The psychological price of apartments has increased from HUF 20 to 30 million (EUR 53,657.94-80,486.90) in a little over two and a half years. Otthon Centrum (OC) has examined what kind of apartment are available for purchase for this amount of money in the capital city.
The apartments offered at the HUF 30 million threshold are popular among young couples and people taking their first steps into home ownership. Due to the dramatic increased in square meter prices in recent years, there is a noticeable demand for properties of this value. According to data from OC, in autumn 2020, the psychological threshold used to be around HUF 20 million. Currently, it is drawing close to 30 million, writes Index.
End of price hike?
According to the latest market data, the pace of price increase has lost momentum. This can be primarily attributed to rising interest rates, the inflationary environment and a decrease in purchasing power. As a result, many potential buyers are waiting, hoping for significant price reductions. There is indeed a noticeable drop in prices for family houses. However, in the case of apartments, it is only the rate of increase that is slowing.
The high inflation and deteriorating interest rates had the least impact on the prices of used brick apartments. The current price per square meter of HUF 1,017,000 (EUR 2,728.63) is 5 percent higher than the prices in the fourth quarter of 2022.
In contrast, the rise in price per square meter for panel apartments has essentially halted in the capital city. The current average value is HUF 747,000 (EUR 2,004.22), which is only 0.6 percent higher than in the previous quarter.
Only the average price per square meter for family houses has plummeted in the capital city, however by a significant rate. The average value of HUF 603,000 (EUR 1,617.86) is 18 percent lower than the average cost per square meter in the fourth quarter of last year. This represents a massive price advantage of several million forints for buyers in this segment.
What’s available out there?
It is important to note that there are striking price differences between districts. We can observe prominent differences in terms of apartment size available for thirty million forints.
With this budget in the 3rd district, one could find a 40 square meter apartment, while in the 11th district, it would be limited to 35 square meters. The same trend persists on the Pest side, where in the popular 13th district, this sum would be sufficient for a 35 square meter apartment, while in the 14th district, it would accommodate a 37 square meter apartment. In the outer suburbs of Pest, however, at least a 40 square meter, one and a half-room apartment can be purchased, and in Csepel, a 56 square meter, two and a half-room apartment can be obtained for 30 million forints.
It is virtually impossible to find a family house available for 30 million forints. Considering the average price per square meter, one could potentially purchase a 50 square meter house with this budget. However, there is a scarcity of such small family houses in the market.
If there is any available, in the 3rd district it would only be sufficient for a mere 35 square meter house, and in the outer 16th district, it would accommodate a 45 square meter house, based on the average price per square meter in those districts. However, with a bit of luck and persistent searching, it is not impossible to find a 55 square meter, two-bedroom house for this price in the 20th and 23rd districts.