Office space prices are likewise low, consultants say, with prices of newly built offices likely to grow 2% and prices of used ones seen stagnating. Price of new retail property is expected to rise 3%, with used retail space is forecast to become 4% more expensive. Prices of warehouse properties are also seen as posting relatively low gains at 4% for new warehouses and 2% for used ones. Price increase of building plots is expected to be the highest at 6%.
Real estate developers and consultants in Q1 2005 were generally skeptical of the market, due to a fall of demand and a saturating real estate market.
Thanks to a spectacular growth in the real estate market, which lasted until the beginning of 2004, a number of companies had added construction and real estate to the portfolio of their activities, boosting the number of players on Hungary’s real estate market. While competition has intensified and demand has fallen, many developers carry on with their residential projects, expecting that the fall will not hit them. The number of new homes being built has not changed from previous times when demand was stronger then currently.
As a result of the changes, the sales period of newly built properties has become longer, with the necessary spending on marketing having doubled.
Property Boom Comes To Halt
Utolsó frissítés:
Real estate consultants forecast price of residential properties to rise 2% in the case of newly built homes and 1% in the case of used homes. They cite a sudden fall in demand and a saturated market as reasons behind the halt in residential property prices.