Hungary's disastrous slump continues; buyers shift to old flats
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Hungary’s housing market is still depressed, after four years of house price falls. The nationwide house price index dropped 8.17% in Q1 2013 (-10.83% inflation-adjusted) y-o-y, according to FHB Bank. House prices in the capital Budapest have dropped 8.19% (-9.83% inflation-adjusted) y-o-y, according to BIS.
Construction, building permits, mortgage lending, and prices are at catastrophically low levels compared to the height of the boom. Bad loans are high. Newbuild construction hardly exists; buyers are choosing used properties instead. However there are some signs of recovery: GDP is likely to rise 2.5% this year, and rents are rising.
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