Duna House : Other information Publication of the Duna House Barometer for July 2018 2018.08.13.

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
September 12, 2018.	August data
October 12, 2018.	2018. Q3 data (including price indexes, mortgage data)
November 12, 2018.	October 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

Duna House Transaction number estimate, in line with other market transaction data, suggests an unusually strong summer season on the real estate market. The demand index -higher than in the previous years-also reflects an active market demand, with the index currently at 83 points, predicting an August similarly strong as July.

Based on the assessment of transaction parameters, the most popular size in Budapest is still in the 40-60 m2 range, with Buda characterized by a bigger (60-80 m2), and Pest by a smaller (20-40) category. When looking at prices, the gap between the two sides of the Danube is still significant. In Buda, 50% of sale and purchases the m2 price has exceeded HUF 750 thousand; while in Pest 33% of transactions fell in the HUF 600 thousand plus price range. In means of average property value, in Buda 53% of the transactions involved flats above HUF 40 Million sale price, while in Pest the HUF 20-25 Million price range accounted for the highest part (24%).

The dynamic rise of panel flat prices, based on the gathered data, seems to have continued in July. When compared to the previous year, square meter prices on regional level have gone up by HUF 50 thousand, while in the capital buyers paid HUF 100 thousand more for one m2. That means, average m2 prices outside Budapest are above HUF 250 thousand, and exceed HUF 400 thousand in the capital.

As far as forecasts are concerned, the volume of sale and purchase transactions on the Hungarian real estate market will reach 100 thousand in August, which is a limit that was not crossed in the entire year of 2009 and 2013.

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)

The Hungarian real estate market has closed its most active month so far this year. The estimated 14 thousand sale-and purchase volume calculated by Duna House is 10% higher than last year and 26% more than in July 2016. Summer seasons tend to be more active, but it's been a long time since a similarly strong month. Transaction volumes exceeding 14 thousand were last measured in April and May 2016. This year so far 91 700 sale and purchase transactions have been completed.

250 000

volume of residential property transactions conclueded between private individuals (Hungarian

17 500

Central Statistic Office)

14 246200 000

15 000

150 000

12 500

100 000

10 000

50 000

7 500

0

5 000

JANUARy

FEBRUARy

MARCH

APRIL

MAy

JUNE

KSHéanvensuaalddaatta

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

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!