Budapest real estate prices are astoundingly high

It has been all over the news recently that real estate prices in Budapest do not seem to stop increasing. Now, prices have reached a point where it is almost unbelievable: in certain districts, apartments retail for 3,145 Euros per m2. If it does not seem high enough, keep in mind that the average net monthly wage is around 663 Euros.

According to a quantitative survey conducted by Hungarian bank OTP, the average price of m2 can be more than 3,145 Euros (1 million Forints) in certain districts of the capital, namely in Districts I, II, V and XII.

OTP also warns that prices in other districts can also get this high within a couple of years, Szeretlekmagyarország.hu reports. In particular, the m2 prices of Districts VI, VII, VIII, IX, XI, III and XIII are expected to reach the 3,145 Euros price range in the future.

Regardless of the high m2 prices, collected data seems to indicate that the No. of sales will still increase in 2019, and it will probably reach its high point, according to OTP’s survey.

The average price of m2 in Budapest is around 2,357 Euros (HUF 750,000) this year, but this price is expected to reach 2,670 Euros (HUF 850,000) next year.

District XIII is the favourite district of buyers, 20% of all the sales last year were made in this district. 6,400 new apartments were sold in 2018. District XI is the second most popular area in Budapest, where 1,300 apartments were sold last year.

According to OTP’s survey, approximately 13,500 new apartments are to be sold this year, 1/3 of which is located in District XIII.

Altogether 8,400 new apartments were sold in Budapest in 2018. This number is slightly lower than in 2017.

According to Dávid Valkó, Head of Real Estate Market Research at OTP, an increase in real estate prices is still expected in the future due to the VAT (value-added-tax).

Featured image: Daily News Hungary

Source: www.szeretlekmagyarorszag.hu