Duna House Barometer 43Th Issue

Duna House Barometer 43th issue

Second Half of year 2014 And Month of December 2014 DUNA HOUSE BAROMETER

Contents:

Executive Summary Page 3

Transaction number and Demand index Page 4

Flat Index - Consolidated Page 5

Flat Index - Regional Page 6

Brick Flats Data – Second Half of the year 2014 Page 7

Panel Flats Data – Second Half of the Year 2014 Page 8

Flat Price Data December, Quality preference Second half of the year 2014 Page 9

Customer interest for the Districts, bargain (December) Page 10

Bargain rates broken down by Counties/ Districts (half year data) Page 11

Customer Profile: Buyers Page 12

Customer Profile: Sellers Page 13

Transaction Parameters in Budapest Page 14

Transaction Parameters in the Counties Page 15

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Executive Summary

The sales volume was surprisingly high in December: nearly 10 thousand real estate sales took place. The last month of the year usually has a low closing value, and the 9855 real estate transactions were well beyond expectations, compared to December 2013, when only 5768 real estate transactions were registered. There were a total of 105901 real estate sales in 2014 according to Duna House estimates. This is the first year since the crisis when total sale numbers go over 100 thousand. The past five years’ average (2009 - 2013) was around 89 thousand and it was surpassed in 2014 by more than 15%. As expected, December had the lowest sales volume for the year, but the 53 percentage point value was significantly higher compared to 46 points in December 2013 and 47 points in 2012 on the Demand Index.

There was a continuous increase in the Nationwide Price Index during the last quarter of the year, surpassing the 1 percentage point increase during the previous two quarters and hitting 2 point high this quarter. According to the nationwide data the price of panel flats increased from the 76 percentage point in 2013, proceeding last year’s price increase and closing the price gap between brick flats and panel flats. The brick flats are at 85 points for the past three quarters, the panel flats dramatically increased 3 and then 5 points thus reaching 86 percentage points. The provincial price index shows that the panel flat prices increased significantly, from 84 points to 90, in Eastern Hungary. In the same region the price of brick flats stays at 80 percentage points, stagnating with small variances at this level since 2010. The price index of both apartment types decreased slightly in Western Hungary, this slow decline being a trend since 2009 in this region, despite of the positive data from Győr-Moson-Sopron County. The capital city has the most impressive price index: the Panel Index leaped to 96 percentage points and the Brick Flat Index to 99 points. This means the flats in Budapest were sold at the 2008, pre-crisis price. The panel index started from an extremely low 77 points and it reached the present level in just a year. The brick flat price index was rarely lower than 90 points, 93 points mid-year, and leaped to the impressive 99 points by the end of 2014.

According to the provincial data the highest price for brick flats was paid Győr-Moson-Sopron County where the buyers paid 281 thousand HUF per square meter, almost as much as in the capital city. The runner-up is Hajdú-Bihar County with an average of 242 HUF/m2. At the bottom of the list, there are Tolna and Borsod - Abaúj- Zemplén Counties, where the average price was under 100 thousand HUF/m2. The same type of apartments were sold at 421 thousand HUF/m2 in the 5th District followed by the eastern Buda territories. The 10th, 11th and 20th District had brick flats priced under 200 thousand HUF/m2.

Győr-Moson-Sopron County had the highest average for panel flats also, the 225 thousand HUF paid per square meters surpassing the capital city’s average price by 6 thousand HUF. These regions were followed by Hajdú-Bihar County with an average of 164 thousand HUF/m2. At the bottom of the list there is Borsod - Abaúj- Zemplén County with an average of 90 thousand HUF/m2 and Tolna County with an average of 84 thousand HUF/m2 according to data acquired in the second half of 2014. The 11th District was the most expensive in Budapest for this type of apartment; averaging 247 HUF/m2 followed by the 13th District with 226 thousand HUF/m2 and the 16th with 208 thousand HUF/m2. The popular 14th District comes next where buyers paid 205 thousand HUF/m2 for panel flats. The remainder of districts had an average less than 200 thousand HUF/m2. The 18th District is at the bottom of the list with 156 thousand HUF/m2.

Buyers in Jász-Nagykun-Szolnok had the most room for bargaining in the second half of 2014, an average of 12%. At 9% the bargaining percentage was high in Heves and Békés Counties also. Buyers in Hajdú-Bihar and Győr-Moson-Sopron counties had the least room for bargaining, only 5%. Additionally, a 2% price correction was sufficient to increase potential buyer’s interest. Budapest had higher bargain percentage in the southern districts, an average of 7% as in the 5th District where buyers could bargain more for the pricier apartments. Buyers in the 7th District had the least bargain room, only 3%.

