GKI report on the situation of the Hungarian real estate market

GKI’sApril market analysis notes, that the real estate sector is clearly one of the biggest losers of the financial-economic crisis.

Assessment of the housing situation in 2008 is steadily deteriorating since July. A significant oversupply indicates the property market in all segments. It’s hardly to expect the rapid improvement of the situation: Next year's expectations are obsured. During the first quarter of 2009, 6616 flats were handed over which is a 14.5 percent increase compared to the same period of the previous year. The number of new building permissions decreased with 7 percent compared to the previous year's first quarter. But there’s nationally significant difference: 10 per cent growth in Budapest, while 15-25 per cent reduction in rural areas.