Skyrocketing prices: brutal numbers from the Budapest property market

The average price per square metre of the newly built properties in Budapest has reached 1.43 million HUF (EUR 3,423). That is a 32 percent rise compared to last year and a 6 percent increase compared to the previous quarter. Meanwhile, Duna House informed us about certain districts in Budapest where the average price per m2 of the newly built apartments was much higher, more than 7,183 EUR. Below you can read the details.

Easier to buy property in Budapest than in Vienna or Bratislava

Cordia, a real estate developer, analysed the big Budapest real estate projects lately. They found that the average price per square metre was HUF 1.66m (EUR 3,974) in Buda and HUF 1.3m (EUR 3,122) in Pest. The number of new apartments has been still growing in the capital. At the end of September, investors could pick from 5,200 properties. However, that number is lower than the 2017-2021 average, which was 7,000.

According to index.hu, 1,060 new apartments were sold in Budapest between July and September. That equals the previous quarter’s 1,100. However, index.hu found that it was easier to buy a property in Budapest than in Austria, Czechia and Slovakia. Wages are higher there, but real estate is much more expensive than in the Hungarian capital.

Read alsoUnexpected turn on Hungary’s property market concerning sales

7,283 EUR/m2 is not exceptional in Budapest

Duna House, another Hungarian real estate agency, told the Hungarian News Agency (MTI) that apartments in panel buildings were the easiest to sell. In West Hungary and Buda, second-hand brick apartments are the most difficult to market. Meanwhile, the selling time of the newly-built apartments decreased significantly. 

Supply is the greatest in the 13th, 9th and 11th districts of Budapest. Duna House found that the average price per m2 of the new apartments in the capital was HUF 1.2 million (EUR 2873).

That increased to HUF 3 million (EUR 7,283) in the 1st district.

They said that the trend had been decreasing regarding the number of apartments sold. For instance, they calculated 120-130 thousand real estate purchases by end-2022, while that number reached 152 thousand last year in Hungary.

They added that prices had not started to fall yet, but the bargaining position of the buyers improved. More people would like to buy 40-60 m2 downtown apartments to rent them out. Therefore, the emphasis moved from the HUF 20-30m category to flats worth HUF 70m. Duna House added that prices skyrocketed compared to Q3 2021. In Buda, the average m2 price of apartments in panel buildings grew by 29 percent, while that rate was 30 percent in Pest.

Read alsoHuge change coming to the Hungarian real estate market in January?

Source: index.hu, MTI