1200 euros per square metre – the real estate market has gone crazy in Budapest

Business online Forbes reports, based on data published by Duna House, that the prices will keep on getting higher on the real estate market in Hungary. The prices have gone highest in the capital city, where the average price hits 400 thousand forints (1200 euros) per square metre.

Statistics regarding real estate activity in the first half of this year reveal that real estate is becoming more and more expensive, and yet the number of purchases is growing. Over 77 thousand transactions have been completed so far, which is much more compared to this half of the year from 2017 and foreshadows a strong market flow.

Real estate market experts and the Hungarian National Bank predicted a 10-12 per cent growth in prices for this year, which is very likely to come true based on the data collected so far.

Furthermore, by the end of 2018, 160-180 thousand transactions are expected to be completed.

It seems unlikely that the real estate market will slow down,

thanks to the new projects that are to be finished throughout the second half of this year.

The strongest growth of price is to be noticed in Budapest in the case of block flats: on average, a square metre costs 1200 euros, but in the 11^th and 13^th districts this can reach even 500 thousand forints per square metre (1500 euro). In the case of brick houses in Budapest, a square metre costs 541 thousand forints (1650 euros), which makes up to a 5 per cent growth.

Károly Benedikt, the leading analyst of Duna House, reveals that the prices in the 11^th and 13^th districts are almost as much as in the case of freshly built flats in the most popular districts. Blocks of flats are becoming more expensive at a faster pace than brick flats. There are districts where a two-digit growth was noted.

The most expensive flats are still in the fifth district: a square metre costs 914 thousand forints (2800 euro).

Prices have gone up outside the capital city too, but there is a strong division between regions. What is surprising, is that where so far the prices were more budget-friendly, the growth was the strongest.

Veszprém county is still the most expensive region right after Budapest.

Prices in the countryside vary between 200-300 thousand forints (600-900 euros) per square metre.

Photo: Alpár Kató – Daily News Hungary

Source: forbes.hu