Mission impossible?! – Property purchase in the Hungarian real estate market
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In the first half of 2019, the average monthly net salary – not including allowances – was 719 EUR (~239,043 HUF). Still, salaries can vary significantly in the different regions of Hungary. Besides this factor, remarkable differences can be experienced in real estate prices as well. Despite the fact that the most expensive properties can be found in Budapest, some other cities also require harder work to obtain our dream home.
How long should I put aside to purchase a flat?
In this case, two important factors should be taken into consideration – besides income, the price of the chosen property is also a decisive factor. Not surprisingly, house prices also significantly vary in the different areas of the country.
According to the report of the Hungarian National Bank (MNB), in the first quarter of 2019, the highest real estate prices/m2 were experienced in Budapest. However, if income is also taken into consideration, we get unexpected results: in the capital, an average of 2.8 months work is required for 1 m2, while in Veszprém and Somogy counties, this value is even higher – an average income of 3.8 months and 3.7 months are needed.
This means that a 50 m2 apartment in Budapest can be purchased by an average of 11.6-year-long working period, while in Veszprém county, one should work 15.8 years to buy this flat – assuming the whole salary/month can be put aside for the purchase of the apartment.