Comparing the second half of 2013 and 2014 we can see that there was a higher demand for expensive real estate on the Buda side of the capital city. We can see a shift towards the higher price range because of the price increase also. The most significant change is in the price range above 400 thousand HUF/m2: in 2013 only 8% of transactions were in this price range compared to 17% in 2014. The same trend can be observed in Pest, but here real estate sales in the more relevant 15 to 25 million price range leaped from 18% to 25%. The provincial comparison for the same period did not have significant changes. Half of the buyers in the regions outside of Pest County spent 5 to 10 million for real estate, 20% of buyers spent less. Only 5% of transactions were over 25 million HUF. 30% of buyers from Pest County (excluding the capital city) spent 10 to 15 million HUF for real estate last year, the same percent of buyers spent 5 to 10 million HUF. 7% of buyers spent more than 25 million in this same region.

Further information: Gábor Rutai PR and analysis leader [email protected] Mobile: +36 30 811 0690

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TRANSACTION NUMBER AND DEMAND INDEX DH -TB (Duna House Transition Number Estimate) The sales volume was surprisingly high in December: nearly 10 thousand real estate sales took place. The last month of the year usually has a low closing value, and the 9855 real estate transactions were well beyond expectations, compared to December 2013, when only 5768 real estate transactions were registered. Since the depression the highest turnover with 9.544 transactions was measured in 2011 during the so-called „early repayment” season. There were a total of 105901 real estate sales in 2014 according to Duna House estimates. This is the first year since the crisis when total sale numbers go over 100 thousand. The past five years’ average (2009 - 2013) was around 89 thousand and it was surpassed in 2014 by more than 15%. As expected, December had the lowest sales volume for the year, but the 53 percentage point value was significantly higher compared to 46 points in December 2013 and 47 points in 2012 on the Demand Index.

DH-TB methodology The most important indicator of real estate market conditions is the annual transaction number. The official data is provided by KSH. (We marked these with blue.) The DH-TE is an estimate that shows an approximate mid-year data. It is based on the official data provided by KSH and the rate of transaction numbers conducted by Duna House. The estimate starts from this direction, it is based on the monthly transaction numbers of Duna House, and it contains professional corrections, which may influence on the actual market share. These can be as follows: KSH data regarding transactions between individuals, the influence of Swiss franc exchange rate on the real estate market, the rate of priority mandates, loan disbursement data by MNB and the performance of Duna House Hitel Centrum (Loan Centre), loan/cash purchase ratio, Land Registry Office verifications, etc.

DH - Demand Index As expected, December had the lowest sales volume for the year, but the 53 percentage point value was significantly higher compared to 46 points in December 2013 and 47 points in 2012 on the Demand Index.

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FLAT INDEX There was a continuous increase in the Nationwide Price Index during the last quarter of the year, surpassing the 1 percentage point increase during the previous two quarters and hitting 2 point high this quarter. The outcome was mainly caused by the significant increase of panel flat prices and partly by the strong price increase on Budapest’s entire real estate market. In some areas prices reached the same levels as before the depression.

DH – Nationwide Flat Price Index

About our Flat price index: The method used to calculate our Flat Price Index attempts to fully eliminate differences among real estates types. Comparable price indexes basically use regular averages that ignore the changing elements in transactions. In order to calculate the Duna House Flat Price Indexes we used a so-called „hedonic method” where we take the structure of the real estate, its condition (on a 1-5 scale), and size, year of construction, floor and location parameters into consideration. The weighting of the consumer groups formed this way remains the same on the time scale. We use the regional rate of transaction numbers published by KSH for weighting nationwide indexes.

National Flat price Index

According to nationwide data the price of panel flats increased from the 76 percentage point s in 2013, proceeding last year’s price increase and closing the price gap between brick flats and panel flats. The brick flats are at 85 points for the past three quarters, the panel flats dramatically increased 3 and then 5 points thus reaching 86 percentage points.

DH - NATIONWIDE PANEL INDEX DH- NATIONWIDE BRICK INDEX

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Flat index - Regional The provincial price index shows that the panel flat prices increased significantly, from 84 points to 90, in Eastern Hungary. In the same region the price of brick flats stays at 80 percentage points, stagnating with small variances at this level since 2010. The price index of both apartment types decreased slightly in Western Hungary, this slow decline being a trend since 2009 in this region, despite of the positive data from Győr-Moson-Sopron County.

