Brexit impact on Hungarian property market

Brexit will have no impact on Hungarian Property market

Stock exchanges have suffered some loss after the British have voted to leave the EU but at the moment no impact is expected on the Hungarian property market – says ingatlan.com, Hungary’s largest property website.

At this stage it is hard to predict where exactly Brexit will impact the economy however it is clear that our property market is not affected. Brexit would have a direct impact if mortgages would be financed by British banks or the currency of most mortgages would be GBP (in Hungary it was very popular to take out mortgages in CHF and EUR before 2008 but repayments were done in HUF each month at the actual exchange rate so a weakening HUF had negative impact on all mortgage holders). Also there would only be an affect on the demand if most buyers came from the UK but this is not the case.

The weakening pound could have a small indirect impact on tourism (less tourists from Britain), or if other countries Central Banks (e.g. FED) increased the interest rate which would make some investors think of reducing their property portfolio and look for alternative investments for higher profit. At the moment none of these look to have any serious effect on the Hungarian property market.

 

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