In the first six months of this year, a significant proportion of real estate buyers continued to achieve their housing goals through external financing—typically bank loans—while the amounts of loans requested also rose significantly. The consistent observations of Capybara Homes’ experts highlight that the majority of transactions were driven by subsidized programs, while prospective buyers reliant on conventional market loans found themselves in an increasingly bleak situation amid soaring real estate prices.
A Lifeline for the Market: Otthon Start's Dominance
In the first half of the year, transaction volumes remained fairly modest. An expert from Capybara Homes pointed out that momentum was sustained almost exclusively by the Otthon Start program, although its driving force had already fallen short of the initial euphoria experienced at its launch. Had this government incentive not been in place, the sector would have faced serious difficulties. About 60 to 70 percent of buyers relied on this subsidized loan. Market-based loans were taken out only rarely; this was most common among those who were ineligible for the preferential options because they already owned a property.
In certain regions, two-thirds of buyers sought bank financing. Since prices rose by more than 20 percent last year, the amounts of loans taken out also reflected this higher price level. The Otthon Start program proved so attractive that nearly all eligible applicants took advantage of it. In fact, based on experience, even customers with significant down payments—some of whom could have paid in cash—took out the subsidy simply because they considered the extremely favorable interest rates too advantageous to pass up.
A Divided Market: The Struggle of Those Left Behind
The lower and middle price segments—that is, the range between 40 and 100 million forints—were clearly driven by the Otthon Start program and other family support measures. A similar trend emerged in the inner districts: 80 percent of buyers financed their new homes with loans, predominantly from this subsidized source. In these areas, the average loan amount was around 30–35 million forints in the first half of the year.
At the same time, the proportion of people who were no longer eligible for subsidies and had to rely on market-rate loans decreased dramatically. Caught between higher interest rates and astronomical real estate prices, they reached the limits of their ability to pay. As a result, more and more people have opted to wait it out or have tried to take a much more aggressive bargaining stance with sellers.
Young People in the Crosshairs and Rising Indebtedness
The most active group of buyers consisted of young married couples and single young adults, who sought to take full advantage of the entire range of available subsidies (Otthon Start, CSOK Plusz, Babaváró loan). Fearing potential political or legislative changes—or the possible discontinuation of the program—many chose to bring forward their purchases.
In the outlying districts and the metropolitan area, buyers often entered into real estate transactions with only 10–20 percent of the purchase price as down payment. As a direct result, they had to take out loans averaging 35–50 million forints to purchase a home.
When the Administration Shatters Dreams
However, despite the tremendous enthusiasm, experts at Capybara Homes also pointed out that in certain cases, transactions fell through due to the strict set of conditions. Sometimes it was the applicant themselves, and other times the selected property that did not meet the legal criteria. A typical stumbling block, for example, was the case of apartments held in undivided joint ownership without a co-ownership agreement. Under the regulations, Otthon Start loans could not be disbursed for properties with this legal status, which prevented several transactions from taking place.
Summary: Where Is the Market Headed, and What Can Buyers Do?
It is therefore clear that in the first half of this year, government subsidies and preferential loans—particularly the Otthon Start Program—were the main drivers of the real estate market. Due to the dual pressure of high prices and market interest rates, careful planning and assessing one’s financial situation are now more important than ever. Anyone considering a real estate purchase must stay up to date on legal requirements and carefully consider their financing strategy. In this volatile and complex market environment, guidance from a knowledgeable professional can literally mean millions. The experts at Capybara Homes constantly monitor the latest trends and regulatory changes to help you navigate the maze and ensure that: the purchase of a new home is not just an uncertain dream built on a loan, but a successful, smooth, and secure investment.