Total Area: 93,032 km²
GDP (in billion USD): 140
Hungary is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine, and Romania to the east, Serbia and Croatia to the south.
Hungary's housing market is still depressed, after four years of house price falls. The nationwide house price index dropped by 2.2% in 2012 (-7.4% inflation-adjusted), according to the FHB Bank. Second-hand dwelling prices fell 10.2% in 2012 (-14.8% inflation-adjusted), the biggest decline since Q4 2010, according to the Hungarian Central Statistical Office (KSH).
In contrast, the primary housing market showed remarkable improvement, with new dwelling prices rising 7.4% in 2012 (1.9% inflation-adjusted), the first year-on-year increase since Q2 2009.
Construction remains very weak in 2013. Residential permits plunged 36.6% to just 493 in the first two months, compared to the same period last year. In 2012 the number of new residential building permits issued dropped 12%, to 6,099. The number of dwellings built also fell 16.6% to 10,560.
The mortgage market is very tight, with lending conditions punitive. New housing credits were down a stunning 54.6% in H2 2012, as compared to H2 2011, with only HUF61.76 billion (US$270 million) approved. Total outstanding housing credits fell by 16.9% in 2H of 2012, compared to last year.