“Real estate behaves like any other product: it is expensive when there is strong purchasing demand,” emphasized Géza Sebestyén, head of the MCC Economic Policy Workshop, during his November lecture in Debrecen.
The expert discussed changes in the real estate market, highlighting that the significant price increase over the past ten years was partly due to the market being at a low point around 2012–13, following the collapse of foreign currency loans. However, the price growth is good news for those living in their own or family homes, as well as for those who are expected to inherit property in the near future.
Sebestyén explained that real estate prices act like a thermometer: they are influenced by inflation, the state of the economy, GDP growth rate, wages and employment levels, interest rates, and the availability (or lack) of favorable loan schemes.
The economist also stressed that it is not true that government support programs worsen homebuyers’ situation. Programs such as CSOK, the Babaváró support, and Otthon Start all assist Hungarian families, while loan costs effectively align with inflation.
