Analysts at Duna House explain this paradoxical phenomenon by two key factors. First, buyers from the upper middle class remain active despite the economic uncertainty. Secondly, there is a technical effect: the overall increase in real estate prices automatically puts more and more transactions in the "above average" category, as the median value of properties sold for the year jumped from 42 to 50 million forints (from 116,000 to 138,000 euros).
At the same time, the threshold of 100 million forints, according to experts, no longer reflects the premium market. The real premium segment starts at 300 million forints (about 828,000 euros), where the number of transactions has not changed over the past six months, and activity has even decreased. The true driver of growth is the upper segment of the middle class.
The government's Otthon Start subsidized mortgage program plays an important role in this dynamic, stimulating purchases of apartments up to 100 million and houses up to 150 million forints. As Peter Sege, chief analyst at Duna House, notes, preferential loans do not distract demand from more expensive housing, but, on the contrary, increase the overall price level, indirectly pushing more transactions above the 100 million mark. The premium segment, unlike the mass segment, is driven solely by wealthy buyers who do not need subsidies.
Geographically, transactions with expensive real estate are still concentrated in the capital and its surroundings: four out of five purchases are in Budapest and Medje Pest. At the same time, the share of the capital is decreasing, and the suburbs are gaining popularity: for example, the city of Erd showed activity comparable to the best areas of Budapest. Debrecen and Pec stand out outside the capital region.
Source: Daily News Hungary
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