anon4357 t1_jacg2i9 wrote on February 28, 2023 at 1:06 PM

Why did house prices increase so much in Hungary in the last 5 years?

bambabimbo t1_jachyf5 wrote on February 28, 2023 at 1:23 PM

If it's weighted with hungarian currency changes , than could be a reason. EUR-HUF went from 315 to 410 in this period. The other countries has much more stable currencies. Even if it's not, the EUR-HUF rising is still an issue: Hungarians got their salaries in forint while foreign investors have USD or EUR, so they practically have a nice 30% discount on the hungarian real estates. Obviously the foreigner investments grew, so the prices too. Also, hungarian goverment implemented a huge family support program,which means government gives a shittone of money to people willing to have 3+ children. We're talking about the price of half of a house. If you give a lot money to people to buy houses, than the demand rises, so will the prices.

BareMetalSkirt t1_jaciszp wrote on February 28, 2023 at 1:30 PM

Local currency, larger inflation than abroad, and lack of new construction due to regulatory minefields. Same as Czechia.

Source: 15 months into obtaining a construction permit for a regular house on my own land. During this time material costs tripled.

Toren6969 t1_jacjhl3 wrote on February 28, 2023 at 1:36 PM

Add investment renting as the taxes for owning (one, but even multiple) houses/realities Is basically nothing, so it was one of the most Safe And solid investments with low interest rates in last decade.

Talking about Czechia.

BareMetalSkirt t1_jackf5b wrote on February 28, 2023 at 1:44 PM

Correct, and since an overwhelming majority of the voter base owns property (~80 % IIRC), property taxes will not increase.

Toren6969 t1_jacku26 wrote on February 28, 2023 at 1:47 PM

Which needs to increase Is the property tax for owning multiple properties, but I'm adraid it would be at this point too late anyway as it will be pushed in big part in already owned properties for rent And without much alternative people Will pay it. Only thing that could imo work would be tax expenses you could write off if you would rent a house for some average rent Price in the Area which would be set up by the municipality.