High Prices, Interest Rates Stifle Construction Demand
The decline in the housing construction market intensified in the third quarter, Gábor Kiss, vice-president of the Real Estate Developers' Round Association (IFK), managing director of Metrodom Építő and Metrodom Kivitelező Kft., told business daily Világgazdaság.
According to Kiss, high prices and high loan interest rates together have stifled demand.
The negative indicators from the first half of the year are reflected in the aggregated statistics of the first nine months, according to which 21% fewer residential properties were completed and 43% fewer are planned to be built.
According to market players, the big question is whether this is the bottom of the descent and the rise begins, or whether demand and supply are hibernating at a low level.
Fuel Prices Move Closer to Avg of Neighboring Countries
EC Reconsiders Some CAP Provisions
Living's Kassák Terrace and Park West 3 Classified as Brownf...
Aldi Opening Biggest Store in Budapest
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
