Housing crisis: Home-ownership virtually impossible in Budapest

The real estate boom in Hungary has been growing in recent years, which is why prices in the millions of square metres are not uncommon in the capital. Based on Q1 2022 data, Budapest continues to have the highest house prices in Hungary. The average price per square meter of real estate in the capital now stands at HUF 810,000 (EUR 2,181).

However, the price gap between rural cities and Budapest has been narrowing. Cities like Veszprém and Debrecen are witnessing significant increases in property prices. Nevertheless, the expectation is that the price gap between the capital and other parts of the country will persist in the coming years, writes Pénzcentrum.

Local differences

District V remains the most expensive district in Budapest, with an average price per square meter of HUF 1.16 million (EUR 3,120.93). Other expensive districts include I, II, and XII, where the average price per square meter exceeds HUF 1 million (EUR 2,690.45).

On the other hand, the cheapest district is XXI, with an average price per square meter of approximately HUF 598,000 (EUR 1,610). This price disparity between the most and least expensive districts amounts to a factor of 2.3.

Considering the average net income in Budapest, which currently stands at HUF 422,000 (EUR 1,136), it is interesting to examine how long it would take to purchase a property in different districts of Budapest. Assuming one can save 100 percent of their earnings and buy a property at the average price per square meter, the results indicate that owning a property outright is virtually impossible.

In districts such as V and I, it would require 19 and 18 years of salary, respectively, to afford an 82-square-meter property. In districts II, XII, and XI, the required savings period is 17, 17, and 16 years, respectively. The cheapest district, XXI, necessitates 10 years of savings, while districts XXIII and XX require approximately 10 years each.