Buying property: Romanians beat Hungarians
It takes more than ten years for a Hungarian to buy a 70-sqm property, provided they saved all their money. Meanwhile, that time is only six years when it comes to a Romanian. In Slovakia, the situation is worse: there, you have to work for more than 14 years.
According to liner.hu, Deloitte’s latest research shows that real estate prices increased by 21.2% in Budapest. That is Europe’s third-biggest rise, making almost impossible to buy property in the Hungarian capital. As a result, an average 70-sqm flat costs HUF 72-75 million (EUR 187,000-195,000). In Slovakia, you have to work 14 years to pay that, while in Hungary, that time is ten years. But in Romania, it takes ‘only’ six years, if you save all the money you earn.
Of course, nobody can save all their income, so, in reality, you have to work 20-30 years. That could have been reduced with loans, but considering the 9% interest rates, that option is not viable for most.
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Good news about Hungary’s economy
Moody’s has affirmed Hungary’s investment grade rating in spite of the crisis caused by the war and sanctions, the Finance Ministry told MTI late Friday. The ministry noted in a statement that Moody’s had affirmed Hungary’s Baa2 sovereign rating with a stable outlook. Moody’s delivered a positive assessment of the Hungarian economy’s return to a path of high growth next year, while the government significantly reduces the budget deficit and public debt levels, the ministry said.
The rating agency expects Hungary’s economy to grow 3% in 2024 on the back of strong exports, a high investment rate and a pickup in consumption supported by increasing real wages, it added. Moody’s pointed to Hungary’s skilled labour force, competitive tax system and developed infrastructure as factors underpinning the growth outlook, the ministry said.