Skyrocketing property prices in Budapest – EUR 3,000/m2

Last year, more than 120 homes were sold in those Budapest streets where the average price per square metre exceeded EUR 3,000 (~HUF 1 million). However, similar price levels could be observed in the city centre as well – in the 5th district, the average price was more than EUR 2,500 (~HUF 850,000) per m². Another extreme in Budapest is the notorious street of crime, Hero Street, where one m² is worth EUR 300 (~HUF 100,000) based on purchases in 2018.

In total, 19 public places in Budapest realised sales at an average price of EUR 3,000 (~HUF 1 million) in 2018. According to the Central Statistical Office (KSH), 15 of these are in the 5th district, while 2-2 others are located in the 1st and 2nd districts.

The most expensive apartments in the city centre can be found in Dorottya Street, where customers paid an average of EUR 4,830 (~HUF 1.6 million) for 1 m². Similar expensiveness can be experienced around Martyrs’ Square and Vörösmarty Square with an average selling price of EUR 3,924 (~HUF 1.3 million) per m², followed by Vécsey Street where one square metre was offered for EUR 3,622 (~HUF 1.2 million). The most expensive area outside the capital is Bérc Street in the 1st district – situated in the vicinity of Gellért Hill – where the average price of home sales reached EUR 3,622 (HUF 1.2 million).

What is even more surprising is that while in 2017, only nine public places reached the skyrocketing price level, their number has doubled for last year. Furthermore, while two years ago, only a few dozen sales were realised in these areas, last year, more than 120 purchases were finalised.

In 2018, the 5th district was top-ranked on the list of expensiveness with an average price of EUR 2400-2700 (~HUF 800-900 thousand).  It is not surprising that Budapest has skyrocketing prices in the city centre – when compared to last year’s results, EUR 2,600 (~HUF 854,000), it represents an annual price increase of 21%.

The second most expensive area is the 1st district with EUR 2,100  (~HUF 690,000), followed by the 2nd district, the 12th district, and the 6th district with 1,900 EUR (~ HUF 631,000) in 2018.

Despite the fact that in several peripheral districts, property sales were realised only at an average price of EUR 600-750 (~HUF 200-250 thousand), the least expensive public space is still the notorious street of crime, Hero Street, in the 10th district – a little more than EUR 300 (~HUF 100,000) was the average price per square metre, according to last year’s sales figures.

As Hungarian news portal Magyar Nemzet reports, the most multi-faceted part of Budapest is the 8th district: at Corvin Promenade, EUR 2,760 (~HUF 915,000) was paid for one square metre, while in Benyovszky Móric Street, its value is decreased to EUR 815 (~HUF 270,000).

Taking everything into account, the average price per m² in Budapest was EUR 1,545 (~HUF 512,000) last year. Besides increasing prices, it can also be observed that the number of purchases is decreasing year by year – in 2017, more than 33,000 homes changed hands in Budapest, while one year later, this number was a bit less than 32,000.

Source: magyarnemzet.hu