Property Fair In Hungary Faces Up To Hard Times
- 8 Mar 2012 12:00 AM
"Property market participants called for more government action to stimulate the stalled residential market, before the opening of the annual Property Fair at the Hungexpo exhibition centre. The government needs to raise interest subsidies on home loans to 4-5% from 3% and introduce a new non-refundable scheme for renovations or for the purchase of existing homes, said Gergely Karoly, chairman and CEO of home purchase savings fund Fundamenta-Lakaskassza.
Karoly also heads a consultative body for the government on home creation.
The property market can not bounce back without government help, continued Laszlo Borsi, who heads the media division of fair organiser Lakasvasar.
The government revived grants for new home purchases for families but only Ft 6 billion is earmarked for this year, compared with Ft 200 billion at its peak, he noted.
Borsi said state-subsidised home loans can restart within a month, after approval from the EU.
Home prices in the Ft 80-100 million range dropped by as much as 40-50% due to the early mortgage repayment scheme, he added.
Borsi expects 50 or more exhibitors at this year’s fair, compared to 100 in 2010 and 180 in 2008."
Source: Hungary Around the Clock
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