Hungarians have to work a lot for an own property compared to region
November 5th, 2015
Deloitte has published it's study of 17 European real estate markets, among them the Hungarian market. It seems that despite Hungarian estates being cheaper than estates in other countries, Hungarian buyers have to work more to afford a home.
According to the data the opportunity to purchase an apartment is below the European average in the country: on average people have to work for 7.8 years to earn sufficient amount of money for the purchase, while this number is only 7.1 years in the Czech Republic and 7.2 years in Poland.
It is interesting that while Czech estates are the most expensive in the region, looking at the average income it is also the easiest for Czech buyers to get a home of their own.
Overall the market is most favorable in Belgium where people only have to work 3.2 years on average to achieve this goal. The Deloitte study concludes that in more developed countries it is easier to buy an apartment with the exception of the United Kingdom where real estate prices are exceptionally high due to the great demand from foreign workers and investors.
In many countries average prices increased significantly. The highest growth was registered in Ireland (31.7%), followed by Israel (25.6%) and the UK (21.6%). Some countries experienced a drop in prices, most notably Russia where the price of an average estate decreased by 16.6%.
But there are more extreme examples, for example inner London saw an increase of 32%, Dublin 34%. Experts are starting to worry about a possible bubble forming on the UK real estate market.
According to Gábor Kohári, senior manager of advisory at Deloitte's Budapest office one of the main problems on the Hungarian market is that there are not nearly enough newly built estates. Those who want to build new estates have to pay much higher taxes than in other countries of the region. This results in very few new constructions – the number of construction permits issued is still only a fraction of the number that would be considered sufficient to resupply the market.
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