Hungarian real estate business -Settlements of the Budapest agglomeration thriving

The number of people living in the towns and villages of Budapest’s agglomeration increased the most out of all the settlements in the country in 2019. Érd is at the top of the national list, where the number of registered residents increased by almost 800 people, Szigetszentmiklós took second place, followed by Veresegyház. Both settlements grew by more than 500 people. These towns are favourite targets of the real estate market because the square metre prices of residential properties are lower than average. For example, a house of 100 square metres costs 16−30 million forints less than in Budapest.

The latest official analysis of ingatlan.com reveals that population changes also affect the housing market. They examined population growth in each settlement at the beginning of this year and how real estate prices in the most popular settlements changed compared to the trends in Budapest, Vg wrote.

Considering the country’s total population, the number of people living in the settlements of the Budapest agglomeration increased the most, including moving and natural growth, i.e. the number of births,

said László Balogh, the leading economic expert of ingatlan.com. The top10 list includes the following towns and villages: Érd, Szigetszentmiklós, Veresegyház, Dunaharaszti, Gyömrő, Nagytarcsa, Halásztelek, Délegyháza, Göd and Biatorbágy.

László Balogh further added that

the housing market boom in recent years and the Budapest price explosion also play a role in the development of agglomeration settlements. The end of 2019 saw an increase in the number of constructions of family or semi-detached houses due to the reduced VAT on housing construction and state subsidies.

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Hundreds of thousand forints cheaper per square metre

According to official data, the population of Érd increased by 775 people in one year, bringing the total population close to 70,000. The population of Szigetszentmiklós increased by 513, so the city started the current year with a population of almost 40,000, and the community of Veresegyháza increased by 503 in one year.

Agglomeration settlements are attractive destinations because real estate and land prices are lower than in the capital.

Another determining factor is the higher percentage of green space coverage, which can make these settlements even more attractive after the end of the coronavirus pandemic.

Settlements and prices

House prices are much lower in the ten settlements listed above than in Budapest. At the end of April, the average price per square metre in the capital was 704,000 forints, 156−296,000 forints more than the typical supply price in the towns and villages of the Budapest agglomeration. Therefore, the level of average square metre prices registered in these settlements constituted only 58−78% of the average level in the capital. Délegyháza had the lowest square metre prices, with 408,000 forints per square metre.