Duna House : Other information Publication of the Duna House Barometer for August 2018 2018.09.12.

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
October 12, 2018.	2018. Q3 data (including price indexes)
November 12, 2018.	October data
December 12, 2018.	December 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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Privacy Policy, Forthcoming issues Executive summary

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Duna House Transaction Estimate Transaction parameters in Budapest Transaction parameters regionally

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Residential Flat data

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

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Client profile: buyers

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Client profile: sellers

EXECUTIVE SUMMARY

By the end of summer it is clearly visible that the real estate market is presenting a much more even tendency than usual in means of seasonality. The turnover in August was stronger than in the previous two years, with its 80 point value of the demand index, indicating significant interest. The time need of sale -when compared to the same period of the previous year- has continued to decrease, resulting in less than two months in case of panel flats regardless of the location on countrywide level. In case of brick flats, it is between 3-3.5 months depending on the location, with Budapest center being among the slowest ones, partly as a result of high prices.

In the capital, it is worthwhile taking a closer look at Buda. On one side, property prices have significantly increased in Buda districts. On the other hand, the demand is still high in Districts 2 and 3. In the latter there are several newly-built projects attracting buyers -including Duna House's own projects (MyCity Residence, Forest Hill), while the high prestige properties in District 2 are very popular among Hungarian and foreign buyers as well. As a result, the average m2 price on the Buda side is by now above HuF 500 thousand for panel flats, and soon reaches HuF 700 thousand for brick flats. Bargain potential is better in the latter case, being twice as high as last year, reaching even 4%.

government measures introduced on the housing loan market, in line with the seasonally stronger autumn, may indicate further changes in the months to come.

Further information

Károly Benedikt• Head of PR and analysis[phone]

Duna House Holding Nyrt.

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

TRANSACTION DATA

Duna House Transaction Number Estimate (DH-TE)

In accordance with Duna House monthly Transaction Number Estimate, 13 869 property sale and purchase transactions took place in August 2018 countrywide. With its 14 thousand sale and purchase transactions in August, the Hungarian real estate market has crossed the 100 thousand limit, as in the first eight months of the year 105 573 properties were sold/purchased in total. Between 2009 and 2013 the total volume of transactions was lower in relation of the whole year. This August's data is not a declining one, as the market has closed a strong summer month, similarly to the previous year, accounting for a 17% increase when compared to 2016 values.

250 000

200 000

150 000

100 000

50 000

0

17 500

15 000

12 500

10 000

7 500

5 000

KSsH éavnensualddaatta

2016

2017

2018

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

jANuARy	FEBRuARy	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

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!