Real estate prices skyrocketing in Hungary – these are the new trends

Today’s tendencies show that real estate purchasers in Hungary tend to prefer the cheaper solutions as a reaction to the increase in housing prices in the past couple of years. This rate is advantageous for villages and smaller towns, or even for the agglomeration of Budapest, according to Tőzsdefórum.  

The data of the Hungarian Central Statistical Office (KSH) shows that Hungarians keep drifting towards purchasing cheaper housings, despite last year’s increase of housing market in Budapest. KSH states that this rate is obviously favourable for smaller settlements. The prices of used real estates grew only by a small measure compared to 2016, exactly by 2.8 percent. The quality of the real estate became a significantly less critical factor.

KSH’s report also added that the traffic of the real estate market has been following a decreasing tendency since the first quarter of 2015. This rate can be observed even within Budapest and its agglomeration; purchasers’ needs are shifting towards lower prices, and they care less about the quality of the housing.

As Balla Ingatlan’s manager László Gyula Rácz highlighted, people looking for housing have to make some compromises, in case they intend to find a proper real estate. Location is the first of these, as it can greatly influence prices: housing becomes significantly cheaper if someone passes Budapest’s borders. This makes the agglomeration spectacularly more tempting for purchasers.

Though there are still no masses moving out of the capital yet, cheaper real estates in the outer areas are already much more popular among customers.

A flat in Budapest nowadays tends to match price with a family house in the agglomeration, the difference worth the long travels. Such surrounding settlements as Budakeszi, Telki, Budajenő, Nagykovácsi, Vecsés and Gyál are becoming more populated because of this tendency.

Even when customers are determined to stay within Budapest, they are looking for the cheaper areas of the capital like Békásmegyer. Óbuda counts right now as the area of the cheapest residencies, and it can be seen in its recent popularity as well. Besides the prices, this area is preferred because of the vicinity of the market, the new playgrounds and Római Bank.

Flats seem to be the most livable types of housing, but as their popularity grows their price is expected to follow. This might be the reason that even among flats the outer areas are the most popular.

People also often seek for smaller flats as they are more sustainable. Larger flats usually have the mere fragment of smaller flats’ interest.

The overall prices of the real estate market in Hungary forces people to give up some of their standards. To sum up, we are witnessing the rise of the popularity of smaller housings in the outer areas and agglomerations of Budapest.

Source: Tőzsdepiac