Real estate in the CEE region: Central European capitals remain affordable, but how is Budapest performing?
According to a comparison of the home markets in capitals in neighbouring countries (Czechia, Poland, Romania, and Slovakia), Budapest’s real estate is among the region’s most affordable.
Average real estate price in Budapest
“In Budapest, the average real estate price per square metre of used condominium apartments already crossed the HUF one million psychological threshold in the second half of 2024, according to KSH data. Since then, the housing market in Budapest has seen a gradual price increase. According to Ingatlan.com’s housing price index, Budapest house prices rose 18 percent year-on-year in March. It may surprise many that despite the significant price increase, Budapest is relatively cheap compared to other regional capitals,” said László Balogh, chief economist at Ingatlan.com.
Central and Eastern European real estate prices per sqm
Home prices in Budapest stand at a little over HUF 1 million (EUR 2438)/square metre, well under prices in Prague, where homes cost the equivalent of HUF 2.2m (EUR 5364)/sqm, ingatlan.com said, citing data from local statistics offices and national banks. In Warsaw, home prices average HUF 1.5m (EUR 3657)/sqm, and close to HUF 1.4m (EUR 3413)/sqm in Bratislava. Bucharest is the cheapest capital for home prices: there, buyers pay HUF 850,000 (EUR 2072)/sqm.
How many years of work does it take to buy a property?
The data show that Hungarians earning the average wage must work 7.7 years to buy a 50-sqm flat in the capital. In Prague, locals must work 11.7 years to buy the same home. In Warsaw, the period is close to ten years, and in Bratislava, it is under nine. In Bucharest, locals have to work 6.5 years to save enough for a 50-sqm home.
Rental market: what percentage of the average salary do you have to pay?
The real estate portal has also compared rental prices in the regional capitals. It looked at how the average rent for an apartment of 50 square metres in different capitals compares to the average local net income. It was found that Budapest, Prague and Bucharest were essentially neck and neck. In the Czech capital, 44% of the average salary is enough for a month’s rent. In Budapest, the figure is 45%, and in Bucharest, it is 46%. More expensive is Warsaw, where 53% of the average salary goes to rent. The highest share of average net earnings is paid for rented accommodation in Bratislava. In the Slovak capital, 57% of the average net monthly wage is paid for a 50-sqm apartment.
The ingatlan.com expert says it is remarkable that in the rental markets of central European capitals, housing costs take up at least half of salaries. In addition to rent, which accounts for 45-57% of the average salary, tenants also have to pay overheads and common charges. “The fact that rents and housing costs take up a significant share of incomes in our region also contributes to the fact that the vast majority of people in Central European countries live in owner-occupied housing,” concluded Balogh.
Read here for more news about real estate in Hungary.
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