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Central Bank: Housing Price Growth “Not Excessive”

Housing prices in Hungary have rose by a stunning 21% in  2014 and 2015, much faster than the neighborhing countries, but according a report published by the Hungarian National Bank, this is not excessive growth. 

Central Bank: Housing Price Growth “Not Excessive”

The bank said this dynamic growth is partly due to the fact that Hungary experienced the steepest drop in housing prices  in the region at the 2008 financial crisis.

"Overall, we view the recovery on the housing market as favourable. The dynamic growth of house prices and the expansion of the volume of new housing loans are not considered to be excessive, thus the current risk level is low," said the Central Bank.

 

Hungarian house prices jumped by a total 21 percent in the period from January 2014 to September 2015, compared with rises of 7.2 percent in Slovakia, 6.9 percent in the Czech Republic and 3.1 percent in Poland. In 2007 more than 35,000 new flats were built in Hungary but this had plunged to around 7,000 by 2013. The central bank expects nearly 20,000 new flats to be built in 2017.

 

 

Sources:

http://hungarytoday.hu/news/hungarys-housing-market-back-track-7-years-financial-crisis-10778

http://realty.economictimes.indiatimes.com/news/industry/hungarian-central-bank-says-housing-price-growth-not-excessive/52077088

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