An increase in demand and a slight rise in prices can be expected in the housing market

Results of the September 2021 housing market survey of GKI and Masterplast 

The fourth wave is not a significant threat either: The survey shows that estate agencies and property owners are more optimistic than last quarter. The national and capital housing index reached its two years peak. The price of previously owned properties may rise by 3-4%, while newly built ones could go up by 7-8% – suggests the survey by GKI and Masterplast. 

GKI quarterly organizes surveys to assess prospects of companies in the real estate industry – 110 companies responded to this questionnaire. The analysis uses the results of representative public opinion surveys (based on 1000 samples). Masterplast Nyrt. supports the survey since January 2020. 

Demand is driven by increasing income levels and the national family-supporting program aiming at families and couples planning to have children. As a result of growing inflation, investors, attention bends towards residential properties. The surveys show that expectations for the next 12 months compared to the last quarter have substantially improved amongst companies in real estate. (The most significant growth can be seen around Pest downtown and Buda green belt areas). We could say the same about Eastern Hungary while expectations increased only slightly in Western-Hungary.  

Public interest in property purchasing and building new homes increased between the low point of the second quarter in 2020 and the first quarter of 2021, but this trend came to a halt in June. The recent survey shows improvement, and the level of interest established six months ago is returning.   

Housing indices reached their low in the second quarter of 2020 and gradually rose. The GKI-Masterplast Budapest housing index (collecting interest of businesses in the real estate industry and the public) increased by 6 in a quarter and by 20 on an annual basis. The national index rose by 4 and 16. Both indices are at their two years peak. 

On a national average, most who responded to the survey (52%) expect an increase, 40% expect a stagnancy, and 8% forecast a decrease in prices for the next 12 months. 70% awaits a rise within Budapest, while 40% predicts a decline. In the countryside majority of people forecast a price decline. In Budapest, a 4-5% increase while in the countryside 2-3% rise should be expected.

People asked about newly built house prices expect a 70% price rise while no one is forecasting a decrease and there is not much difference between regions. Based on the given responses 7-8% increase can be predicted. 

Regarding rental properties, there aren’t any significant changes expected. The majority expects an increase in prices in the capital and predicts stagnancy in the countryside. Following the next 12 months, a 3-4% rise in price is likely.