Otthon Centrum Sees New Home Prices Rising in Line With Inflation

Hungarian real estate company Otthon Centrum projects the price of new homes in Hungary will increase about 7 percent in 2008.

The increase is in level with the rate of inflation, but it still sees prices of both new and resale homes doubling in ten years, analyst David Valko said at a press conference on September 3rd 2008.

About 11,200 new homes will be completed in Budapest by year-end. Demand for resale homes is expected to fall 5-10 percent during the year. 

Prices for resale homes in brick buildings averaged HUF 269,000 per square meter (EUR 1125.5) in the first half of the year. The price for free-standing resale homes was HUF 197,000 per square meter (EUR 824).

News Monitoring