Duna House : Other information Publication of the Duna House Barometer 2018.12.12.

PRIVACY POLICY

Statistical information and estimates published in the Duna House Barometer are the intellectual property of Duna House Franchise Ltd. Statistical information and estimates presented in the Duna House Barometer are for infor-mation purposes only, for the complexity and accuracy of which Duna House Holding does not take responsibility. Statistical information and estimates published in the Duna House Barometer can be used for individual purposes and responsibility by any person with reference to the following conditions:

• •Statistical information and estimates published in the Duna House Barometer must remain unchanged when presented.

• •Statistical information and estimates presented in the Duna House Barometer must be published only with exact source indication: words "Source: Duna House Barometer" must be indicated right prior or following the text. If in context, it must directly refer to Duna House Barometer as source.

Any use other than the above will imply legal juridical measures. Duna House is entitled to claim the termination of misuse and refund of the entire damage caused. In case of breaching regulations of link posting Duna House is enti-tled to instantly remove the link pointing to the webpage and claim the refund of its damages.

FORTHCOMING ISSUES

Date of issue	Content
January 12, 2019.	2018. Q4 data (including price indexes)
February 12, 2019.	January data
March 12, 2019.	February data

Duna House Barometer is available from the 12th day of each month (forthcoming weekday if weekend) on the webpage:www.dh.hu/barometer

If you wish to receive Duna House Real Estate Barometer or download previous issues visit our webpage:www.dh.hu

GENERAL INFORMATION CONSERNING THE CONTENT

OF THE PRESENT PUBLICATION

Attention! The present publication must not serve as grounds for estimating, or making conclusions in relation of Duna House business profitability.

All data, information, estimates and professional statements presented in the publication are developed based on data gained from the activities of Duna House Holding members,or in some cases are based on subjective experience. Application of those for the entire Hungarian property market may require additional corrections. Data sources - unless indicated differently at the given section - derive from the database operated by Duna House Holding, the content of which is compiled by members of the network upon their individual judgement and information gained from clients. The operator does not take responsibility for the comprehensiveness of the data. Data presented in the present publication is mainly based on parameters of property transactions in major Hungarian cities given by Duna House branch offices and agents.

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4.

Privacy Policy, Forthcoming issues Executive Summary

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6.

7.

Duna House Transaction Estimate Transaction parameters in Budapest Transaction parameters regionally

8.

Residential Flat data

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Demand Index and Interest toward the districts Quality preference and Transaction time

11.

Client profile: buyers

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Client profile: sellers

EXECUTIVE SUMMARY

Property market tendencies have not changed much as the end of the year is getting closer. In November, active market activity, increasing prices and a shortening time need for sale were the main characteristics of the market again.

Duna House keeps up its estimate of higher transaction numbers, thus this year's data -in line with the expectations- will outgrow the numbers from last year.

In addition to transaction numbers, square meter prices are also in continuous growth. The average m2 price of panel flats is HUF 550 thousand in Buda and HUF 450 in Pest. The average price of brick flats is even higher, reaching HUF 750 thousand in a major part of Budapest, with the less expensive district presenting HUF 560 thousand / m2 as well.

Shortening time need for sale is also visible, as panel flats are sold within two months, while the sale of brick flats takes 3-4 months.

No major changes were seen in client profiles, it is still the age group of 30-50 representing the largest group among buyers, mainly with investment as the motivation. Sellers come from all age groups in nearly the same volume, with only the youngest age group being much lower. In November, the leading reason behind the sale was moving into a bigger property.

Further information

Károly Benedikt• Head of PR and analysis[phone]

Duna House Holding Nyrt.

H-1016 Budapest Gellérthegy str. 17. [phone]www.dh.hu

3 INTERESTING FACTS:

TRANSACTION DATA

Duna House Transaction Number Estimate (DH-TE)

The property market was stronger in November again when compared to the previous years. This year's value is 12% higher than data from 2016, and also presents a 2% increase since last year. Duna House expects stronger sale indicators for December as well, with the total annual volume of transactions exceeding the turnover in 2017.

250 000

Volume of residential property transactions conclueded between private individuals (Hungarian

17 500

Central Statistic Office)

200 000

15 000

150 000

100 000

12 500

10 000

50 000

7 500

0

5 000

The below table shows monthly transaction volume estimates by Duna House, prepared in the current month.

MARCH	APRIL	MAy	jUNE	jULy	AUGUST
2016	9 870	13 130	13 897	14 118	13 294	14 550	11 257	11 814	12 029	10 786	10 700	9 229
2017	10 444	11 317	13 762	12 452	13 855	12 836	12 951	13 787	13 639	12 246	11 820	9 787
2018	10 918	12 869	13 426	13 180	13 967	13 098	14 246	13 869	12 787	12 689	12 033

jANUARyFEBRUARy

SEPTEMBEROCTOBERNOVEMBERDECEMBER

Methodology behind DH-TE: Regardless of the time, the most important indicator of the real estate market is the yearly sale-purchase transaction number. DH-TE is an estimate published by Duna House showing interim approximate data. The estimate is based on monthly transaction number of property brokered by Duna House and the estimated market ratio of Duna House. The estimate of the actual monthly market ratio of Duna House is based on the following indicators:: 1. data published by the Hungarian Central Statistical Office on transactions among private individuals Since the Statistical Office publishes data with a months' delay, the correction of market ratio can be carried out retroactively with refining of the estimate as well. Attention! After 2016 and by the newly built flat boom, pre-contracted transactions are visible in the statistics of the Statistical Office with a delay of several months, even 1-2 years, only following the tariff of the capital transfer tax, resulting in anomalies in the statistics. 2. Amount of issued Energy certificates. 3. Subjective assessment based on other management information from the Duna House Holding.

Please note that DH-TE data is not appropriate for defining the volume of transactions brokered by Duna House!