Immense positive turnaround in Hungarian property market

We have good news for those planning on investing in real estate in the Hungarian capital: the price increase of newly built properties has stopped. The Hungarian real estate agency Otthon Centrum recorded a mere 1.3 percent increase in the last quarter, after last year’s extreme price rises. The analysis also showed that the price gap concerning average property prices between districts has never been so wide.

Average property prices increased by only 1.3 percent

The average price per square metre of apartments offered in new construction projects is currently HUF 1.592 million (EUR 4,268). That represents an increase of only 1.3 percent compared to the previous quarterly survey, said the head of analysis of Otthon Centrum, summarising the new housing market in the capital, as reported by Pénzcentrum.

Head of analysis Gábor Soóki-Tóth said that on a year-on-year basis, prices per square metre are 12.2 percent higher today than in the same period last year. This is mainly due to last year’s extreme price increases. In Budapest, the average price per square metre varies between HUF 932,000 (EUR 2,498) and HUF 3,081,000 (EUR 8,259).

“There has never been such a price difference between districts before,”

the expert said.

338 new projects; most expensive districts in Budapest are the same

According to a June survey by the Otthon Centrum, 338 new housing projects have been launched in Budapest. 26,700 apartments are being built and developers are offering an average price of HUF 1.592 million (EUR 4,268) per square metre. These figures are broadly in line with the previous quarter. The number of projects increased by 2.4 percent, the number of apartments by 1 percent and the price per square metre by only 1.3 percent.

The order of the most expensive districts is the same as in the previous quarter. District V continues to lead the way with an average price per square metre of HUF 3.081 million (EUR 8,259). It is followed by District II with a unit price of HUF 2.99 million (EUR 8,015). District XII is third on the price list with a price per square metre of HUF 2.90 million (EUR 7,774). In fourth place is District I with a median price of HUF 2.64 million (EUR 7,077) per square metre. The only other district with an average price per square metre above HUF 2 million is District VI, with an average of HUF 2.13 million (EUR 5,710).