Estate prices doubled in the inner districts of Budapest
According to magyaridok.hu, estate prices in the inner districts of Budapest rose by more than 30% since 2015, which indicates that the total increase could even reach 80% compared to the start of the flourishing of the market. Currently the price growth of new apartments is the most significant factor, which results in a demand for small, but newly built estates.
Hungarian estates cost 17% more in 2016 than the year before. As a consequence of the uprise that started in the second quarter of 2014 – three years after the tipping point – apartments cost one and a half times more. The biggest increase characterises the Central Hungarian region, where prices grew by 20%, while this rate is 10% in the southern part of the Great Hungarian Plain and in North Hungary.
The growth exceeded 22% in Budapest, but the differences are quite big in the capital city. Estate prices grew by 1/3 in the 7th district, and by 25-30% in the 6th, 9th, 1st and 5th districts. The outer districts are characterised by a growth rate of 10-15%. Compared to the hollow point of 2013, apartments cost 80% more in the 7th and 5th districts, while they cost 70% more in the 6th district. According to FHB’s apartment price index analysis, the handover of 4,600 apartments is expected in condominiums of at least four apartments this year, while this number could even exceed 8,000 in 2018. However, there are many postponements, so certain projects will only be finished by the next year.
Based on the analysis of Balla Ingatlan, a change is happening on the market of new apartments, and the demand is shifting towards smaller estates. The main reason behind this is the price growth. Since newly built apartments are getting more and more expensive, many people switch to buying smaller apartments. According to executive manager Ákos Balla, if you choose a newly built apartment early on, you’ll get it for cheaper. Prices won’t be lowered, even though the supply is constantly expanding. On the contrary, building expanses are constantly growing due to the serious lack of workforce.
Based on the predictions, the price growth also continues on the market of panel houses (block of flats). The price of these has grown by 20-25% in the last year in several industrial cities. The increase was even greater than the country average in Tatbánya, Kecskemét, Szolnok, Eger, Nyíregyháza, Szeged and Pécs, but this will be unsustainable in the rest of the year.