Horrific price rise in real estate, food sectors in Hungary – numbers
Agricultural production costs grew by 40% in the first half of 2022. The price rise was 44% in the case of plant products, while 31% concerning animal products, the Hungarian Central Statistical Office (KSH) wrote on its website yesterday. Meanwhile, the growth of input prices in the agriculture sector was even higher, 41%. Furthermore, real estate prices also continue to increase not only in Budapest but also in other cities.
Brutal price rises in Hungary
KSH says several factors caused the drastic price rise in the agriculture sector. First, the COVID-19 pandemic affected all supply chains, and the problems remained even in the post-restrictions period. Furthermore, energy prices started to soar. Based on the calculations of the World Bank, energy prices rose by 82% in only one year. Fertilisers are also much more expensive (85%), 168.hu wrote.
To make matters worse, Russia’s war in Ukraine resulted in uncertainty in the agriculture sector. Moreover, the weather was also not optimal in Hungary. During spring, frost destroyed the strawberry and cherry yield. In summer, drought worsened the situation.
No one should expect a trend change
The price of cereals and oil seed crops increased by 61% and 59% in Hungary. The price of fruits decreased by 7.4% thanks to European deliveries. However, cherry, potato, and vegetable costs grew by 21% and 20%. The price of live animals rose by 34%. For example, the cost of chicken increased by 42% because of the bird flu epidemic.
In the case of pork, the rise was 28%. No one should expect a decrease because the price of fodder also rose by 39%. Plant protection products are also more expensive (17%), while energy costs soared by 36%, including fuel prices (26%).
Real estate prices also went up
We got used to the fact that real estate prices keep increasing in the Hungarian capital. However, that is the case also in other big cities of Hungary. Based on the latest survey of the Otthon Centrum, the average price per square metre of the newly built apartments reached HUF 862 thousand (EUR 2,173). That is a record. The increase is 24.2% compared to the 2021 Q3 figures, Piac és Profit wrote.
Two Hungarian rural cities broke the 1 million HUF/m2 record: Sopron in 2021 and Debrecen this year. New apartments cost 1.1 million HUF (EUR 2,773) per m2 in the former, and 1,05 million HUF (EUR 2,647) per m2 in the latter. The cheapest Hungarian rural city in that regard is Hódmezővásárhely: 63 thousand HUF per m2 (EUR 1,419).
Source: 168 óra, Piac és Profit
3 Comments
We know the present Difficulties challenging our day to day lives in Hungary.
This article, captures major points of grave concerns for Hungary, in the immediate Future.
The state of the Economic & Finacial “balance sheet” of Hungary – Sickly.
Inflation – factual and with Economic “traditional” real world – measures of application & analysis applied, we know, that Hungary, continues to FACE – a horrific challenge, with Inflation, that is and will continue to “bite hard” into the pockets of Hungarians.
NEVER – forget, the reported Inflation we are informed, from Government, lets sat Hungary at this time factually 21% level of Inflation, higher than what we are being “veiled” by Government informed – as the CORRECT level of Inflation. This is NOT helped by the BIG PLAYERS – who through Greed & Explotation – price “gouging” – are DRIVING inflation – cost of living – in basic day to day item “through the room” – in Hungary.
Basic – day to day items – continual price up-ward MOVEMENT – why ?
WHAT economic reasoning this past week – can be applied to the Milk we purchase – Teljes Tej 3.5% 1 liter – from my local “corner” supermarket in District 5 – Budapest – from 410 huf to 465 huf – price increase – just this week.
Prior to the Russian War – on the Ukraine – un-factual / un-sound economic of NO substance – to reason(s) being applied and used by Government, as a Major reason to price rises/inflation – my milk was = 365 Huf per liter.
Hungarians – we KNOW – what we are being CHALLENGED at this point in time – and daily sadly – “things” more in the negative are presented, adding to the list of CHALLENGES – than positives.
WHAT – when the various Price Caps – instigated put in place by the present, Victor Orban – Fidesz led Government of Hungary – become UNSUSTAINABLE – what WILL – the “mood” – the picture of Hungary be ???
Contrary – to reports and opinions circulating, principally being driven by PROPAGANDA out of the Fidesz Machine, the Hungary – European Union “conflict” – dominated by FACT – that Hungary has been found out – abusing – Contractual Laws of the Membership – as a Member Country of the European Union.
Like it or NOT – agree or disagree with it – DEMOCRACY – the practice, the embracing of it, that if you are a Member of the European Union – “core” componentry of DEMOCRACY – must be PRACTICED.
Hungary – its Flaunting, testing, non-compliance, segragated & isolated position(s) adapted – constant attitude / rhetoric – driven by its Prime Minister – Victor Orban, who leds Hungary, in a DICTATORIAL manner & practice – that is “vermonious” – REPELLANT – to the Laws of Membership, as a Member Country of the European Union.
The Hungarian – European Union – the REQUIREMENTS – that are in the form of Legal “submissions” and or “logements” – and correspondence requiring FACTUAL answers requested and PLACED on Hungary – by the European Union – is MOMENTOUS.
Hungary – from what is KNOWN – to ful-fil and OBLIGATE – to the – European Union – REQUIREMENTS – that would, in probability – see funding AGAIN provided to Hungary – these E.U. requirements – would NEED – a massive dismantling – ceasing of – the Political Ideas & Philosophy – the “Platforms ” of Law & Order – the present “style” of Dictatorial Government, exercised and practiced in Hungary – under the Fidesz Party – its Leader and present Prime Minister of Hungary – Victor Orban Prime Minister & his Government.
What the European Union are DEMANDING of Victor Orban / Hungary – is catacylsmic for the Fidesz Party.
Fidesz – the present Red Book, to re-write it IMPOSSIBLE.
Democracy is Dialogue – and No Place, in its CORE ingredients / componentry for Dictatorship.
REMEMBER ;
“When the Yoke is Broken,
The Burden, is Removed.”
The “Burden” for the FUTURE of Hungary – who do we refer ???
The Real-estate market is about to crash because of the high interest rate. Also, sellers are pricing their properties at unrealistic values.
The demand is law and properties are on the market for a very long time.
Carnage – commencing in the Real Estate Market, that has been predictable for the past 12-15 months.
Interest Rate rises continual – the “Zenith” who knows but 20% – by End of year 2022 – not out of the question.
Horrific situation will be the “bloodshed” in the Real Estate Market.