The GKI real estate index rose to 4 points in July 2018, while the Budapest index stood at 5 points. The index has increased by nearly 2 points and the Budapest index has gone up by 3 points, compared to the previous survey conducted in April. Both indices have increased by 4 points, compared to one year earlier and reached their historical peaks indicating that real estate market players have never been so optimistic during earlier surveys.
Outlooks on the residential and construction site markets became more favourable compared to the previous survey a quarter ago. The improvement was particularly significant in Budapest agglomeration. There was no meaningful change in non-Budapest market, these expectations still reflects some kind of optimism.
In 1990 Hungary decided to employ the then prevailing model of economic transition from a state run economy to one based on market principles. It entailed mass privatisations of previously state run companies and the opening up of its borders in front of international capital without much mitigation with regards to its destination and long term objectives.
A study by GKI researcher Máté Veres for the Friedrich Ebert Stiftung. Download the study from here.
After nearly one and a half years of almost continuous growth, GKI’s economic sentiment index rose to a new historic peak in February. According to the empirical survey conducted by GKI with the support of the EU, business expectations have never been more favourable than now, and consumer expectations were more favourable only once, during the few months of the Medgyessy government’s 100-day programme in 2002.
The GKI real estate indices for Budapest and Hungary stood at -1 and 1 point in January 2018, respectively. The Budapest index has dropped within the error margin, while the index for the whole country has increased 1 point, compared to the previous survey completed in October. Compared to one year earlier, the index in the capital has decreased 4 points and it has dropped 1 point for the whole country. The real estate outlook in Budapest peaked five quarters ago and a very modest decline is experienced since then. The national index reached its highest point a year ago and the present one is close to it.