Drastic change: crisis and war overturn the prices of Hungarian apartments

Due to the energy crisis and the expensive loans, there is an increasing interest in smaller apartments. Therefore, the prices of these is getting the more expensive. And yet, larger apartments are increasingly difficult to sell.

Smaller apartments are more attractive

While everyone wanted to move to a bigger apartment during the closures due to Covid, now people prefer smaller aparments. After the introduction of utility reductions and brutal inflation, smaller Hungarian apartments became more attractive. However, these come at a cost! In Budapest, you have to pay around HUF 1 million (EUR 2363) for a square meter of apartments under 40 square meters, reports Népszava. It means you have to pay HUF 40 million (EUR 94,529) for a studio apartment in the capital. It does not matter whether the apartment is panel or brick-built. In most of the county seats, smaller apartments can be obtained somewhat cheaper: for HUF 322,000 (EUR 761,14) to HUF 938,000 (EUR 2217,25).

Read also: 440HUF/EUR by year-end? And what should we expect in 2023?

What is the case in the countryside?

In Budapest, the price advantage of medium-sized apartments is still 9 percent, but what about the Hungarian countryside? Last year in Győr, the difference was only 4 percent, but this year it is already 21. This is beacause studios in the county seat have become more expensive by 59 percent, while apartments of 40-80 square meters only by 31 percent. Last year, medium-sized apartments in Szolnok were charged 4 percent higher per square meter, this year, however, they are 17 percent cheaper than studios. In Kaposvár, the price advantage of medium-sized apartments was still 12 percent last year, and 22 percent this year. In Debrecen, Kecskemét and Miskolc, there was a difference of 9, 7 and 12 percent in the rate of price increase.

Read also: Hungarian city has to resort to brutal emergency measures due to soaring costs

Only the beginning?

On the one hand, according to the leading economic expert of Ingatlan.com, the amendment of the overhead rules has not yet caused huge changes in the domestic real estate market, reports Index. He believes this is only the beginning with more and more apartments appearing on the market. On the other hand, there is less demand which is why it takes longer and longer to sell a property. However, new or newly built, energy-saving properties are an exception.

“In the case of certain property types – for example rural, larger floor area, less modern family houses – it is already possible to perceive a slowdown in price increases, but an actual price decrease may come when the owners are forced to sell their property,” emphasised László Balogh.

Source: Népszava, Index

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1 Comment

Aerophone Instruments / Real Estate & Property Profession - SIMILARITIES : says:

02/10/2022 at 14:56

The Carnage – that has been FACTUAL – occurring in Budapest, Hungary – post February 2020 and INTENSIFIED – through the Russian War – on the Ukraine, the ZENITH of its aftermath – in the Real Estate/Property Markets – is DISTANCED.
Economy, Interest Rates, Inflation, Relationship with the European Union, Global respect & relationships, Florint devaluation, Disappearance of “widespread” Foreign Investment, – sure you can ADD to the List ///

The Real Estate & Property Profession – elementary in basics of its CARNAGE situation and explanation – that SELLERS – the on-going weight of SELLERS over Buyers – is the factual picture – inclusive of, the state of the overall CRUMBLING Hungarian economy the – REASON there is Carnage.

The piano accordion – when an instrumentalist expands its AIR intake to its Fullest.
Then, change in musical tone – the instrumentalist – PUSHES to-gether the firmament part of the accordion, with the expansive movement section, that CAUSES an immediate gush/rush intake of air – that when they – push back to-gether – pushing the AIR out – CRESCENDOS – the tone/mood of the musical piece.

Real Estate and Property Market bit likened to the fundamentals of the mechanics behind playing a piano accordion.

In Budapest, Hungary – we have seen it, the past decade say, just OPENING up its Air Intake – sucking it in.
It NEEDS releasing – and in its release, through Cataclysmic Economic & Financial circumstances occurring in Hungary – not ENOUGH room for the Air – the SELLERS in the Real Estate & Property Market – to Escape – get out of.
The Mass “Squeeze” of Air – is being Rapidly – or attempts being made to “get out off” – the oversupply of the sellers’ market and priced – Real Estate & Property Market – in Budapest, Hungary.
The musical piece played on this Piano Accordion, its Final Stanza, does not end in Triumph, but a “Depressive” sombre tone, that to consider it being Melancholic – WRONG.

The Hotel Game – new & old, under construction – INTERSTING.
It WILL be or is ALREADY – another CARNAGE.
Who will invest ?
Who will stay ?
Who will AGAIN be the Winners and the Losers?

We have post February 2020 – LOST – icons, traditions in restaurants, hotels and “other” in Budapest, Hungary – and it CONTINUES on.

Our FUTURE – the destined path we have been forced to travel, under this present Victor Ordan “Dictatorial” Government, that is NO Longer a DEMOCRACY – under the OPINION of the European Union.
Dictatorships – in TROUBLED times and God we in Hungary are in MASSIVE Troubled worsening times – history tells us just undergo “Smashing” their Population.
Citizens – we continue to get SMASHED – and its GROWING.
We NEED to THINK long & Hard – on this – otherwise, we deepen into a Perilous position.

“When the YOKE is Broken,
the Burden is Removed.”

The Yoke – the Burden answering who it refers – ELEMENTARY.