The European Parliament found a shocking property price rise in Hungary
The European Parliament shared shocking data about the rise in real estate prices in Hungary and the European Union. They found that the increase rate was brutally high in Hungary compared to the EU, where it averaged “only” 48%. The bad news is that experts believe the property price rise will continue this year in Hungary.
Property prices increased most in Hungary in the EU
According to the European Parliament, “in less than 10 years, between 2015 and 2023, house prices in the EU rose on average by 48%. The biggest increase is marked in Hungary, where prices rose 173%, and the lowest in Finland, with just 5%.” The European Parliament found that the highest year-on-year rise in Hungary was between 2021 and 2022. The increase rate was 46% then. Another almost 20% followed between 2022 and 2023, clearly showing the devastating effects of the skyrocketing inflation on Hungary’s economy and society. You may check out further data on the issue by clicking HERE.
“The main reasons contributing to the rise in prices are higher building costs and mortgage rates, a decrease in construction that limited supply and the rise in the purchase of properties as an investment to generate additional income”, they wrote.
Hungarians leave their parental home above 27
Another interesting fact they shared was the average age when people leave their parental home. The EU average age is 26.3, but that also varies significantly between EU countries, from 21.4 years in Finland to 31.8 years in Croatia. In Hungary, it is 27.1.
Foreigners buy property in Budapest and the Western counties
According to 24.hu, the number of foreign nationals buying Hungarian real estate is low. Based on the analysis of Otthon Centrum, the Chinese buy property only in Budapest’s downtown, while the Germans focus on Somogy County and the Western counties of Hungary.
Foreigners spend more money on property. The average property price they pay is HUF 51.1 million (EUR 123,000), while Hungarians spend HUF 2 million less. 92% of the foreigners buy property in Budapest and the Western counties of Hungary (Vas, Somogy, Győr-Moson-Sopron, Zala). The highest number of transactions concerning property took place in Budapest’s 8th district, where Americans, Western European and Ukrainian citizens were the most active.
According to experts, property prices will continue to rise in Hungary in 2025 due to several government measures aiming to pump more money into the sector. Here you may read more about them.
Read also:
- Good news: 2025 will be a better year in Hungary’s property market, says Duna House
- Budapest’s housing crisis in focus: What about the worsening situation in Debrecen?
Featured image: depositphotos.com
The acts of Heinous “protectionism” that has just been blatant in evidence even pre the out-break of the Covid Virus epidemic, that devastated Hungary, and “other” countrys, this Orban led Fidesz Government, its “propaganda” practices, through its ABILITY to control the MEDIA – to NEVER have the TRUE Facts – what was occurring inside the PROPERTY market in Hungary, continues to be Un-acceptable.
The FABRICATION of the Real Estate Property Market picture in Hungary, when as a Government, under Victor Orban, they have CHOOSEN to make a “public statement” has just been FILLED with un-truths and FALSENESS – of FABRICATION – in what they have decided to “spill out” into Hungary.
Go “back in time”, was it not 5 years plus DRIVEN to the then LEVEL – the rise in property prices by Foreign Investment – by the Chiness, the Vietnamise and Germans ?
Moving on post Covid, reports “spilled out” – by the Orban Government, time of there CHOOSING, that foreign investment, had “fallen off” in the Real Estate Property Market, but it was growing through HUNGARIAN buyers made possible by the policys introduced to assist HOME / property buyers by the Orban Government – especially 1st time Home buyers.
Interest Rates – still remain the highest of the member countrys of the European Union.
The Forint, continues to FALL against the Euro – through the CHAOS un-certainty of the Economic & Financial current and future of Hungary.
We have BUILT on and on, continue to do so, in housing – apartments, flats – that pre Covid – those of “knowledge” telling Orban – his Government, that SUPPLY was then, as it is NOW but WORSE, the supply of Housing / Apartments and “other” was un-balanced DANGEROUSLY against DEMAND.
This article, is it not saying, coming out of the European Parliament, that we have substantial evidence Victor Orban and your Fidesz Government, the “heinous” cover-up” of Truth & Facts – the “games” you have continue to practice – being Dis-Honest – the process of Falseness – in the FABRICATION, use of propaganda, through your control of the media in Hungary, with the PEOPLE of Hungary, in millions, the FACTUAL picture of the Real Estate Property Markets in Hungary ?
Do the maths.
History NEVER Lies.
Fundamentals of Economics and Financial calculations don’t CHANGE, that “beyond reasonable doubt” proves, that the Real Estate Property Markets in Hungary – are a GROWING “time bomb” waiting to Wreak – chaos and HAVOC, on Hungary.
The Economic fundamentals, to SUSTAIN the INFLATED and FALSE “extremities” of Property values in Hungary, under-pinned, by the DOMINATION of the Orban led Fidesz Government, with the gargantuan ” investment” – not just Fidesz Government officialdom, but of the Fidesz Membership, from its “inner sanctum” – the Oligarchy – right down and throughout its Membership.
FACTUAL matters – the FACTUAL big picture – telling the FACTUAL – TRUTH – to Hungarians by the Orban led Fidesz Government, just “dripping” it out in Propaganda as they see fit, through Orbans – Fidesz Government, there POWER & Control over the media in Hungary – that sooner than later, when the EXPLOSION eventuates, within the Real Estate Property Markets of Hungary, will be CARNAGE.
Does that mean that Germans and Dutch escaping their country cannot buy Hungarian real estate cheaply. Good. Time to keep Hungarian lands for Hungarians.
@mariavontheresa – hate to burst your bubble – EUR 123K is what a pensionado or the business folks I know from most northern European countries and Switzerland spend on a car. Every 3-4 years. If this money gets you a place to live without a mortgage – that is still a pretty easy decision, right? Also consider, when THEIR kids leave the house 5 years earlier than in Hungary, they can downsize and sell their EUR 1-1.5 MIO (EUROS) 2-3-4 bedroom houses in their home countries, buy something smaller, a place in Hungary and still have money to spare for a down payment to get their kids on the property ladder.
The bigger issue is getting people to leave their parental home and building a life, work, kids. Given it is Eurostat data – that is pretty robust. Meaning the Hungarian numbers are genuinely worrisome, I believe you will agree?