EASTERN HUNGARY PANEL INDEX EASTERN HUNGARY BRICK INDEX

WESTERN HUNGARY PANEL INDEX WESTERN HUNGARY BRICK INDEX

FLAT PRICE INDEX - BUDAPEST

The capital city has the most impressive price index: the Panel Index leaped to 96 percentage points and the Brick Flat Index to 99 points. This means the flats in Budapest were sold at the 2008, pre-crisis price. The panel index started from an extremely low 77 points and it reached the present level in just a year. The brick flat price index was rarely lower than 90 points, 93 points midyear, and leaped to the impressive 99 points by the end of 2014.

DH - BUDAPEST PANEL INDEX DH- BUDAPEST BRICK INDEX

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BRICK FLAT DATA – 2014 second half of the year

Time of sale Time of sale County m2 price Unit price District m2 price Unit price (day) (day) Bács-Kiskun 188 000 10 231 000 142 Budapest 01. ker. 376 000 28 768 000 135 Baranya 161 000 9 058 000 171 Budapest 02. ker. 354 000 24 682 000 187 Békés 126 000 7 585 000 197 Budapest 03. ker. 371 000 23 516 000 121 Borsod-Abaúj- Budapest 04. ker. 248 000 13 150 000 100 96 000 5 906 000 118 Zemplén Budapest 05. ker. 421 000 35 311 000 202 Budapest 285 000 17 375 000 198 Budapest 06. ker. 318 000 22 626 000 183 Csongrád 179 000 9 683 000 180 Budapest 07. ker. 270 000 15 801 000 388 Fejér 149 000 7 424 000 169 Budapest 08. ker. 203 000 10 753 000 206 Győr-Moson-Sopron 281 000 16 084 000 107 Budapest 09. ker. 278 000 16 308 000 150 Hajdú-Bihar 212 000 12 210 000 139 Budapest 10. ker. 192 000 8 392 000 133 Heves 129 000 6 964 000 123 Budapest 11. ker. 330 000 21 906 000 130 Jász-Nagykun- Budapest 12. ker. 358 000 24 497 000 153 114 000 6 015 000 186 Szolnok Budapest 13. ker. 285 000 14 104 000 129 Komárom-Esztergom 116 000 6 503 000 148 Budapest 14. ker. 265 000 13 373 000 116 Pest 207 000 12 079 000 180 Budapest 15. ker. 249 000 13 940 000 163 Somogy 242 000 13 236 000 328 Budapest 16. ker. 277 000 17 357 000 160 Szabolcs-Szatmár- Budapest 17. ker. 331 000 17 200 000 164 169 000 9 357 000 181 Bereg Budapest 18. ker. 229 000 11 945 000 175 Tolna 95 000 4 807 000 139 Budapest 19. ker. 219 000 10 427 000 132 Vas 161 000 9 050 000 205 Budapest 20. ker. 186 000 8 955 000 105 Veszprém 219 000 11 124 000 124 Budapest 21. ker. 178 000 9 650 000 147 Zala 138 000 7 949 000 208 Budapest 22. ker. 276 000 21 192 000 133

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PANEL FLAT DATA – 2014 second half of the year

Time of sale Time of sale County m2 price Unit price District m2 price Unit price (day) (day) Bács-Kiskun 142 000 7 627 000 78 Budapest 03. ker. 196 000 10 088 000 62 Baranya 121 000 6 050 000 104 Budapest 04. ker. 187 000 9 632 000 112 Békés 109 000 6 109 000 237 Borsod-Abaúj- Budapest 08. ker. 176 000 8 955 000 86 90 000 4 767 000 142 Zemplén Budapest 09. ker. 195 000 10 092 000 86 Budapest 192 000 9 841 000 97 Csongrád 120 000 6 544 000 134 Budapest 10. ker. 168 000 9 045 000 67 Fejér 123 000 6 491 000 118 Budapest 11. ker. 247 000 12 367 000 61 Győr-Moson-Sopron 225 000 10 364 000 125 Budapest 13. ker. 226 000 12 037 000 118 Hajdú-Bihar 164 000 8 454 000 87 Heves 125 000 6 793 000 55 Budapest 14. ker. 205 000 9 914 000 54 Jász-Nagykun- Budapest 15. ker. 180 000 8 882 000 162 109 000 5 415 000 137 Szolnok Budapest 16. ker. 208 000 12 328 000 236 Komárom-Esztergom 111 000 5 757 000 141 Pest 149 000 8 351 000 181 Budapest 17. ker. 163 000 8 878 000 82 Somogy 121 000 6 303 000 199 Budapest 18. ker. 156 000 8 269 000 119 Szabolcs-Szatmár- 134 000 6 978 000 119 Bereg Budapest 19. ker. 172 000 9 029 000 115 Tolna 84 000 4 714 000 242 Budapest 20. ker. 174 000 8 225 000 95 Vas 141 000 8 019 000 120 Budapest 21. ker. 164 000 7 402 000 104 Veszprém 127 000 6 675 000 88 Zala 116 000 7 028 000 172 Budapest 22. ker. 185 000 9 660 000 129

