Astonishingly Many Flats Builds for Sale in Budapest
The last time when more home building permits were issued than last year was in 2005. In 2017, around 14.6 thousand new properties were given a green light, an annual increase of 56 percent. The number of usage licenses is also high, nearly three thousand real estates have been granted official licenses. However, considering that many projects are being built and handed over, we can expect even more from the real estate market of Budapest this year.
According to data, in 2018 it is expected that 9.000 apartment blocks will be completed in Budapest, which is double the amount of last year. "The most popular district of such is District 13.: this district has plans for 2400 flats. On the second place there is District 9 where 1300 new properties are going to be located." said Dávid Valkó, senior analyst at OTP Real Estate.
In many cases the question arises as to how long this good series can be held? For now, the 9-year record for the current performance has been down, and analysts say that in 2019 the probability is likely to persist. However, many people are afraid of the next year, as the benefits planned from 2016 in four years (such as the favorable VAT for new homes) will expire, and are certainly not prolonged. As far as the distant future is concerned, a possible downturn may not occur at the earliest only between 2021 and 2022 due to the "inertia" of the market.
The good news though is that there is a lot of development potential in Budapest. There are currently 72 investments in the OTP database, the construction of which has already been announced or confirmed by a board of directors. These are a total of 14,000 new apartments on the Budapest market.