Number of property transactions and new construction projects expected to plummet in Hungary

2012-01-06



On the Hungarian property market, the number of concluded home sale transactions in 2011 was 80,500 in total, a 10% reduction in comparison with both the 2009 and 2010 averages. In comparison with the period prior to the economic crisis, the reduction is estimated to be 30%, according to an analysis carried out by the Hungarian Property Association. Furthermore, the number of transactions in 2012 is forecast to be only 70,000.
The number of new homes is also expected to fall in 2012 in comparison with previous years. In 2011, the number fell just below 20,000 and in 2012, based on an analysis of the number of building permits, it is expected to be around 10,000.
Reductions are also expected in the numbers of sales and new construction projects involving both office and industrial properties, according to the analysis.
In 2011, 94,000 m² of office space were handed over in the country, in comparison with more than 150,000 m² in 2010, and the occupancy rate of this subdivision of the market is currently 80%. In 2012, only 15,000 m² of new office space will be delivered. For the industrial space market, the number of vacant properties is double the Central European average of 22%.