Due to the high demand, real estate prices increased a lot in the Balaton region recently. New apartments on the shore go for 3,200 Euros per m2, which is shocking. However, it does not seem to reach the buyers’ psychological limit quite yet.
24.hu reports that the real estate market in Balaton started to boom again at the end of February after a dreary period in January. Even though prices are continuously getting higher and higher, the interest and high demand for new apartments around lake Balaton does not seem to decrease according to Gábor Krausz from Balla Ingatlan [Balla Real Estate].
The price of new apartments increased by 20% since last year due to the equal increase in the contractors’ expenses. Prices are also getting higher by the growing demand and the decreasing supply.
In the case of a new apartment on the lakeshore with a panorama, prices can get as high as 3,200 Euros, sometimes even more.
Even though prices are getting astoundingly high, they have not reached the psychological limit.
In parallel to the new apartments’ increasing prices, older (10-15-year-old), average quality apartments are getting more expensive as well. These apartments are being sold extremely quickly, sometimes for more than 64,000 Euros. In highly popular areas like Siófok or Sóstó, older apartments are advertised for 95,000-127,000 Euros.
Apart from apartments on the shore, properties and older flats in the heart of bigger cities like Siófok are both popular and getting more expensive as well. A 50m2 apartment in downtown Siófok goes for 1,277 Euros/m2, while properties in Siófok go for 48,000 Euros.
The vast majority of buyers are Hungarian, and they mainly purchase real estate for their own use as holiday homes, not as an investment opportunity.
However, the renting business is also booming in the region. During the main season, apartments on the shore are rented for 112 Euros per day, but bigger (60m2) and more well-equipped ones with a terrace can go for as high as 320 Euros per day.
According to Krausz, prices are not about to decrease any time soon. Moreover, new projects which will start next year or later can result in even higher prices. He predicts that
the average price of m2 in the Balaton region will reach 4,790 Euros within the next couple of years.
Of course, prices will always depend on and be influenced by the demand.
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