This is what the Home Start scheme has done to property supply

Out of the 135,000-plus apartments and houses advertised for sale, 102,000 meet the criteria.

According to these rules, the price per square metre cannot exceed HUF 1.5 million, and the preferential 3% interest rate mortgage may only be applied for apartments costing up to HUF 100 million or houses costing up to HUF 150 million. This means that 75% of the apartments and houses for sale on ingatlan.com, i.e. three out of four residential properties, are eligible for prospective buyers covered by the programme.

Detailed data shows that the proportion is even higher for houses for sale nationwide. Of the more than 82,000 property listings, nearly 69,000 can be purchased with the preferential loan — a rate of over 83%. Of the more than 52,000 apartment listings, nearly two-thirds fall into this category,

according to László Balogh, chief economic expert at ingatlan.com.

Only about 43% of homes in Budapest qualify

In the capital, 40% of apartments are eligible for the Home Start scheme, while 46% of houses meet the conditions for the 3% loan.

The lower percentages in Budapest can be explained by higher prices, as many properties in the capital exceed the price limits of the Home Start programme. In Budapest, for instance, the average price per square metre for apartments for sale is around 1.4 million forints,

added Balogh.  

Serious differences, high ratios

There are significant differences between county seats. In Békéscsaba, coverage is almost complete: all apartments awaiting sale meet the conditions, while the ratio for houses is 96.5%. Thus, in the county seat, the same figure is 98% of the total supply. A similar situation exists in Salgótarján, where 99% of the supply can be included in the programme. Győr also has high rates; for example, 89% of the total supply is 'Home Start'-ready.

The ratios are slightly lower in Szeged, where 83% of residential properties meet the criteria. The average for Szeged is the result of a 91% qualification rate for apartments and a 69% rate for houses for sale. In Veszprém, eight out of ten properties essentially meet the criteria, although the respective figures for houses and apartments are 67% and 93%.

In Debrecen, one of the most expensive county towns in terms of the housing market, 79% of properties would qualify for the scheme. Of these, 86% of apartments can be added to the list for first-time buyers, while only seven out of ten houses are eligible.

According to the expert at ingatlan.com, demand for apartments for sale in Budapest has grown significantly for cheaper properties. In smaller towns, however, buyers can purchase larger properties than originally planned thanks to the 3% interest rate mortgage.

Cover image (for illustration purposes only): Getty Images