The coronavirus epidemic had a significant effect on the Hungarian real estate market this year. The pace of price growth already slowed down last year, and in several places, prices even started to decrease. That means that there is a turning point in the real estate market in Hungary. Some experts talked about what they expect for 2021.
According to Portfolio, their prognosis regarding the Hungarian real estate market in March was accurate since they said that the decrease of real estate prices in Budapest would be around 7 pc. It seems that both the Central Bank of Hungary and the Hungarian Central Statistical Office calculate with that number. The big question is whether the trend of price decrease continues in 2021.
Portfolio concentrated on Budapest in this regard. They said that they did not expect a further decrease in the family house prices next year. Indeed, they said that the prices would increase by the end of 2021. In the case of apartment buildings, they expect a 1-2 pc decrease, which means that
rental prices will also fall until spring,
but they are going to rise again by the end of the year by 4-5 pc.
Experts say that the volume of sales in 2021 will be around 133 thousand, which will be lower than in the previous years. The government supported building new flats and houses in 2020. They reintroduced preferential VAT for building new apartments and included renovation in the extended family support program.
According to gazdasagportal.hu, OTP Ingatlanpont said that on average, one square metre in Hungary costs EUR 1,100, and if we exclude Budapest, this number decreases to EUR 781. That is because the average in the capital is EUR 1,768 per square metre.
Pest County is the most expensive in this regard among the counties, with EUR 1,113, and
Nógrád is the cheapest at only EUR 301.
In Békés, Heves, and Tolna counties, price increases are significant, around 20 and 27 pc. In the case of cities, apartments in Debrecen are currently the most expensive. Székesfehérvár, Veszprém, and Győr follow the Eastern-Hungarian city, all above EUR 1,096 per square metre. Meanwhile, in Salgótarján, this price still remained below EUR 340.
In Budapest, the downtown is the most expensive (District 5, EUR 2,580). Meanwhile, the cheapest is District 23, which is below EUR 1,096.
Source: portfolio.hu, gazdasagportal.hu