XXIII. the professional manager of the district office sees that there is a demand for newly built properties, however, according to him, it is typical for buyers that if someone has the price of an average newly built apartment at their disposal, they would rather buy a house for that amount. In the case of newly built residential park apartments, smaller properties cost HUF 1.2 million per square meter in South Pest, while the price of larger apartments starts at HUF 970,000 per square meter – said the expert, who believes that these are acceptable prices, but the number of interested parties is extremely small.

Gabi Marosvölgyi, the professional manager of Balla Ingatlan’s Csepel and Szigetszentmiklós offices, indicated the same in relation to the real estate market of the south-Pest agglomeration, since, as he said, there is practically “zero” demand for newly built properties. He also sees that the prices scare away the buyers. Compared to the real estate offer in Budapest, there is a significant difference in the newly built market of the agglomeration, that the typical offer is not in the form of apartments in condominiums, but in the form of single-family houses, semi-detached houses, terraced houses with a smaller floor area.

The demand for newly built properties in the vicinity of Lake Velence was also quite modest, but the supply also moderated: it was possible to see that those who had started investing last year had finished, but no new ones had been started, or at least it was negligible. their number – said dr. Csaba Kovács, professional manager of Balla Ingatlan’s Agard office. He added that no major changes are expected in this regard until lending begins. It should not be ignored that the real estate market situation that developed after COVID in recent years contributed significantly to the demand in Balaton and Lake Velence, when many people moved to these areas, but this is not expected to happen again, and a wave of sales is not even conceivable.

The article is in Hungarian

Tags: Prices shock buyers restraining demand market newly built real estate


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