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