telex 2 February 2025
Prices have skyrocketed, advertised properties are selling within days, buyers are bidding against each other and offering prices that are millions of forints higher than the asking price.
The price increase began in January 2024 and accelerated in the summer because 2023 was a sluggish year for the property market, partly due to high inflation and because many people preferred to save, for example by buying government bonds with favourable interest rates. However, inflation fell in 2024, reviving demand, which began to catch up with supply, which in turn began to shrink.
Prices also rose because the market began to price in expected demand for 2025.
The high demand that has been stimulating the property market is likely to subside in the first half of the year, but prices are not expected to fall.