The effects of the rising utility costs can now be felt in the Hungarian housing market
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The effects of the rising utility costs can now be felt in the housing market. It is natural that amidst an energy crisis, home buyers seek energetically good housing. This also means that a smaller property needs less maintenance, therefore, people look for smaller apartments. Considering the sudden rise in petrol prices, it is also probable that people want to move into the city where the infrastructure is more developed.
In the capital, people bought properties as investments in November, while in the countryside bigger houses were sought after — reports hvg.hu. Last month, about 8,000 properties were sold, according to the estimates of Duna House. The annual average number of transactions this year is about 125,000-127,000. Demand has fallen, but smaller apartments are still popular, especially on the Buda side. About 35 percent of transactions were about apartments, between 20-60 square metres.
Current trends
On the Buda side, the average price per square metre is between HUF 900,000-1,600,000 (EUR 2,200-3,900). In more than 50 percent of the transactions, the average price of a square metre was above 1 million forints or about 2,500 euros. The number of apartments sold, that cost more than HUF 70,000,000 (EUR 170,000), has been falling on the Buda side, while on the Pest side it has increased. This is most likely because the price per square metre on the Pest side is a lot cheaper, compared to the other side.
