Modern Apartments Are In Demand In Budapest

Newly built flats are spectacularly absent from the Hungarian market – while there is great demand, still very few newly built apartments are introduced every year since the crisis. But the freshly published Budapest Housing Market Report suggests that coming years will be all different.

Eltinga, Ecorys and FHB compiled the report together. Data suggests that stabilizing macroeconomic environment will provide a good foundation for the construction industry.

But there is another important segment in the market which will play a great role in the coming decade: apartments which were built in the previous one, between 2000 and 2011. These are often of higher quality than apartments currently under construction.

Novel apartments hold their prices very well in the 8th, 9th, 13th and 14th districts where most of them were built – they are in fact closer to newly built flats than older ones. It is clear from the tendencies that apartments which were built a few years ago are equally popular and valued as newly built ones.

This is a fortunate trend for the neighborhoods: modern and more expensive apartments usually reside in areas being rehabilitated by the city with new public transport lines, new stores, renovated streets and cleaner streets.

Based on the needs of those who buy or rent these novel apartments constructors of new apartments can also acquire valuable information. They can plan ahead and built the new flats the way that the target audience prefers it, attracting customers.

The report concludes that novel and newly built apartments compete with and support each other on the market at the same time. Developers therefore must look at flats constructed in the past decade and their residents to be able to serve the needs of their market better.

(Source: http://www.portfolio.hu/ingatlan/lakas/igy_meg_nem_lattad_a_budapesti_lakaspiacot.1.222615.html)