The national and capital indices have reached their two years peak. Prices of previously-owned houses will rise by 3-6%, while new-build home prices will increase by 7% in the next 12 months – suggests the joint survey of GKI and Masterplast.
GKI organizes surveys every quarter to assess prospects of companies in the housing sector- 108 companies responded to this particular survey. The evaluation includes the representative survey results conducted among the population based on a sample of 1000 people. The survey is carried out by Masterplast Nyrt. since January 2020.
After a drop back in 2020, the pre-owned housing market sector started to recover in 2021. Demand is backed up by rising incomes and benefits to families raising or planning on having children. According to the recent survey results, expectations of companies in the housing business for the next 12 months hardly changed in the last quarter. In Budapest, the outlook concerning prefabricated blocks of flats improved while it declined as to houses. The poll shows no change in expectations regarding non-panel condominiums in Eastern-Hungary, while it presents a decline in terms of houses. Expectations seem more optimistic regarding prefabricated blocks of flats in the Western Hungarian region. Overall we can say that there is excess demand in all regions.
Based on the quarterly and yearly figures, expectations of buying and building seem more optimistic. In December 2021, a total of 95.000 households responded that they would definitely buy or build in the next year, while 224.000 expressed their willingness to do so. (These figures were 74K and 184K in 2021 September and 57K and 184K in December 2020.)
The Housing market indices reached their low in Q2 of 2020, but it has been gradually increasing since then. The results of this recent survey fit into this improving trend. GKI-Masterplast’s capital housing market index (estate agency and population expectations in one) rose by 4 points in one quarter, which means a 24 points increment on an annual basis. The national housing market sector indicator rose by 3 points in one quarter and 23 points in a year. In December 2021, both indices reached their two and a half years peak, and housing market expectations are not much behind the 2019 peak.
Most respondents expect pre-owned property prices to stagnate in Budapest and decline in the countryside. In the capital 3%, in the countryside 4-6% increase is forecasted, where the Western Hungarian region will be the most rapid in the process.
As tonew-build housing market, two-third of respondents expect an increase in sale prices in the upcoming year, and no one assumes a fall. A 7-8% price rise is predicted in the near future.
Based on the majority opinion in Budapest, rental market prices will rise while keeping stagnant in the countryside. For the next year, a 2-3% increase is likely.
Masterplast Nyrt.
Founded in 1997, the Masterplast group is one of the leading building material producer and distributor companies in the Central Eastern European region. The company group owns subsidiaries in 10 countries, and sells products in a further 30 countries. The company is registered in the premium category on the Budapest Stock Exchange, and had revenue of 145,2 million euros in 2023.