Buyers shocked: Budapest property market gone crazy, price of second-hand flats sky-high
The Hungarian real estate market has experienced an unbelievable surge in prices, particularly in Budapest, where the average price of used apartments is nearing HUF 100 million (approx. EUR 250,000). This trend is largely driven by an increase in demand that has outpaced supply, leading to substantial price hikes across the country.
Budapest leads the price increase
According to ingatlan.com, in February, Budapest saw the largest price increase, with a year-on-year rise of nearly 17% and a month-on-month increase of 4.4%. The average price per square meter for used apartments and houses in Budapest reached HUF 1.24 million (EUR 3,100) by early March, indicating a robust market. The X district has an average price of HUF 975,000 (EUR 2,430) per square meter, while outer districts like XV, XVI, XVII, XVIII, XIX, XX, XXI, and XXIII offer prices between HUF 767,000 and 922,000 (EUR 1,915 and 2,300) per square meter, which can be considered relatively low in the market right now.
The average price of used apartments in Budapest is now close to HUF 97 million (EUR 242,000), with the overall average for all types of used residential properties reaching HUF 108 million (EUR 270,000). However, districts like XX and XXIII offer more affordable options, with average prices around HUF 55 million (EUR 137,000) for used apartments.
National trends
Nationally, the price increase was less dramatic but still significant, with a year-on-year rise of 10.4% and a month-on-month increase of 2.4%, ingatlan.com reported. Regions such as Southern Transdanubia, Northern Great Plain, and Southern Great Plain experienced higher price increases than the national average, with each seeing an 11.2% rise. In contrast, areas like Pest County, Central Transdanubia, Western Transdanubia, and Northern Hungary saw more moderate increases ranging from 4.8% to 7.3%.
Mismatch between supply and demand
The surge in prices is attributed to a mismatch between supply and demand.
Despite an increase in listings, the demand has consistently absorbed these offerings, leading to a reduction in available properties and subsequent price hikes. This dynamic is particularly pronounced in Budapest, where the demand far exceeds the supply, driving prices upward.
Other important markets
Outside of Budapest, cities like Pécs, Debrecen, Kecskemét, and Szeged remain significant due to their large supply of properties. For example, Debrecen has the highest average price per square meter among county seats at HUF 924,000 (EUR 2,300), while Pécs and Szeged offer prices of HUF 732,000 and 836,000 (EUR 1,830 and 2,090), respectively.
On the other end of the spectrum, cities like Salgótarján, Békéscsaba, Kaposvár, Miskolc, and Szolnok are among the most affordable, with prices ranging from HUF 282,000 to 485,000 (EUR 700 to 1,200) per square meter.
In essence, the Hungarian real estate market, particularly in Budapest, is experiencing a period of rapid price growth driven by high demand and limited supply. While this trend presents challenges for buyers, it also highlights the potential for investment in the sector.
Read more news about the Hungarian real estate market HERE.
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