New apartment prices in Budapest see highest increase among European capitals in 2023
Deloitte conducted a survey covering 24 European countries and 59 cities. According to the report, Budapest experienced the most significant rise in new apartment prices among EU capitals last year, with an increase of 11.2% in Hungarian forints.
Budapest sees highest rise in new apartment prices
According to the report of Telex, Warsaw (9.7%) and Oslo (7.2%) followed behind. No other European capitals saw price increases above 5% in the past year.
When considering prices in euros, Budapest also saw the highest rise.
However, Budapest remains relatively affordable compared to the region, with an average price of EUR 3,260 per square meter. New apartments are more expensive in Prague (EUR 5,153) and Bratislava (EUR 3,884), while Warsaw has lower prices (EUR 3,022).
Paris remains the most expensive capital, with an average price of EUR 14,900 per square meter for new apartments, followed by Munich at EUR 10,900. Copenhagen saw the largest drop in new apartment prices in 2023, down by 7.4%.
The survey also examined London, where central city prices fell by 12.5%. When looking at countries rather than cities, Italy experienced the greatest decrease in new apartment prices. Austria is the most expensive country, with an average price of EUR 4,920 per square meter, followed by Germany (EUR 4,700), France (EUR 4,538), and the Netherlands (EUR 4,266).
In recent years, the gap between Central and Eastern European and Western European apartment prices has narrowed. In 2023, the price of new apartments in Italy fell below the average level of the four Visegrád countries (Czech Republic, Hungary, Poland, and Slovakia). Additionally, used apartments in Italy are now cheaper than in the Czech Republic, Slovakia, and Poland. Hungary was among the lowest in terms of new apartment construction per capita in the 24 countries surveyed in both 2022 and 2023.
Rental prices in Europe
Deloitte’s Property Index also analysed rental prices: Budapest has the 18th lowest rental cost among 59 European cities, with an average of EUR 11.3 per square meter, similar to Linz, Graz, and Athens. However, it’s worth noting that The Economist reported in February that
renting an apartment in Budapest is the most expensive relative to wages.
The survey also looked at how many years of average gross salary are needed to buy a typical 70-square-meter new apartment. In Hungary, this amount is 10.2 years in 2023, compared to 13.3 years in the Czech Republic. In Poland, the Netherlands, the UK, and Slovenia, it ranges from 6 to 8 years. In Romania and Italy, it’s 5 to 6 years, while in Denmark and Norway, it’s 4.7 and 4.8 years, respectively.
In 2023, mortgage interest rates varied significantly across Europe. Poland had the highest rates at 8.1%, followed by Romania at 7.7% and Hungary at 7.4%. However, Hungary also offered more favourable subsidised loan options, though these often do not reach those who need them the most. The lowest interest rates were found in Belgium (3.33%), Croatia (3.26%), and Spain (3.45%).
Read also:
- High-end parking craze in Budapest: Buyers shell out millions for premium garages
- Surge in rental market prices amid growing demand in Hungary
Featured image: depositphotos.com
Is anyone else noticing an increasing trend of expats drifting away (either moving home or to third countries) citing the high cost of living, mainly driven by the cost of housing (often partnered with low local incomes)?
Londonsteve – Hungary, just by being a Member of the European Union, rated 26th of the 27 country’s that are the European Union, there CHAOS of there Economy, the Debt of the Orban – Fidesz Government, to the European Union and China and no doubt China – equal to if not the lowest of basic wage, of the European Unuin member country’s, and a currency that is under humongous DURESS, accompanied with, interest rates, the highest of the European Union.
Hungary – under a Prime Minister Victor Mihaly. Orban – his Distillation of Democracy, the transfer, shifting to partnerships and relationships with Communist – Russia & China, there is NO light at the end of the tunnel for Hungary.
Sustainability, Growth – as we know GROWTH is created by Governments that factually have money to INVEST which in the case of the Orban – Fidesz Government of Hungary – they HAVE nothing in the “kitty” to INVEST – bought to this position, through there APPALLING failings of understanding PRIORITIZATION, just the basic NEED’s of every day life of Hungarians.
Sustainability – no foundations are LEFT in the “Core” of the Hungarian Economic & Financial balance sheet – to SUSTAIN find a place – establish a place of Stabilization in the Hungary Economic & Financial picture.
This platform, used by me on numerous occasions over the past 3 years, my position remains, that through an over-supply of property’s against a diminishing buyer number, the “disappearance of Foreign Investors – from the West & the East – then CHAOS of the Hungarian Economic & Financial picture, the growing Political In-stability of Hungary, from it’s “supposed” Democratic functionality, to moving it-self to Russia & China – as PARTNERS being trading, financial and “other” – the FACTUAL picture of the Real Estate / Property Market grows in being a CARNAGE.
They BUILD on, renovate on, build on new Hotels – FOOLISHLY – Wrongfully that is “deepening the nail” – in there Coffin, that will end in a CATASTROPHE.
Who from in Hungary will Buy ?
Who from outside Hungary will buy – Invest into property ?
Who will come to “Sleep” the night in the growing EXCESSIVE numbers of Hotels ?
Who will or want to visit a country that grows in being KNOWN as a Political MESS and an Economic & Financial – SHAMBLES ?
Hungary – future in the European Union remembering through Non-Compliance and as I write NOT yet SIGNED to in the FUTURE to COMPLY to the Laws of European Union Membership, that see’s Hungary – rightfully not RECEIVING funding from the European Union.
N.A.T.O. – the adapted position taken of the Orban – Fidesz Government that being OBJECTORS.
Schengen – with 29 country’s, the Orban – Fidesz Government play – OBJECTORS.
There HAS been an AWAKENING to Hungry, what Orban and his Fidesz Government have DELIVERED to the country Hungary, that INVESTMENT, especially from the WEST – that Hungary takes a growing position of being High, high RISK.
Hungary – a decreasing Population.
Hungary – an “Ageing” Population.
Hungary – over the course of the last 15 years the time in Government of Prime Minister – Victor Mihaly. Orban and his Fidesz Government, that deaths yearly of Hungarians sizable outnumber “little one’s” being born.
Hungary – is NOT a low TAX country – for individuals/citizens and Business / Corporations – operators.
Comparisons to TAXES, there scales, of the “other” 26 membership countries of the European Union will CONFIRM this FACT.
The Orban – Fidesz Government – “Double Dip” in there taxable scales on individual taxes and business/corporations that is DRIVEN by Hungary – factually having practicing the HIGHEST Vat application of 27%.- of the 26 European Union country’s.
Sanctioning of Hungary by the United States of America fact known, of the DISTANCING of friendships of the USA and Hungry, through the leadership of Victor Mihaly. Orban – have COMMENCED and will INCREASE, at every GIVEN chance.
WHO are LEFT – what country’s are left with being FRIENDS of Hungary, that have NOT been forced into a position to ABANDON Hungary ?
Answer : Russia and China.
What is PRESENTLY the GLOOMED picture of Hungary as a country, under a Prime Minister – Victor Mihaly, Orban and his Fidesz Government, that are all Judas – TRAITORS to Democracy, and it WILL WORSEN.
“I think the greatest of human virtues is Loyalty.
Loyalty embraces all the best of human character : courage, faith, love and Charity.”
Quote of “Tin Legs” a Hero of mine – Sir. Douglas Bader.