Unbelievable: rent prices grew, newly-built apartment prices astonishingly high in Hungary!
In June, rent prices continued to increase in Hungary. The national average increase was 1.9%, while that rate was 1.6% in Budapest. If you want to buy a newly-built apartment in the capital, you must collect a lot of money since the average sqm price starts at EUR 3,800 in 2024.
Rent prices grew, Budapest is still the most expensive
Based on the joint rent price index compiled by the Hungarian Statistical Office (KSH) and ingatlan.com, the annual growth (compared with last June) was 10.3% on a national level. In Budapest, the increase was 9.9%. Compared to 2015, rental prices doubled in Hungary.
In Budapest, flats are typically for rent instead of houses, and 43% of the advertisers are private individuals. That rate is 42% in the Hungarian capital.
In Budapest, in H1 2024, the average rental price was HUF 250 thousand (EUR 636) per month. North Hungary, with counties like Borsod-Abaúj-Zemplén, Heves and Nógrád counties, is the cheapest concerning rental prices with only HUF 129 thousand per month, infostart.hu wrote.
Source: depositphotos.com
László Balogh, a senior expert of ingatlan.com, said that 85% of the flats and houses for rent are in Budapest and the county seats (Győr, Székesfehérvár, Debrecen, Szeged, etc.). In Budapest, the offer shrunk in the last few weeks, he added.
The sqm price for newly-built apartments is shockingly high
Based on OTP’s latest survey, in 2024 H1, the Budapest newly-built property market showed significant growth. The supply rose by 90% while traffic doubled. That is because of the increasing demand, the growing real wages, the lower inflation, and the relatively low property loan interests. The number of people aiming to invest in a newly built property also increased, liner.hu wrote.
The new flats sold reached 3,500 in Budapest by the end of June, a 2.5-fold rise compared to 2023 H2. Based on OTP Jelzálogbank data, the activity of the investors remains the highest in Budapest’s 13th district. More than 1,000 newly built apartments were put on sale in Angyalföld in the last six months.
Many people run into red lights because of the high rent and property prices in Budapest. Photo: facebook.com/karacsonygergely
Dávid Valkó, a senior analyst of OTP Jelzálogbank, said the average price per sqm in Budapest is HUF 1.52 million (EUR 3,869). But there are apartments where that price reaches HUF 4.5 million (EUR 11,454).
Read also:
- The price of an average panel apartment in Budapest is shockingly high – Read more HERE
- Average prices on Lake Balaton property market exceeded those in Budapest – Details in THIS article
Featured image: depositphotos.com
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2 Comments
The house market became very unhealthy for Hungarians. This could have been avoided, but Fidesz didn’t do anything, just the opposite.
This, more than anything, is the impediment to increasing Hungary’s birth rate and the willingness of Hungarians that have emigrated to return home. It will also serve to impede the appetite of foreign labour to work in Hungary, especially young and educated people who seek to rent a good home in a good location on their salary, something that is becoming unaffordable. Hungary appears to be driving into the same cul-de-sac my homeland the UK has done by engineering a property market that stunts growth prospects, damages living standards and encourages emigration. Considering all of these are already at a low level in Hungary, a dysfunctional property market that serves to push them even lower is something the country can ill afford, unfortunately, I see no appetite within Fidesz to change this state of affairs. Anyone in some way allied to the property market, either through their personal holdings, or because they are in some way affiliated with developers, construction companies or real estate agents will be making a fortune and have no personal incentive to change course. The artificial inflation of asset values serves to make the already rich even richer.