FLAT PRICE DATA – December 2014

Panel and brick flats in Eastern Hungary were purchased for 133.000 and 172.000 HUF/m2 respectively during the last month of the year. The average panel and brick flat price in Western Hungary was 126.000 HUF/m2 and 164. ooo HUF/m2 respectively. Panel flats were purchased in the capital city for 229.000 HUF/m2 in the Buda and for 180.000 HUF/m2 in the Pest side. The average brick flat price was 377.000 HUF/m2 in Buda, 355.000 HUF/m2 in downtown and 235.000 HUF/ m2 in Pest.

Panel nationwide Panel Budapest

december 2014. december 2014.

Flat price m2 price Time of sale / day Flat price m2 price Time of sale / day Buda 12 781 000 229 000 88 East 7 274 000 133 000 108 Pest 9 877 000 180 000 72 West 6 806 000 126 000 136 Brick Budapest

Brick nationwide december 2014.

december 2014. Buda 29 942 000 377 000 143

East 9 495 000 172 000 198 Pest 12 308 000 235 000 160

West 8 688 000 164 000 148 Bp. Centre 28 190 000 355 000 324

QUALITY PREFERENCE – 2014 second half of the year The rate of the renewable flats was the highest in Jász-Nagykun-Szolnok County; here 12 percent of all transactions fell into this category. The rate was a bit lower in Borsod-Abaúj-Zemplén County; every 10th purchased flat required renovation. This quality was the least popular in Békés and Veszprém counties, only 1 or 2 of all sales was renewable. Only 3-4 % of all flat sales were new constructions, Győr-Moson-Sopron County showing a higher rate, based on the Duna House data 23% of all sales in this county were new constructions. This high rate was mainly driven by a few projects in Sopron city.

New

Very good

Good

Acceptable

Needs renovation

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Customer interest for the capital city districts – December 2014 District aug. 2014. sept. 2014. Budapest 01. ker. 9,1% 9,4% Budapest 02. ker. 14,6% 14,0% Budapest 03. ker. 10,7% 9,5% Budapest 04. ker. 7,5% 7,0% Budapest 05. ker. 13,1% 13,0% Budapest 06. ker. 19,5% 19,1% Budapest 07. ker. 18,6% 17,5% Budapest 08. ker. 10,9% 11,0% Budapest 09. ker. 14,4% 14,0% Budapest 10. ker. 6,3% 7,3% Budapest 11. ker. 16,7% 15,0% Budapest 12. ker. 12,0% 11,7% Budapest 13. ker. 21,3% 20,0% Budapest 14. ker. 17,9% 17,9% Budapest 15. ker. 5,6% 6,4% Budapest 16. ker. 5,1% 5,4% Budapest 17. ker. 3,9% 3,9% Budapest 18. ker. 6,3% 6,3% Methodology: Budapest 19. ker. 7,4% 6,9% Our potential buyers mark the districts (several ones!), that Budapest 20. ker. 5,2% 5,4% may be of their interest at a personal meeting with our realtor. Budapest 21. ker. 2,8% 3,2% We use this data to create the popularity map shown above. Budapest 22. ker. 3,1% 3,2% Budapest 23. ker. 1,0% 1,1%

Although the popularity of the 13th District slightly decreased during the last month of the year, it was still the most popular location in December; every fifth potential customer marked it as a potential place for purchase. Among the „favorites” the 6th District was the second and 14. District was the third most popular. South-Budapest Districts were the least favored, interest rates were below 5% in the 13th, 21th and 22th District.

