Hungary has the third-highest real estate prices in the EU
Both rents and house prices have shown a sharp increase in the EU in Q2 2021: rents went up by 1.3% and house prices by 7.3%, compared to Q2 2020. Compared to 2010, real estate prices increased more than rents in most countries, and Hungary is among the top three countries with the highest rises.
According to Eurostat’s latest report, house prices and rents increased at almost the same rate in the EU between 2010 and Q2 2011, but after that period, a significant diversion can be observed. While rents rose steadily throughout the period up to Q2 2021, real estate prices fluctuated considerably.
After a sharp decline between Q2 2011 and Q1 2013, house prices remained by and large stagnant between 2013 and 2014. This period was followed by a rapid rise in early 2015, and since then, house prices have increased at a higher rate than rents, as illustrated by the chart below:
Source: ec.europa.eu/eurostat
Between the beginning of 2010 and the end of 2017, both house prices and rents increased by 10% in the EU, but
by Q2 2021, rents rose by approximately 15%, and house prices per square metre by 34%, writes Hvg.
If we examine the Member States individually, house prices increased in 23 EU countries and decreased in only 4 countries (Greece [-28%], Italy [-13%], Cyprus [-8%], and Spain [-3%]).
How far can real estate prices in Hungary increase?
Worrying data – Hungary tops this sad EU ranking
Since 2010, real estate prices almost doubled in Latvia and more than doubled in Estonia (+133%), Luxembourg (+111%), and Hungary (+109%).
When considering the EFTA Member States, house prices rose the highest in Iceland, by approximately 140%.
Rents, however, showed less significant growth and a slightly different pattern. When comparing Q2 2021 with 2010, prices increased in 25 EU Member States and decreased in 2 (Greece [-25%] and Cyprus [-3%]). The top 3 countries with the highest rises were Estonia (+142%), Lithuania (+109%), and Ireland (+66%).
Source: ec.europa.eu/eurostat
Read alsoUnique rise in real estate investment volume in Hungary!
Source: ec.europa.eu, hvg.hu, mnb.hu
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4 Comments
Major reason for this, previuosly used this forum to give explicit and detailed of reasons – is Foreign Investors.
The past (10) ten years – the Property Market – encumbancing all catagorys of it – has been “rocketed” to the DANGEROUS levals we witness to-day by – Foreign Investment.
The strategy of Foreign Investment into the “broadsheet” of the Property Market in Budapest and throughout Hungary – has not been centrally focused on pushing propertys to live in – but to Rent them out – to those who wish to take tenancy.
There is and will remain for a considerable period of time – EMPTY – propertys across – all catagorys of the property market – through – OVERSUPPLY.
The term oversupply explained is – not enough citizens or businesses to take up lease agreements – in the excessive high number of propertys for Rent.
Housing & Apartments same “infection” – oversupply of new or renovated propertys = and not enough BUYERS.
This will not ease – as we continue to build Flats,Apartments, Hotels and Renovate older style apartments.
The sellers Market is FLOODED.
This is a SOLID reason – why FACTUALLY – the Levals we see at present = economically are Grossly Inflated and in need of an Adjustment – in line with the OVERALL – Economic and Financial Performance of Budapest, Hungary – at present and over the next 5 to 10 years.
The Government must do greater work – in creativity – to encourage entise the YOUNG of Hungary – the FUTURE of Hungary – to INVEST in Property.
THe Government MUST -lLook after the young – the Future of Hungary – give to them – FAIRLY – to Invest into the Future of Hungary – for them and there Future Lives.
The (3) three countrys that have through Investment into the Budapest, Hungary – Property Market – “exploded” the prices are in this order ;
(1) – Chinese.
(2) – Vietnamese.
(3) – Germany.
Not GOOD = for the overall long term of Hungary – nor its young – there Future.
What this article makes for LAUGHABLE reading – is when you look at the list of the countrys that make up the European Union – 27 member states – and then read this article that headlines – “Hungary has the third highest – real estate prices in the EU” – it is Laughable and grossly WRONG – in the context of its Publication.
Norbert – it what he wrote gives an accurate explanation of what has and continues to occur in Budapest, Hungary in the various components that come under the banner of The Property Market profession and landscape in Budapest, Hungary.
It is TRUE – the soils and land – going back in History – that once were ours Hungary – our names – of title and ownership have been seriously Obiliviated – Removed – by the dramatic number, approved by the present Government of Hungary – of the ability and process under – which has HAPPENED – under Foreign Investment.
It sickens me.
It needs – URGENTLY – Rightened.
Hungary first – the young those who want see there Future by investing into Property.
The Government must – bend over backwards – and encourage make available Facilities – greater than at present – that economically allow or permit – the YOUNG of Hungary – to get in and Invest in Property.
If the present Government – FAIL – to grow in its GIVING & PROVIDING – to the YOUNG of Hungary – let them SEE – they are able to get a FAR Deal that is supported by a Government – and enter buy into the property market, if the Government is deemed to FAIL this process – the YOUNG – will depart our Boarders.
Hungary – can ill afford the rapid shrinkage it is EXPERIENCING – in population numbers.
Death ratio to new born – the winner is – Death.
We live in an Ageing Population – not a Healthy Medicine for our Future.
Hungary first – born and breed Hungarians – from all “stationsi n life” – FIRST – FIRST – FIRST.
Cessation must be URGENTLY actioned on – to cease Foreign Investment – in particular into the Property Market landscape.
Hungary – First in particular providing for our YOUNG – they are our FUTURE – from “all stations in life”.
EU out of Hungay. Stay away from all just LEAVE me and my people. GO Norbert and Nathaniel. I heard Soros own 24% or property in Budapest and buying for muslim and Chinses. STOP.
11 years ago you could rent a studio for 50k huf a month. You could buy a 1 bedroom apartment in Budapest for million huf. That’s like 40k euro. Hungarians had lower salaries, but now there are numerous incentives to young parents, older couples saved enough to buy for their kids, people eventually started buying. No wonder prices rocketed, everybody knew it was a question of time. Its no surprise prices doubled.
In addition, HUF was around 280 against euro then now 360. Let’s be real: in an open market an Austrian comes to Budapest and sees studios downtown for 90k euro, he will buy it. It is still ‘dirty’ cheap for a foreigner.
Budapest is still one of the most affordable capitals in EU. The problem here is the eternal thinking that the forint can stay strong and that prices can remain low. Wrong, it is the opposite: HUF keeps devaluation, nflation will always be higher in Hungary, market is open (thank God otherwise nobody would have money). In 10 years time prices will double.
It’s life.