Hungarian real estate boom: Surge in prices, population explosion and hotspot shifts revealed!

The median price per square metre for detached houses in the metropolitan agglomeration has surged by 10% over the past six months, as reported by Otthon Centrum to MTI on Monday. Let’s look at the latest figures of the Hungarian real estate scene.

This uptrend in Hungarian real estate prices is attributed to heightened demand, fueled by the enduring popularity of settlements surrounding Budapest. Gábor Soóki-Tóth, Head of Analysis at Otthon Centrum, highlighted a notable population surge of 70% of the settlements within Pest County. Over the past two decades, certain locales like Délegyháza, Telki and Pócsmegyer have witnessed a doubling in population, attributing this growth to migration surpluses, which significantly influence Hungarian real estate prices, according to Telex.

The average Hungarian real estate price per square metre for second-hand houses in the vicinity of Budapest currently stands at HUF 502,000 (EUR 1,287), reflecting a significant 10.2% increase compared to six months prior. At the district level, Vác emerges as the top performer with an average price of HUF 798,000 per square metre (EUR 2,046), closely followed by Budakeszi at HUF 745,000 (EUR 1,910) and Szentendre at HUF 651,000 (EUR 1,669).

Dunakeszi and Érd districts fall in the middle range with an average price of HUF 620,000 (EUR 1,589), while Pilisvörösvár and Gödöllő districts maintain an average price of HUF 600,000 (EUR 1,538). Notably, prices tend to decrease as the distance from Budapest increases, evidenced by the average price of HUF 291,000 (EUR 746) in the Cegléd district and HUF 255,000  (EUR 654) in the Nagykőrös district.

Photo: BKK/FB

Hungarian real estate figures

After experiencing a sharp decline in 2023, the Hungarian real estate market within the metropolitan agglomeration is now showing signs of recovery in the current year. Particularly noteworthy is the surge in housing prices south of Budapest, displacing the northwest from its previous position atop the price hierarchy.

Last year, a nationwide decrease in purchasing propensity resulted in a notable dip in relocation to the metropolitan agglomeration, leading to an 18% reduction in sales compared to the preceding year. However, this year presents a different outlook, with Hungarian real estate market dynamics indicating a potential resurgence, as reported by HVG. Prices per square meter within the agglomeration have escalated by 8%, reaching HUF 640,000 (EUR 1,641), signalling a potential revitalisation of the real estate sector.

In the initial quarter of this year, the average property price within the agglomeration reached HUF 69.6 million (EUR 178,411), marking a notable 10% surge compared to the commencement of 2023. Károly Benedikt, head of PR and analysis at Duna House, noted a cessation in the significant migration wave during the Covid period, leading to a stabilisation in the areas surrounding the capital. However, this equilibrium doesn’t extend to prices, which have resumed their upward trajectory in response to heightened demand.

Formerly, the north-western sector, spanning from the Danube Bend to Piliscsaba, held the title for the most expensive area; however, the western sector, including Budakeszi, Budaörs, Törökbálint and adjacent settlements, has now claimed the top spot with an average price per square meter reaching HUF 690,000 (EUR 1,769).

Conversely, the southeastern area, encompassing locales between Maglód and Alsónémedi, boasts the lowest average price at HUF 508,000 (EUR 1,302). Meanwhile, the southern sector stretching from Érd to Délegyháza retains a comparatively modest average price per square meter of HUF 532,000 (EUR 1,364), representing a 10% increase over the year. According to Duna House’s data, one-third of all agglomeration properties sold last year were situated in the southern sector.

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