BARGAINING – December 2014

Change of target Bargain Family house sellers of Budapest had to be the most flexible in price December, they had to give a 7% price-reduction and buyers could bargain another 11%. In the province 6% was the price- House reduction for this real estate type and the average bargain was Budapest 7% 11% an additional 9%. County Pest 6% 9% The price-reduction rate for panel flats was only 2% and the In the country 6% 9% average bargain was between 4-5%. The price-reduction rate for brick flats was between 3-4% and the buyers could bargain PANEL another 5-7%. Budapest 2% 4% In the country 2% 5% Change in target price is the difference shown between BRICK the first recorded target price in the mandate and the last Budapest 4% 5% recorded target price at the presence of the buyer. The In the country 3% 7% bargain shows the further price reduction agreed by the TOTAL buyer and the seller during meetings. The two numbers together clearly show the price difference between the one Budapest 4% 6% the seller decided and the one at the sale. In the country 4% 7%

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BARGAINING – 2014 second half of the year

The map shows the full price change: target price change + bargain

Change of target Change of target County Bargain District Bargain price price Bács-Kiskun 3% 8% Budapest 01. ker. 1% 5% Budapest 02. ker. 4% 5% Baranya 4% 7% Budapest 03. ker. 2% 4% Békés 6% 9% Budapest 04. ker. 3% 4% Borsod-Abaúj-Zemplén 5% 8% Budapest 05. ker. 2% 7% Budapest 3% 5% Budapest 06. ker. 4% 5% Csongrád 4% 8% Budapest 07. ker. 6% 3% Budapest 08. ker. 3% 6% Fejér 4% 8% Budapest 09. ker. 2% 4% Győr-Moson-Sopron 2% 5% Budapest 10. ker. 2% 5% Hajdú-Bihar 3% 5% Budapest 11. ker. 2% 5% Heves 3% 9% Budapest 12. ker. 4% 6% Jász-Nagykun-Szolnok 6% 12% Budapest 13. ker. 2% 4% Budapest 14. ker. 3% 5% Komárom-Esztergom 3% 8% Budapest 15. ker. 3% 5% Pest 6% 7% Budapest 16. ker. 4% 6% Somogy 4% 6% Budapest 17. ker. 3% 6% Szabolcs-Szatmár-Bereg 3% 7% Budapest 18. ker. 3% 5% Tolna 6% 8% Budapest 19. ker. 3% 5% Budapest 20. ker. 5% 7% Vas 3% 6% Budapest 21. ker. 2% 6% Veszprém 2% 7% Budapest 22. ker. 3% 7% Zala 4% 7% Budapest 23. ker. 4% 7%

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CUSTOMER PROFILE: BUYERS IN DECEMBER

Investor presence in Budapest was high as usual. 28% of all transactions were made by investors, involving an average price above 15 million HUF in December. First time flat buyer ratio was a bit lower at 27%, they spent an average of below 12 million HUF. Half of the buyers were aged between 20-40 years, and one-third of them declared themselves as employees.

BUYERS AGE - Budapest BUYERS STATUS - Budapest REASON FOR BUYING - Budapest

Employed Investment

Buy first flat Entrepreneur

Moving in bigger flat Pensioners Moving in smaller flat Top manager Generations’ separation

Student Generations moving in together

Middle manager Divorce

status AVARAGE PRICE SQM AVARAGE AGE AVARAGE PRICE SQM LIFE SITUATION PRICE SQM Middle manager 15 775 000 57 Divorce 9 367 000 76 20-30 10 562 000 45 Generations moving Student 11 132 000 42 in together 13 250 000 67 30-40 14 188 000 64 Top manager 22 850 000 64 Generations’ separation 21 478 000 72 40-50 21 692 000 71 Pensioners 15 966 000 59 Moving in smaller flat 16 011 000 58 50-60 17 049 000 66 Moving in bigger flat 20 575 000 73 Entrepreneur 23 245 000 81 Buy first flat 11 884 000 50 60- 15 000 000 60 Employed 11 013 000 50 Investment 15 522 000 57 In the province the largest buyer group was first time buyers with 28% of the market, they spent 10.5 million HUF in average. Every fourth buyer moved to a bigger flat than the previous, the average flat size was 122 m2. 20% of the provincial buyers declared themselves investors on the real estate market; they spent 9.6 million HUF on average for real estate. The ration of employees was high, 59% of the provincial buyers.

