Hungary’s real estate price rise is in the EU’s top 2, housing market fundamentally changing
Based on the latest data of the Eurostat, Hungary’s real estate price increase was the second biggest in the European Union between 2010 and 2022. Meanwhile, the rental price increase in Hungary is in the top 4 of the EU.
According to hvg.hu, the average growth of real estate prices in Hungary was 7.4 percent in Q3 of 2022 compared to 2021 Q3. Meanwhile, rental prices went up by 2.1 percent.
Between 2010 and 2022, the average real estate price increase in the European Union was 49 percent, while rental prices rose by 18 percent. Meanwhile, Hungarian real estate prices stood 174 percent higher last December than in 2010. The top increase was in Estonia, based on the Eurostat.
Meanwhile, renting an apartment got 60 percent more expensive in the last 12 years. That is the fourth biggest price rise in the EU after Estonia, Lithuania and Ireland.
According to RTL Klub, the Hungarian real estate market fundamentally changed in the last few years. Interest rates and energy prices have soared, and people think their future is much more uncertain than before. Therefore, demand has fallen significantly, which considerably affected the prices. However, the number of apartments to rent increased. Currently, the number of flats for sale and rent is identical in Hungary, which is unique.
László Balogh, an expert on ingatlan.com, told RTL Klub that the real estate market faced challenges on which Hungary had no influence. For example, the ongoing political-military conflicts or the energy crisis. As a result, more people would sell their homes cheaper. He believes that this trend would remain with us in the coming months.
Prices have stagnated since September, except for some popular locations and apartment types. Therefore, investors are in a good position now. Furthermore, the majority of people prefer to rent a flat instead of buying one. That is why there are as many flats for rent as for sale.
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Source: hvg.hu, RTL Klub