Recovering property market in Hungary
By Dr. Beáta Szegi, Kovács Réti Szegheõ Attorneys at Law
Property prices have risen over the past year, with the 2014 increase being the first significant rise since 2008. The national house price index rose by 6.68 per cent (7.42 per cent inflation-adjusted) during 2014, according to the Hungarian Central Statistical Office (KSH). House prices in Budapest superseded the national index, increasing by 6.88 per cent (7.63 per cent inflation-adjusted), although prices remain well below their pre-crisis peak.
Hungary House Price Index increased to 100.80 index points in the first quarter of 2015 from 97.22 index points in the fourth quarter of 2014. The index is reported by the Eurostat which was last updated on 13 July 2015.
Housing transactions were up 17 per cent in 2014, more building permits were issued and there was increased demand for credit, especially for second-hand sales. The recovery is expected to continue during 2015, with 2.7 per cent growth in GDP, coupled with a new state funding programme that was announced by the Hungarian Government with effect from 1 July 2015. The aim of the programme is to disburse non-refundable state funding for families with children to purchase a home. The main development of the new state funding programme is that no distinction is made between new and used properties, and the allowance may also be used for the renovation or expansion of the applicant’s home or house.
The requirements of energy certification rating (A, A+) may positively stimulate the demand side on the new property investment market too.
Dr. Beáta SzegiKovács Réti Szegheõ Attorneys at Law, Budapest, Hungary
T: +361 275 27 85
Kovács Réti Szegheő Attorneys at Law, established in 1992, is one of the oldest independent Hungarian law firms. It is active in Hungarian, English, German and Italian and operates over a wide spectrum within the fields of civil and business law, for both domestic and international clients. Kovács Réti Szegheő Attorneys at Law has gained immersive experience in the fields of corporate law, mergers and acquisitions, construction law, real estate law, securities law, bankruptcy law, labour and employment, competition law and intellectual property law.
Attorney-at-law and senior lawyer Beáta Szegi has more than 15 years’ experience in the property market in Hungary and has recently handled a number of successful investment projects in real estate and construction, mergers and acquisitions (M&A) and project finance. She became a legal expert in European Business Law, in the framework of the ELTE Institute of Postgraduate programme in 2013.
published: October 2015 l Photo: samografy - Fotolia.com