Property prices are skyrocketing at Lake Balaton

Nothing says summertime bliss like sitting on the veranda of your waterfront beach house at Lake Balaton and watching the sunset with friends and family. If buying property at the Hungarian sea this summer is among your short-term plans, we have bad news for you. Due to the adverse economic forecasts and the current geopolitical climate, the real estate prices at Lake Balaton and other popular holiday destinations are not going to drop any time soon, although the rapid surge may slow after a couple of months. Real estate prices are record-high even in the once-affordable towns, a bit further away from the lake. Read on to learn about the whopping square metre prices at Lake Balaton.

Dramatic changes in purchasing trends

Based on the information of Pénzcentrum, the domestic real estate market, including beach properties, witnessed increased activity in the first quarter of the year despite the ongoing war in neighboring Ukraine. Customers are usually more interested in eyeing up properties when the spring-like weather finally hits the country. However, the pandemics have brought significant changes to the housing market, thus causing a shift in customer behaviour.

According to market experts, people no longer look for a property only for the summer season but they also consider purchasing one as a second home. 

OTP Ingatlanpont (OTP Real Estate Centre) reported increased customer interest and transactions on the southern coast of Balaton while the region of Lake Velencei had moderate traffic in March. Nevertheless, prices continue to rise steadily. Lake Tisza did not witness a significant change in terms of purchasing trends. In 2021, the real estate market demonstrated a renewed strength all year round. Interestingly, customers were more inclined to purchase larger and more expensive properties during the spring and summer periods while cheaper and smaller properties were more in demand post-season. In comparison to last year’s figures, however, there is a 40-50% decrease in interest in the lakeside property market. It can be due to the general price surge that affects all markets as well as the rising loan interests.

Only the wealthy will remain at the lake? 

Pénzcentrum also quizzed the real estate experts about the annual forecast. Fortunately, they gave a reassuring answer: demand will never cease at Lake Balaton since it is the largest lake in Central Europe, a top holiday destination for many nations. One should not forget either, that the region around the Hungarian sea boosts the most developed infrastructure and a myriad of service providers, hence, it has a prominent position in the real estate market.

It goes without saying though, that the worsening economic situation will take a toll on the market. On the other hand, property owners who own houses at the top premium locations around the lake have no reason to be concerned.

Tamás Katona, a consultant at OTP Ingatlanpont, highlighted that further price increases can be well expected since newly built house prices and constructions costs rise as well. Consequently, purchasing traffic is forecasted to slow down this year. Another expert added that demand is still the highest in two regions in the country: Budapest and Balaton. Interestingly, a premium Balaton property can occasionally cost even more.

How does the war affect the market?

The negative effect of the Russian-Ukraine war can be already felt in many sectors of the economy, and naturally, the summer housing market will not be spared either. Taking into consideration that the loan interest rates have been sharply increased as part of the central bank’s attempt to keep inflation at bay, we can expect a serious disruption in the marketplace. On the other hand,

it is too early to predict further events as the market always shows increased activity at the beginning of the year besides the summer period has not yet kicked in.

What is already seen though is that there is more interest among customers who have the purchasing power to pay for the property without taking out a loan while those who are in need of capital are more varied about making decisions. Due to the approaching global crisis, a drop in summer house sales can be well expected as these purchases are considered luxury needs in times of economic uncertainty. 

Read also: Can it go even further? Hungarian rental market to experience price explosion!

The most expensive places around Lake Balaton

There is no doubt that no other part of the country, except the capital, beats the property prices of the Balaton region. In fact, some waterfront luxury villas can cost even more than upscale premium real estate in Budapest. The most expensive properties are found in the Balatonfüred-Csopak-Tihany triangle which hopefully remains unchanged in 2022. Among the lakeside towns and villages, Tihany, Balatonfüred, Siófok, Szántód and Csopak are the most pricey according to the data from OTP Ingatlanpont. Here, the average cost per square metre is somewhere between HUF 640,000-850,00 (EUR 1694-2249). Moreover, in some settlements near the lake the square metre price reaches HUF 1,000,000 (EUR 2646).

In Tihany, the average square metre price is HUF 1,800,000 (EUR 4763), but in Balatonföldvár the cost is also nearly HUF 1,400,000 (EUR 3708). Zamárdi, Alsóörs, Balatonakarattya and Balatonfüred are not far behind either with HUF 1,000,000 (EUR 2646) for a square metre on average. 

In this period, you can find properties in Gárdony and Velence for HUF 700,000 (EUR 1852) and 800,000 (EUR 2117) per square meter on average. On the other hand, if you look for properties around Lake Tisza, you can find good deals for HUF 360,000 (EUR 953) per square metre in Tiszafüred and for HUF 200,000 (EUR 529) in Sarud and Tiszaderzs.

What about the agglomeration of Lake Balaton?

Pénzcentum also asked the market experts regarding the settlements that lie a bit further away from the lake. Tamás Katona informed the news outlet that as the lakeside property prices increase there is a direct connection to the expansion of other desired locations. Buyers start considering towns and villages that are 10-15 km away from the lake, for example, Lepsény.

OTP Ingatlanpont listed the cheapest places based on average price per square metre: 

• Kővágóörs
• Felsőpáhok,
• Balatonszabadi,
• Balatonfőkajár
• Kőröshegy

According to the information of OC, demand has grown in Balaton Felvidék (Balaton Uplands).

In the smaller, traditional villages such as Cserszegtomaj, Nemesvita, Dörgicse buyers can find properties for half price compared to the popular Siófok and Füred towns. 

However, as these places are getting more attention the prices have also upped in this area. It is hard to find a decent property under HUF 30,000,000 (EUR 79,364). The average cost per square meter in these villages is between HUF 270,000 (EUR 714) and HUF 300,000 (EUR 794). Balatonmagyaród, Balatonújlak and Balatonendréd are good examples of this trend where average prices per square metre are HUF 225,000 (EUR 595), HUF 234,000 (EUR 694) and HUF 399,000 (EUR 1056) respectively.

Lake Tisza and Velence are no longer budget-friendly options

In the past years, Lake Tisza used to be considered the secret budget-friendly option in the holiday housing market. However, the region has gone through significant developments such as the construction of a bicycle road and a railway line. These projects have naturally upped the prices so now the average cost per square metre is Abádszalók és Tiszafüred has doubled, reaching the prices of Balatonfelvidék (Balaton Uplands) HUF 200,000-250,000 (EUR 529-661). The region of Lake Tisza suddenly became a hit among property buyers. The price increase is significant. 

• 27% increase in Abádszalók – average cost per square metre HUF 231,000 (EUR 611)
• 37-39% increase in Kisköre and Poroszló- average cost per square metre HUF 208,000 – 256,000 (EUR 550-677)
• 70% increase in Tiszafüred – average cost per square metre HUF 360,000 (EUR 952)

Lake Velence is enjoying great popularity as more and more people consider buying properties in this area. An increasing number of Budapest residents have changed their base recently and moved to Lake Velence as it is relatively close to the capital, just an hour’s drive. The lake is in close proximity to Székesfehérvár, another prominent Hungarian city. As a result, prices have been skyrocketing at Lake Velence as well. In the case of a second-hand house, the average price per square metre is HUF 600,000 (EUR 1587), while you can purchase newly-built properties for HUF 800-900 (EUR 2116-2381). Property prices have doubled, with the average price per square metre being HUF 788,000 (EUR 2984), in the Velence region in the past five years which means that buyers no longer cut costs if they leave the capital and move down to the lake.

Read also: Hungary has seen the biggest increase in real estate prices in the EU

Source: penzcentrum.hu