Hungarian real estate price increase higher than anywhere in Europe
According to the latest statistics of Eurostat, the price of Hungarian properties increased the most compared to 28 other European countries, szeretlekmagyarorszag.hu reports. There are also significant differences regionally; the price of an apartment in Budapest equals that of five properties in Nógrád county.
Property prices in the third quarter of 2016, when compared to the prices of the period a year before, have increased by 11.6%, which far exceeds the 4.3% average in the rest of the EU. The only other countries to report a more than 10% increase are Latvia and Iceland.
Compared to the previous quarter, Hungary fares much better with a 3.4% increase, and in the period since 2010, the countries of Northern Europe and the Baltic region take the lead: for instance, Estonia’s property prices have increased by 67%. In this comparison, Hungary is in the middle of the list with a 20% increase in the past 6 years.
While the increase in 2015 affected the entire real estate market, last year’s changes showed significant differences in various regions of the country. Property prices in Budapest increased by 20%, those in county cities increased by 10%, while villages experienced a 15% drop.
The biggest price growth was seen in the case of housing estate properties, whose national average is over 200 thousand forints/m2. While flats got more expensive, detached houses lost 10% of their value in the first nine months of the year, due to the fact that these properties are located in county towns which are less popular with investors. In certain regions such as Pest county, oversupply has also contributed to price drops.
The country average of 260 thousand forints is divided rather disproportionately: the price for a square metre is five times as much in the capital as it is in Nógrád county, where real estate can be purchased for 70 thousand forints per square metre.
Nominal prices have broken the 2008 record, making this the most expensive period for real estate the country has ever experienced. However, when it comes to real value, with the exception of Budapest, property prices are still far from those in 2008, and compared to incomes, the prices are reminiscent of the 1998-1999 period.
Copy editor: bm