Hungarian property prices continue to surge

The analysis of ingatlan.com has revealed that the price increase on the Hungarian property market continues, as the price of new properties has increased by 14 % since last October, while the supply has extended by 30 % in the same period. The price of pre-owned properties has increased by 33 %, and that of building lands by 5 % on average, index.hu writes.

Budapest is the most expensive

The supply in Budapest was 30 % higher in October than a year before. The average price per square metre increased by 16 %, to HUF 492 000 (EUR 1 613) in a year. Budapest, where the supply of properties extended by 40 %, is the most expensive as far as the new property market is concerned.

The average price per square metre in Budapest has increased to HUF 582 000 (EUR 1 909), which means a 15 % rise compared to last year.

The price of new apartments in other bigger cities around the country also grew significantly. The average price per square metre was HUF 367 000 (EUR 1 204) in Debrecen, HUF 399 000 (EUR 1 309) in Kecskemét, and 376 000 (EUR 1 233) in Győr at the beginning of this October.

Furthermore, according to Eurostat, the prices of Hungarian and Latvian apartments increased at the greatest extent among all the European countries in the second quarter of 2016.

The price increase does not slow down

Although it seemed this spring that the pace of the price increase might slow down on the pre-owned property market, it grew at a consistent level. The average price per square metre of pre-owned apartments located in cities having more than 10 thousand residents grew to HUF 364 000 (EUR 1 194), which means a 33% increase.

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Building lands have also become more expensive

Much more moderate price increase has taken place on the market of building lands. The price per square metre of a building land was HUF 10 500 (EUR 34) at a national level in October, which means a 5 % increase compared to last year.

In Budapest, the price per square metre of building lands increased by 12 %, to HUF 32 000 (EUR 105).

Only a modest slowdown is likely to take place

According to ingatlan.com, the market of new properties will be in the focus in the future, and the supply of new apartments will grow further. The website estimates that some 15 to 20 thousand new apartments will be built by the beginning of 2018, and that the price of pre-owned apartments will keep increasing in the biggest Hungarian cities in 2017 as well, but the pace of the increase will probably slow down a bit.

According to Gergely Ditróy, chief analyst of Otthontérkép, the possible price increase in the future could be the straight outcome of prosperous economic performance, growing number of labour force creating more added value, increased long-term predictability and safety in all aspects of life and stable and growing bank lending.

edited by Gábor Hajnal

Source: http://index.hu/