Here is the first sign of the drastic change in Hungary’s property market
As we wrote earlier, the golden age of the Hungarian property owners may end soon after the energy and economic crisis hit Hungary hard. Based on the latest statistics, buyers disappeared from the market of the building sites. In the first three quarters of this year, their number fell by 10 percent. As a result, their price rise decreased to only 2.5 percent compared to Q1-Q3 of 2021, according to the latest statistics of Otthon Centrum, the greatest Hungarian real estate agency.
The agency says that the trend turn is not surprising. The number of purchasers decreases because of the worsening economic situation, which keeps demand low. They added that building site prices keep increasing, but the growth rate declined by 2.5 percent. It means the average price per square metre in Hungary is 10,800 HUF (EUR 27), 168.hu said.
The Otthon Centrum recalled that in 2021, the price of the building sites for family houses grew by 30-50 percent. Furthermore, the commercial traffic in that segment was 20 percent higher than this year. Of course, the differences are significant in the case of the different localities. In Budapest, the average sqm price of family house building sites was between HUF 60 and 80 thousand (EUR 150-200) in 2021. Meanwhile, in the municipalities, the differences were even higher. In Debrecen, the average was HUF 28,000 (EUR 70) per sqm, while in Szombathely, near the Austrian-Hungarian border, that sum was only HUF 13 thousand (EUR 32). In Kecskemét, Central Hungary, it was HUF 8 thousand (EUR 20), while, in Zalaegerszeg, which is at the end of the list in that respect, it was only HUF 2,500 (EUR 4.5) per sqm.
The statement of Otthon Centrum mentions the smaller localities. In that market segment, only the building sites close to water (lakes, rivers) are above HUF 10 thousand (EUR 25) per sqm based on the data of the first nine months.
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Napi.hu, a Hungarian economy-focused website, writes that the number of property advertisements is rising in Hungary. At the beginning of November, there were 8,900 on ingatlan.com, which is a 19 percent increase compared to last year’s 7,500.
The once overheated property market of Hungary seems to be cooling down currently. Only the prices of the newly built apartments increased last month. All other categories showed signs of stagnation. The average sqm price of properties in Budapest stands at HUF 1.18 million (EUR 3,000), a 29 percent rise in 2022.
Read alsoHouses are advertised en masse in small Hungarian villages – who will buy them?
Source: 168.hu, napi.hu
Ofc properties are expensive.
Most of them are sold by OTP and they set the prices.
Even the properties where the home itself has to be bulldozed has a huge price tag.
Which is disgusting if you ask me.
Paying 10m ft for a mud house which does not even have a concrete base hence no way to insure it and is about to collapse is fucking criminal.
Not even the plot is worth that much..
✔️
The Carnage that is escalating in the Property Market – Real Estate Market and the Building Construction game, in Hungary, will end in a Cataclysmic DISASTER.
Thousands of Hungarians are going to get Financially burnt, in many cases Financially destroyed – across all the componentry’s of these industries.
Post February 2020 my platform has REMAINED that the ratio of sellers over buyers, the down turning of the Hungarian Economy, the Russian War on the Ukraine and the disappearance of investors – all major factors WHY there is growing CARNAGE in Property/Real Estate and Construction Industry.
Its ugly and worsening – and the SAVIOURS – will not be this present Government, under the “dictatorial” leadership of Victor Orban, who HAVE been major contributors over time, that factually sees us in this position of a collapsing economy, that the “worth” of assets, in the case of this article Property, will be OBLIVIATED and Smashed in Devaluation.
Hungary:
“When the Yoke is Broken,
the Burden is Removed.”
To whom do I refer as the Yoke and the Burden?