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EU’s Hottest Property Market Cools as 18% Key Rate Hits Lending

  • Real estate transactions, mortgage lending plunge in Hungary
  • Hungarian housing prices grew at fastest pace in EU since 2015
Residential building construction in Budapest, Hungary.

Residential building construction in Budapest, Hungary.

Photographer: Akos Stiller/Bloomberg

Hungary’s property market, one of the hottest in the European Union over the past decade, is cooling fast as the bloc’s highest interest rates cut demand for mortgages.

The number of real estate transactions declined by a third in September, while mortgage lending was down 38% compared with its level last year, according to a central bank report published Thursday.