Boost to be expected on the Budapest housing market

While the prices seem to have come to a sudden halt in some of the districts of Budapest, in others they continue to rise. The number of transactions on the real estate market recalls the years before the economic crisis; the number of sales could be boosted by the market of the newly built real estates, Origo.hu reports.

The prices of the real estates in Budapest climbed 20% over a year, in 2016. There are only a few other markets in Hungary which produce at least slightly similar prices as the capital city. Origo.hu informs that, while one square metre of flat costs 1538 Euros in average in Budapest, there is no higher average price per square metre than 1290 Euros elsewhere in the country, except for two regions around Lake Balaton.

There are huge differences not only within the country but also within the capital itself. The Inner City is the most expensive: one square metre may be over 2258 Euros, and it is increasing rapidly. Meanwhile, in other districts, prices seem to come to a halt. Moreover, in some cases, prices have slowly started to fall, Origo.hu admits.
The improving of the financial situation of the population, better employment opportunities, wage-increases, cheap loans and state-aids also contribute to the raising demand. Besides, investors are also present on the market.

Huge differences are to be expected in the demand in 2017. Investors can meet the demands of the market of newly built flats only years later. Thus, in the last few years, the range of choices was not so wide; mostly renovated flats were availible for people demanding newly built real estates.