Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Hungary

Hungary

In Hungary, the market segment for Residential Real Estate Transactions market is anticipated to witness a significant increase in transaction value.
It is projected to reach US$11.70bn by the year 2024.
Moreover, this market segment is expected to display a Compound Annual Growth Rate (CAGR 2024-2029) of 2.78%, leading to a market volume of US$13.42bn by 2029.
Despite economic challenges, the Hungarian residential real estate market continues to experience steady growth and high demand.

Key regions: Germany, Europe, Asia, United States, United Kingdom

Market

Region

Region comparison

Currency

Analyst Opinion

The Residential Real Estate Transactions market in Hungary is experiencing significant growth and development due to various factors.

Customer preferences: In Hungary, there is a strong demand for residential properties, particularly in urban areas. Many individuals and families are looking to purchase homes or apartments as a long-term investment or for personal use. The preference for residential properties is driven by the desire for stability and security, as well as the potential for capital appreciation. Additionally, there is a growing trend of younger generations entering the housing market, seeking to establish themselves and build their own homes.

Trends in the market: One of the key trends in the residential real estate market in Hungary is the increase in property prices. This can be attributed to a number of factors, including a shortage of supply in certain areas, strong demand from both local and foreign buyers, and low interest rates. As a result, sellers are able to command higher prices for their properties, leading to a rise in overall property values. Another trend in the market is the growing popularity of new residential developments. Developers are capitalizing on the demand for housing by constructing modern, high-quality properties that cater to the needs and preferences of buyers. These developments often include amenities such as gyms, swimming pools, and green spaces, which are attractive to potential buyers.

Local special circumstances: One of the unique aspects of the residential real estate market in Hungary is the availability of government incentives for homebuyers. The government has implemented various programs to support homeownership, such as providing subsidies for first-time buyers and offering tax breaks for those purchasing new properties. These incentives have contributed to the growth of the market by making it more affordable and accessible for individuals and families to purchase homes.

Underlying macroeconomic factors: The development of the residential real estate market in Hungary is also influenced by underlying macroeconomic factors. The country's strong economic growth, low unemployment rate, and favorable mortgage lending conditions have all contributed to the increased demand for residential properties. Additionally, Hungary's strategic location within Europe and its membership in the European Union have attracted foreign investors, further driving the growth of the market. In conclusion, the Residential Real Estate Transactions market in Hungary is experiencing significant growth and development due to strong customer preferences for residential properties, trends such as increasing property prices and the popularity of new residential developments, local special circumstances including government incentives for homebuyers, and underlying macroeconomic factors such as strong economic growth and favorable lending conditions.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.