Over the past decade, property prices in Hungary have experienced an immense increase.
The general costs of living increasing little by little as the years go by is a natural phenomenon that happens in every country. However, on some occasions, some of these prices can even show a 100% increase over the course of just ten years. That is what happened in Hungary.
When Hungary joined the European Union in 2004, it was evident that prices would follow and someday reach an EU level. When it comes to buffet prices at Lake Balaton, they certainly managed to catch up with this level as they are close to exceeding the prices administered at the Adriatic Sea. Meanwhile, Central Europe’s biggest lake lags a little behind the sea when choosing a holiday location.
Not long ago, Daily News Hungary reported on the skyrocketing prices in the country. And just recently, Eurostat has published the newest numbers on rents and house prices in the European Union. Although Hungary does not lead the list, the country does occupy a front position.
Looking at the past ten years, the Hungarian property market experienced an immense increase.
Between 2010 and the first quarter of 2021, the prices of houses for which they were sold have doubled
(reaching almost a 100% growth). Considering the whole of the European Union, this number is quite an impressive one, despite not occupying the first position. Nevertheless, only two countries, Estonia (126,8%) and Luxembourg (108,2%) produced an even higher growth, strictly considering house prices. It was not the case half a year ago, though, when Hungary was sitting in the second position. Thanks to a period of stagnation in the country and a significant jump in Luxembourg, the order was rearranged.
When it comes to renting prices, despite being somewhat less outstanding, they still produced an increase of close to 43%. In practice, this means that
an apartment offered for rent for the price of HUF 120.000 (EUR 343) today would only have cost around HUF 84.000 (EUR 240).
Although this number was not enough for the third position, it still positions Hungary quite ahead.
When looking at both the house and rent prices, up until the second quarter of 2011, they followed a very similar path in all EU member states. Since the middle of 2011, house prices show a certain fluctuation until the middle of 2015, when they started to increase at a relatively rapid pace. Ever since then, the speed of their increase is faster than that of house prices. When renting an apartment, prices showed a steady and continuous growth since 2010.
It is not so surprising then that based on data of Eurostat from the first quarter of 2021, portfolio.hu writes that prices in both cases show a continuing increase, compared to the last quarter of last year. 0,4% in the case of a house or apartment for rent and 2,2% when it comes to a property for sale.
Looking at the big picture and the last decade, it means that
in the European Union, rents have increased by 15,3%, while property prices by 30,9%.
While this increase happened in 23 member states, four of them were able to do the opposite. Greece and Cyprus administered a decrease in both categories, whilst Spain (-4,8%) and Italy (-14,4%) made new house owners happy by decreasing their house prices.