Huge change in apartment prices in Budapest!
There are new real estate trends in Budapest. For example, half as many people buy larger apartments than before. In addition, prices for apartments smaller than 45 square meters and larger than 135 square meters have already started to decrease. Have a look at the new apartment prices in Budapest!
László Balogh, the leading economic expert of ingatlan.com explained the new trends of the real estate market in Budapest to növekedés.hu.
Compared to 2015, an apartment in Budapest costs 2.5 times more
Compared to 2015, real estate prices increased by 2.5 times, said László Balogh, the leading economic expert of ingatlan.com. In Budapest, the entry price of apartments has risen from HUF 20 million (EUR 48,968) to HUF 30 million (EUR 73,452) in a few years. As for single-family houses, the entry category has risen from HUF 40-50 million (EUR 97,936-122,420) HUF 80 million (EUR 195,872) in the last 3-4 years. It is almost impossible to find a family house in acceptable condition and size for less than HUF 100 million (EUR 244,840).
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Half as many people buy larger apartments than before
The number of prospective property buyers has fallen dramatically. In September and October 2022, the prices of apartments between 0 and 45 square meters fell by 37 percent compared to the value of a year ago. Moreover, for properties between 45 and 90 square meters, the demand decreased by 39 percent. For apartments and houses with a floor area of between 90 and 135 square meters, the number of searching customers was 46 percent lower in September and October than a year earlier. For properties larger than 135 square meters, demand has fallen by almost 50 percent.
For what kind of apartment are buyers looking for?
Due to the high energy prices and the less favorable economic environment, the demand for properties with larger floor areas has fallen drastically. However, 55 percent of people were looking for properties between 45 and 90 square meters. The demand has obviously shifted towards smaller apartments. In 2019, only 23 percent bought a property with a floor area of 45 square meters. Now, this number has increased to 27 percent.
What to expect in Budapest?
In Budapest, the price index for larger houses is starting to change. According to László Balogh, in the medium category, a slowdown and stagnation is visible. There is uncertainty regarding the real estate market in Budapest. Buyers are trying to survive the current difficult period. If everything stays like this, there will be people who will sell their apartment and move to a smaller or more energy-efficient one, Balogh explained. These owners have to compromise. Due to fewer potential buyers, they have to sell their property for a cheaper price.
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Source: növekedés.hu
My daughter bought a condominium when she got sick of renting apartments or bed-sits in people’s homes. She paid a lot of it but 3 years later made a good profit, now owns a house which has its own rental unit in the basement of the house. This is great for people who do not want to live in high-rise apartments and cannot afford a condo or a house as yet. The house was very expensive, prices have risen, but as always with real estate, especially if well taken care of and kept clean, the value goes up with time. And meanwhile she herself has a nice place to live with a huge yard for herself, and a backyard for the renter.