Indotek Group has announced plans to build thousands of new homes in Budapest at prices more favourable than panel flats, including projects in districts XI and XV. The company expects that the new targeted apartment supply will have a price-reducing rather than price-inflating effect, contrary to some market fears.
The group believes that a significant expansion of supply will ease pressure on property prices, which could have a positive impact on the entire housing market. The model is based on connecting the framework offered by the Home Start Programme with market logic, as well as close cooperation with municipal and district governments, said István Hüse, property development director.
The announcement comes in a market environment where persistently high Budapest housing prices pose serious challenges for buyers, while property developers widely believe that affordable, quality new homes cannot be built at current cost levels.
Contrary to market opinion, the company wants to prove with a new model based on partnership with municipal and district governments, following the example of Vienna's Aspern Seestadt, that it is possible to build affordable, quality apartments even at current cost levels. As one of Europe's largest urban developments at 240 hectares, the Vienna project is not just a residential park but a complex ecosystem treated as a "city of the future".
"In district XI, we are planning to launch several projects soon, where the vast majority of apartments will be offered below €3,750 per sqm," Hüse added.
