Budapest’s real estate market set new record in October

Budapest’s real estate market witnessed a record number of homebuyers purchasing for investment purposes in October. The effects of the recent restrictions on short-term rentals can already be felt. Thus, there is a slight shift in the top preferred areas in Budapest. Rental prices seem to stabilise.

Budapest’s real estate market sees new record

As Telex reports, Budapest’s real estate market experienced robust growth in October, with Duna House estimating 10,738 property transactions—a 10% increase from the previous month and a significant 37% rise compared to the same period last year. This surge, driven by strong buying and selling activity, suggests an active period ahead for both the real estate and mortgage markets. Investment in Budapest has hit a new high, with 40% of buyers purchasing properties for investment purposes, spending an average of HUF 58.7 million (EUR 143,000) per transaction.

The top areas

Budapest’s real estate market has seen notable shifts in recent months, with districts on the Buda side, particularly Újbuda and District 2, attracting increased interest. However, District 13 is currently the top choice for investors, capturing 19.4% of buyer interest. The recent restrictions on short-term rentals, such as Airbnb, have further decreased demand in central areas like Erzsébetváros and Terézváros. This policy change has been advantageous for prospective residents but poses challenges for property sellers in these districts.

Current trends regarding the pricing

In terms of property prices, Budapest’s real estate market continues to climb. October data shows double-digit annual growth in the capital’s panel flats, where sellers remain firm on guide prices, allowing only 2-4% room for negotiation. Buyers paid an average of HUF 873,000 (EUR 2,130) per square metre for factory apartments in Buda, while similar units in Pest were slightly lower at HUF 773,000 (EUR 1,886).