Hungary has seen the biggest increase in real estate prices in the EU
According to recent analyses, Hungary has the most intense price increase in the real estate market within the EU. Numerically, second-hand housing prices have increased by 20% nationwide. Meanwhile, the new property market has experienced a price increase of 21% in Budapest and 26% in the countryside compared to the same period last year.
In the last quarter of last year, the average price paid for a home in Hungary was 2.1 times higher than in 2015. Based on this,
house prices in Hungary have increased at the fastest rate in the last 7 years within the EU.
As the latest data from Eurostat reveals, Hungary is followed by the Czech Republic in second place with a two-fold increase. The third place in terms of expensiveness is taken by Luxembourg, where properties for sale are 1.8 times more expensive than in 2015.
According to the latest domestic analysis, new and second-hand housing prices in Hungary rose by 19.5% in the last quarter of last year. Such an intense price increase could only be observed before the pandemic in the second quarter of 2019. Although for a long time the Hungarian capital was the center of increasing real estate prices, now the big cities outside Budapest are also significantly affected.
This can be explained by the fact that buyers have moved away from more expensive areas to cheaper ones. As a result, house prices have risen significantly in municipalities in the countryside, where properties are available at much lower prices than in the capital.
In Budapest, the average price per m2 of new homes on the supply market in the first days of April was nearly EUR 2,908 (~ HUF 1.1 million). This means an increase of 21% compared to a year earlier. In the case of second-hand apartments in the Hungarian capital, the increase was 17%, reaching EUR 2,308 (~ HUF 873,000).
In the larger cities outside Budapest, the average price per m2 of new housing was EUR 1,946 (~HUF 736,000), which means a 26% annual increase. Meanwhile, the average price of second-hand housing rose by 28% to EUR 1,380 (~HUF 522,000).
According to an expert, the housing market is going through remarkable changes.
This is indicated by the significant drop in demand for homes for sale this year.
The reason behind this is the rising interest rate caused by inflation, thus the increase in the cost of home loans.
As the Hungarian news portal Forbes reports, the new and second-hand housing markets may diverge in the coming period. Presumably, new housing prices will rise faster than second-hand prices. For the latter, external factors unrelated to demand, such as labour shortages and rising costs of building materials, can also lead to price increases. Accordingly, the great question is whether buyers will be willing to purchase at these current price levels. Otherwise, in case of insufficient demand, investors will not build these properties.
Meanwhile, the popularity of panel housing is growing. Even though prices per square metre in Budapest increased by almost EUR 264 (~HUF 100,000) in a year, it usually takes less than 3 months to sell a panel apartment in the Hungarian capital. Based on the first-quarter data, the highest turnover was recorded in the 3rd, 11th, 13th, and 14th districts. The average price per square metre in the capital is EUR 1,760 (~HUF 666,000). However, more and more panels are offered for EUR 2,114-2,378 (~HUF 800-900,000), which means that the price of panel apartments is already the same as that of brick apartments – reported by atv.
Read alsoThis is how Hungarian real estate market is affected by the historic low of HUF
Source: forbes.hu, atv.hu
CARNAGE – growing in Real Estate Property Markets.
Layer upon Layer – the underlay – not being sold/bought – and we build on houses,flats,apartments,new hotels, new warehousing storage facilities inclusive of the renovation(s) in these sectors of the Property – Real Estate Markets.
SUPPLY of Sellers – absolutely SMOTHERING – those who are in the market to BUY.
This has been a – VEILED – factual occurance in Budapest, Hungary – post February 2020 – that the Fidesz Government, appear to have FORBIDDEN – the true major decline & impact – the FACTUAL picture – the Real Estate Property Market -its continual decline of BUYERS – and Investors – that contributes in a Major category – its effects on the Economy of Hungary.
We know – it is very much in our FACES – the Hungarian Economy – is in a STRONG downward TREND.
Ramifications – we have seen impact of the declining economic position, the weakening of the FORINT – esculating Inflation – continual Interest Rises – long list of NEGATIVES – that do factually HIGHLIGHT that the Financial & Economic outlook for Hungary – is Seriously TROUBLED.
FACT – will be REVEALED – and when it HAPPENS – the undercloth of Carnage occuring in the Real Estate Property Market – and occuring – will be HORRIFIC.
REMEMBER : those who voted the return to office of the Fidesz Political Party under the Leadership of Victor Orban – you take OWNERSHIP and Full Responsibity – for the declining state of the Financial & Economic out put of Hungary.
Hungary – our brand name – tarnished, bruised and battered – in the European Union, NATO, Great Britain and the United States of America and the wider “free” world.
Darker and Deeper Challenging times – are ahead of us – Hungary.
Oh gosh, another conspiracy theorist…sigh!!
Hungary’s pricing was low, then high, then low and now higer. It’s still far far cheaper than most capitals. You posting before!! chill or see someone..
Viva Fidesz!