Growth in the retail sector will continue to be slow, with developers turning their attention to towns outside Budapest. The Hungarian capital is now widely thought to have almost reached capacity in the shopping center market. GKI, however, say there is probably still room for one or two well-placed shopping malls. Market players have reported a disappointing start to the year in the residential market. Demand has decreased while supply is rising due to an ever larger number of developers, many of whom do not have significant industry experience. People buying residential real estate for investment purposes have almost entirely withdrawn from the market, while many first-time buyers are finding it hard to get a foot on the ladder due to falling real wages, higher prices and reductions in funds available through government-sponsored support programs. The government's "nest builder" subsidy package for first-time home buyers under the age of 30 has failed to increase demand significantly. Around 8000 people are expected to take advantage of the program this year. Plans to raise the age limit of those eligible to take part in the program as well as offer VAT discounts to home buyers may significantly increase demand, GKI concludes.