First-time homebuyers become more active in Hungary, their share has doubled
The announcement of the changes to home purchase subsidies had a significant impact on the housing market last year, with weak demand turning into increased interest at the end of the year. And the clarification of the detailed rules encouraged buyers who were left out of the new subsidy scheme to act before 2023, so the segment was on an upward trajectory in terms of transaction numbers by the end of the year, said Károly Benedikt, head of PR and analysis at Duna House.
The real trend reversal for the market came at the beginning of this year.
Starting from January 2024, the CSOK Plus option is encouraging young couples to acquire their first property with unprecedented preferential support conditions, partial debt relief, full exemption from fees and only 10% co-payment.
There is a steady increase in interest from customers in the benefits of the updated home purchase scheme. Among the loan transactions mediated by the network, the share of CSOK Plus was nearly 17% nationwide and more than 14% in Budapest, the expert added.
According to the real estate brokerage's data, the share of first-time homebuyers among transactions in the capital almost doubled to 26% in March this year compared to the same period last year.
Based on quarterly data, the activity of buyers also reached 25%, who spent HUF 42.5 million on property purchases this year, 1% less than last year's average. However, in 2024, the almost identical amount was only enough to buy a property with an average floor area of 51 square metres in Budapest, which is 4 square metres less than a year earlier.
Most first-time buyers signed a contract in the capital. In Budapest, brick buildings (65%) were the preferred choice for first-time buyers, with an average property value of HUF 43.2 million needed to buy a 49 sqm brick apartment in the capital in Q1 2024.
Those who insisted on a Budapest location, but started the home-buying process with less money, could get a 55-square-metre apartment in a tower block in the capital for up to HUF 39.9 million, based on quarterly averages.
Pest County was also the preferred location for first home purchases, with buyers spending an average of HUF 43.3 million on their first property, for which they were able to buy homes of 88 square metres.
In rural areas, Bács-Kiskun County attracted the most first-time homebuyers, with 8% of those signing a contract for this purpose nationally buying an average of 77 square metres of property, representing an expenditure of HUF 29.4 million.
Looking at the age range of buyers, the picture is mixed, ranging from under 20s to over 60s. The highest proportions of those buying their first home in Q1 2024 were 24-24% under 20 and 30-40.
While CSOK Plus is a significant help in the home-buying process, it is not only the new beneficiaries who are in a better position - as the age distribution data attest -, as the improving economic situation and the decreasing interest rates also help the entry of those who are not eligible for CSOK Plus into the market this year, added Károly Benedikt.
Cover photo: Getty Images
