Hungarian sea in trouble, rising property prices and no labour force

Since 2015, property prices have risen by 90 per cent everywhere, up to 200 per cent in some places. The average price per square metre, for both apartments and houses, has risen for both new and second-hand properties. The most popular settlement was Balatonfüred. A problem for this popular tourist destination is the lack of labour force. Many restaurants are unable to open.

Brutal property prices at Lake Balaton

Even during the economic crisis of 2008-2009, prices in Balaton municipalities did not decrease. Moreover, since 2014, prices for both apartments and houses have been rising steadily.

Prices have increased the most in Fonyód, Balatonfüred, Balatonalmádi, and Siófok.

In 2021, average house prices rose by 10.4 per cent compared to a year earlier, portfolio.hu reports. The price of second-hand homes per square metre was between 205 and 637 thousand forints in 2021. The most expensive properties were in and around Balatonfüred, while the cheapest were in Nagykanizsa.

In Csopak, Hévíz, Siófok, Balatonfüred, and Zamárdi, the price per square metre for new apartments was all above HUF 500,000. The trend is similar for second-hand properties. In 14 municipalities, the average price of second-hand properties was above HUF 30 million.

Housing prices are strongly influenced by proximity to the waterfront.

The closer the property is to the Hungarian sea, the higher the price per square metre. Analysts say that the upward trend is unlikely to slow down in the coming period.

Fewer restaurants due to labour shortages?

Like last year, in 2022, the restaurants of Lake Balaton are in a difficult situation, writes nlc.hu.

There will be a shortage of waiters and cooks in restaurants during the summer season.

Shortages are reported in almost all labour markets. Not only restaurants but also hotels complain about staff shortages. According to the president of the Hungarian Hospitality Industry Association, workers expect too much pay. “There will be those who will not even be able to open because they no longer dare to take on these costs and pass them on to their guests. I know of a restaurant in Western Hungary that closed after 39 years because it was unable to solve the labour problem,” said László Kovács.

Rising prices for raw materials, energy, and workers’ salaries could also lead to price increases in the catering sector.

Source: nlc.hu, portfolio.hu