SELLERS AGE - countryside SELLERS STATUS - countryside REASONE FOR SELLING - countryside

Buy first flat Employed

Moving in bigger flat Entrepreneur Investment Pensioners Moving in smaller flat

Middle manager Divorce

Top manager Generations’ separation

Student Generations moving in together

AVARAGE AVARAGE PRICE status AVARAGE PRICE SQM AGE SQM LIFE SITUATION PRICE SQM - 20 6 217 000 50 Student 7 463 000 50 Generations moving in together 8 900 000 82 20-30 9 691 000 69 Top manager 12 200 000 85 Generations’ separation 10 569 000 75 30-40 11 734 000 99 Middle manager 11 300 000 95 Divorce 7 922 000 73 40-50 11 732 000 80 Pensioners 10 693 000 65 Moving in smaller flat 8 465 000 62 Investment 9 630 000 70 50-60 9 517 000 68 Entrepreneur 12 377 000 93 Moving in bigger flat 15 875 000 122 60- 10 320 000 64 Employed 8 865 000 76 Buy first flat 10 543 000 72 12 DUNA HOUSE BAROMETER

CUSTOMER PROFILE: SELLERS IN DECEMBER

One-third of the sellers in Budapest declared the reason for selling is to move into a bigger flat. The second largest group was sellers of inherited real estates. Sellers with heritage sold flats for an average 12 million HUF. Every fourth seller declared they want to move into a smaller home.

SELLERS AGE - Budapest SELLERS STATUS - Budapest REASON FOR SELLING - Budapest

Moving in bigger flat Employed

Sale of inherited property Entrepreneur Moving in smaller flat

Pensioners Sell because prepayment

Middle manager Divorce

Top manager Generations moving in together

AGE AVARAGE PRICE SQM status AVARAGE PRICE SQM AVARAGE LIFE SITUATION PRICE SQM 20-30 15 517 000 49 Top manager 41 000 000 109 Generations moving in 19 000 000 60 together Middle 30-40 16 300 000 60 15 700 000 70 manager Divorce 29 100 000 100 40-50 16 935 000 65 Pensioners 18 675 000 64 Sell because prepayment 13 367 000 56 Moving in smaller flat 24 110 000 84 50-60 15 660 000 60 Entrepreneur 17 978 000 58 Sale of inherited property 12 121 000 60 60- 12 404 000 51 Employed 13 239 000 51 Moving in bigger flat 13 395 000 49

34% of the provincial sellers sold inherited real estate for an average of 8.1 million HUF. Every fourth seller declared they want to move into a bigger flat, their average flat size was 62 m2 and they sold their flats for 13.6 million HUF on average.

SELLERS AGE - countryside SELLERS STATUS - countryside REASONE FOR SELLING - countryside

Employed Sale of inherited property

Moving in bigger flat Pensioners Moving in smaller flat

Entrepreneur Divorce

Generations’ separation Middle manager

Sell because prepayment

Top manager Generations moving in together

AVARAGE AVARAGE PRICE AGE SQM status AVARAGE PRICE SQM LIFE SITUATION PRICE SQM Generations moving in 20-30 9 334 000 55 Top manager 18 334 000 81 14 050 000 93 together Middle 30-40 11 030 000 85 12 605 000 102 Sell because prepayment 8 997 000 66 manager Generations’ separation 13 850 000 80 40-50 11 037 000 70 Entrepreneur 10 828 000 72 Divorce 14 634 000 106 Moving in smaller flat 13 643 000 93 50-60 10 502 000 76 Pensioners 9 765 000 92 Moving in bigger flat 8 902 000 62 60- 10 558 000 102 Employed 8 364 000 65 Sale of inherited property 8 095 000 81

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Transaction Parameters- Budapest

BUDA PEST Flat size (m2) Flat size (m2)

Price / m2 (thousand HUF) Price / m2 (thousand HUF)

Flat price (million HUF) Flat price (million HUF)

2nd half of year 2014 2nd half of year 2013

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Transaction Parameters — Country

The provincial comparison for the same period did not have significant changes. Half of the buyers in the regions outside of Pest County spent 5 to 10 million for real estate, 20% of buyers spent less. Only 5% of transactions were over 25 million HUF. 30% of buyers from Pest County (excluding the capital city) spent 10 to 15 million HUF for real estate last year, the same percent of buyers spent 5 to 10 million HUF. 7% of buyers spent more than 25 million in this same region.

Nationwide (without Central Hungary) County Pest

Flat size (m2) Flat size (m2)

Price / m2 (thousand HUF) Price / m2 (thousand HUF)

Flat price (million HUF) Flat price (million HUF)

2nd half of year 2014 2nd half of year 2013