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2024-11-22
Early Loan Repayments Surge – Do Hungarians Have Enough Savings?
The Hungarian National Bank (MNB) reports that housing price increases will likely continue, outpacing the EU average. Factors like home creation subsidies, favorable loan conditions, and household savings in government bonds are boosting the housing market.
In 2024, rising employment and wages, alongside decreasing inflation, helped drive consumer confidence and housing demand. The MNB forecasts demand will rise further as savings enter the housing market.
State Housing Support at a Low – Not Helping the Needy
Prices Above EU Average
In Q3 2024, housing activity increased 16% nationwide and 31% in Budapest, with 144,000 transactions, 10% below the long-term average. Price increases continued in Q2, with 9.3% growth in Budapest and 8.7% in other cities.
MNB expects housing prices to keep rising in Q4, with a 14.7% increase in Budapest.
Housing Market Poised for Growth – Awaiting Government Action
Prices are rising and could surge next year.
New Housing Support Soon
Under-35s can access nearly 2 million HUF. Price increases could reach 11.4% in 2024.
CSOK Plus Grows, But Fewer Beneficiaries
Housing loan demand surged by 148% in 2024, driven by CSOK Plus. The number of eligible beneficiaries will decrease by a third in 2024.
Weak Housing Construction
In 2024, 8,600 new homes received occupancy permits, down 20%. Housing construction is expected to remain slow into 2025.
Savings May Flood the Market
The central bank expects significant savings to enter the housing market in 2025. Voluntary pension savings will be tax-free for housing purchases, with around 300 billion HUF expected to flow into the market.
