Demand on the Hungarian residential market has declined following the closure of the Otthon Start subsidised loan scheme. According to data from the Duna House network, the number of property viewings in early November fell by approximately 40% per working day compared with the beginning of October, while the company's demand index was 20–25% lower over the same period.
Transaction volumes in early November returned to roughly the levels seen at the start of October, though apartment sales remained slightly above that benchmark while house sales fell below it. Sellers are offering larger discounts, with the median negotiated reduction reaching 4.8%, up from 4.3% at the beginning of October. Buyers also became more cautious about submitting offers, with the number of purchase offers per working day falling by one third compared with early October.
The data reflects a rush of activity ahead of the 31 October deadline. During the final ten days of October, more than twice as many transactions were concluded per working day as at the start of the month, and buyers submitted one and a half times as many purchase offers. Viewings and the demand index rose by only 12–13%, indicating that most late-October buyers had already selected their properties and simply brought forward their decisions.
"The deadline led many buyers to accelerate their purchases, and those buyers are now absent from the market. Viewing numbers and the demand index suggest there will be fewer transactions in the coming weeks than in October. The Wekerle Plusz scheme is restricted to those under 45 and offers a higher interest rate on used properties than Otthon Start did, so part of the demand may be permanently lost. Young first-time buyers could return once banks complete their transition to the new programme, which may bring some recovery from December," said Péter Szegő, senior analyst at Duna House.
The Wekerle Plusz programme, which replaces Otthon Start, launched on 28 October. It is available only to buyers under 45 and carries a 5% interest rate on used properties, compared with the previous 3% under Otthon Start. Banks are currently in the process of adapting their systems to the new scheme.
