Hungarian real estate prices show a record increase in Europe

The Hungarian real estate market has experienced a notable revival in 2024, reversing previous years’ downturns. Data from the Hungarian Central Statistical Office (KSH) shows a 36 percent increase in home sales. With the overall house price index reaching 291 percent of the 2015 base, Hungary leads the EU in housing price growth, highlighting a significant recovery and ongoing expansion in the market.

Hungarian real estate market in recovery

Economx reports that the Hungarian real estate market has shown remarkable signs of recovery in early 2024, following a downturn in previous years. According to the Hungarian Central Statistical Office (KSH), the number of homes sold increased by 36 percent in the first quarter of the year, reversing a 23 percent decline from the previous year. This resurgence comes with a notable price hike, with existing house prices rising by 5.3 percent and new house prices by 4.6 percent quarterly. The price increase was widespread, except for detached houses in eastern Hungary, where no significant change was observed.

Substantial growth

In 2023, the housing market saw a slower price increase, yet the overall house price index reached 271 percent of the 2015 base. Despite consumer price inflation outpacing nominal house price growth last year, leading to a 9.4 percent decrease in real prices, the first quarter of 2024 marked a significant shift. Real prices of existing and new dwellings were up by 4.0 percent and 3.4 percent quarter-on-quarter, respectively, and rose by 4.4 percent and 10 percent year-on-year. As of early 2024, the real price of existing houses stood at 74 percent above the 2015 base, while new homes were 111 percent higher, highlighting a substantial recovery and growth in the Hungarian real estate market.

Insane price per square metre

In the Hungarian real estate market, new housing prices have surged, increasing threefold since 2015, compared to a doubling in construction costs. In 2023, the average new home price rose to HUF 62 million (EUR 156 thousand) and further increased to HUF 65.8 million (EUR 166 thousand) in early 2024, with the price per square metre nearing HUF 1.2 million (EUR 3,020). Existing dwellings also saw price rises, with the average price reaching HUF 31.4 million (EUR 79 thousand) in early 2024, up from HUF 29.2 million (EUR 74 thousand) in 2023. In Budapest, the average price per square metre for existing apartments increased to HUF 918,000 (EUR 2,310).

Photo: Alpár Kató / Daily News Hungary

One of the biggest growths in Europe

In the first quarter of 2024, the Hungarian real estate market saw significant growth, with the aggregate house price index rising by 5.2 percent. This increase places Hungary at the top among EU countries, with house prices nearly 291 percent above the 2015 base, according to the Central Statistical Office (KSH). Across the EU, the aggregate housing price index stood at 149 percent of the 2015 base, with a modest 0.4 percent quarterly rise. Other countries like Bulgaria and Poland also experienced notable price jumps, while Denmark and France saw declines. Hungary’s domestic price increase of 290.7 percent is unparalleled, with Lithuania (227.7 percent) and the Czech Republic (214.3 percent) trailing behind.

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2 Comments

Citizens - Don't be FOOLED : says:

06/08/2024 at 12:31

Trepidation.
This article is Flimsy.
It is in FACT insubstantial in that it does NOT communicate to readers the ENTIRE country of Hungary – the “questionable” claim(s) that “real estate prices show record increase in Europe”.
Budapest, has 23 Districts.
Of the 23 Districts – per district this “claimed” reversal over 2023 figures of real estate sales – DISCLOSE by district being 1st July 2023 to 30th June 2024 = 12 months period.
(1) – comparative property sold to June 2023 to June 2024
(2) “mean” sale price 2023 against 2024.
BREAK the 23 Districts DOWN.
THEN our LARGE cities and “other” regions – BREAK them down.
This “claimed” record – it’s IMPACT force – the “guts” the center of it – where has it “claimed” to have HAPPENED ???
Where in Hungary – has it HAPPENED ???
Hungary still the highest INTEREST Rates in Europe.
Hungary – the highest Vat.
Hungary – our CURRENCY under gargantuan pressure – going LOWER.
Hungary – an Economic & Financial – growing “Time Bomb” – nearing EXPLOSION.
Hungary – our Orban led Fidesz Government – BROKE with NO capacity to make INVESTMENTS into Hungary.
Hungary – our Orban led Fidesz Government – DEBT riddled – through BORROWINGS – Government Debt – rising.
Hungary – rising FACTUAL inflation – nothing, absolutely nothing is going to get CHEAPER in Hungary.
There is a HIGH probability of “manipulated” – PROPAGANDA – impacting and INFLUENCING media could be TELLING media what to REPORT, being “Spewed Out” to all Hungarian citizens and into Europe, that is just, call it – FALSIFICATION of Fact.
Orban, the Fidesz Government – there HISTORY of being the DOCKER’s – the “Veiler’s” of FACT.
WHO – this claim of a “rebound” in the real estate market in Hungary – who are the INVESTORS ?
In answering this question – it will not be WESTERN Investors.
WHO is it then ??? – if this CLAIM of a “rebound” is FACT.
Statistically – throughout the entire map landscape of Hungary – the increasing numbers of SELLERS of real estate property over the NUMBER of Buyers – of “serious” interest – is totally DISPROPORTIONED which is an on-going recipe for a DISASTER.
We build on and on but WHO will be the INVESTORS – the Buyers ???
Proud Hungarian American says:

07/08/2024 at 22:57

In response to citizens don’t be fooled’s comment – clearly, YOU are a fool. Go live somewhere else if you don’t like Orban the ELECTED government which values it Hungarian culture and country above your socialist and ignorant views. If everything is such a disaster, why are you still there? Talk is cheap.