The Hungarian property market is set to continue growing in 2018 according to data released by real estate platform Ingatlan.
Hungarian property prices are expected to carry on rising during the year, with the agency estimating apartment prices in the capital Budapest to grow by 5-15 per cent, and single family homes by anywhere between 1 per cent and 20 per cent.
In the countryside, the Hungarian property price increase is forecast to be 5-10 per cent.
In 2017 as a whole, estimated home sales in Hungary amounted to 148,896, up 2.9 per cent year-on-year. Whilst in December property sales were up by 6.04 per cent from the same month in 2016 to 9,787.
This trend is expected to continue in 2018, with the total of property sale and purchase transactions estimated to surpass 160,000 this year.
The completion of new residential buildings is expected reach a peak in 2018, and customer numbers are also forecast to increase until the end of 2019, when VAT on new homes will return to its normal, higher rate.
However, it is possible that the preferential VAT rate on new property may be extended, with Minister for National Economy Mihály Varga stating on public television last week that if the government decides that an extension of the preferential VAT rate on home construction is necessary, it will deal with the matter only in the second half of this year.
Meanwhile, the most expensive piece of real estate put on sale in Hungary last year was a castle on Andrássy út in Budapest, for HUF 5.6 billion, with a living area of 2,200 square metres and 18 bedrooms.
Overseas property investors may wish to look at the Hungarian property market, which has now seen solid growth for a few years. Whether they just wish to invest modestly, or become king of the castle.