In western Hungary, the average price per square metre of panel flats rose to HUF 814,000 in April this year, marking an annual increase of nearly 30 per cent and making the region the fastest-appreciating panel housing market in the country, Duna House said on Monday, citing its sales data in a statement to MTI.
Devastating price rise in Western Hungary
Péter Szegő, the firm’s chief analyst, noted that while a gradual convergence has been under way in western Hungary’s panel market for several years, the pace of change has accelerated markedly over the past 12 months. The shift is evident in the fact that, whereas last spring panel flats in the region were still cheaper than in eastern Hungary, prices have since overtaken those in the east, the Hungarian News Agency wrote.
According to Duna House, the average price per square metre for panel flats in western Hungary stood at HUF 628,000 in April last year, slightly below the HUF 653,000 recorded in the eastern part of the country. A year on, however, western prices exceed those in the east by 16 per cent.
By the end of last year, prices in western Hungary had already surpassed the HUF 750,000 threshold, and throughout this spring they have remained consistently within a range of HUF 750,000 to HUF 815,000 per square metre.
In the East, the price rise is more moderate
In eastern Hungary, by contrast, the average price per square metre rose from HUF 653,000 to HUF 702,000 between April last year and this April, representing annual growth of 7.5 per cent. While still notable, this increase is markedly more subdued than the pace observed in the west. The disparity suggests that prices in western Hungary are being driven primarily by regional supply constraints. The availability of well-maintained, favourably located panel flats remains limited, meaning even modest increases in demand can have a pronounced effect on prices.
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As prices have risen, so too has the scope for negotiation on the western panel market. The average discount from asking price stood at around 3 per cent in April last year, but had reached 5 per cent by this April. According to Duna House, this is a typical feature of rapidly rising markets, where sellers’ expectations often run ahead of buyers’ actual purchasing power.
The time required to sell has also shortened: in western Hungary, panel flats changed hands in an average of 74 days this April, down from 78 days a year earlier, indicating that properties continue to find buyers swiftly despite higher price levels.
Mr Szegő added that the data point to a market in which strong demand coincides with constrained supply—a combination that can sustain elevated prices over the longer term, particularly for more affordable housing types supported by the government’s Otthon Start scheme.
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