Hungary broke EU record in real estate price rise!

The prices have doubled in the past five years.

Hungarian real estate prices do not seem to decrease at all. If anything, they become more and more expensive over the course of years. In the period of five years, the prices have doubled. – writes Portfolio. Only in Turkey did real estate prices show a higher increase than in Hungary. Since 2015, real estate prices increase at a faster pace than rent.

Compared to 2015, in the third quarter of 2021, the price of real estate was 39% more expensive, while rental prices were only 9% higher in the European Union. In 15 countries out of 27, the real estate prices got more than 50% more expensive. Hungary marked the highest in terms of price increase, as the prices got 104% higher.

Hungary is followed by the Czech Republic with an increase of 89% and Luxembourg, where prices are 73% more expensive. Italian real estate did not get too expensive. In the country, real estate prices got as little as 4% higher. Cyprus shows a 6% increase, while in Finland the rise is 11%.

Rental prices got higher as well.

After the price drop back in 2020, prices started to increase again. In December, rent was HUF 157,000 (EUR 440) on average. This increase does not seem to stop. If tourists return to Hungary then Airbnb real estate will be in demand. This can affect rental prices in Budapest and the price of rent will be the same as it was before the pandemic. Rent could reach HUF 170,000 (EUR 476) on average, as we formerly wrote. Portfolio also writes that rental prices have gotten 20% higher since 2015. Only Turkey showed a bigger increase. On average, rent became 9% more expensive in the EU, but it surpassed that increase in Hungary. In Switzerland, prices got only 1% higher. In Greece, the increase was 2% while in Cyrpus 3%.

The price increase, however, does not hold people back from buying a new home. Even though the price of construction materials got higher as well, due to the bank loans, many people still decide to buy a new home. This does not seem like a bad idea, as the price of rent could go to the bank, so instead of paying the landlord, people can pay back their loan. Some people buy real estate as an investment, as well.

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Source: Portfolio, DNH