real estate

Shocking price gap between most and least expensive streets in Hungary

Recent data has revealed a significant price gap in the square-metre prices of houses in Hungary. Ingatlan.com compiled a ranking based on statistics from the Hungarian Central Statistical Office and sales from the previous year. Here are the most and least expensive areas in Budapest and Hungary.

Last year’s ranking in Budapest

24.hu reported that residential properties were selling for an average of nearly HUF 2.5 million (EUR 6,525) per square metre in the most expensive street. It comes as no surprise that this street, Költő Street, was located in the capital. The first and second runners-up were also located in Budapest, Vécsey Street (District V.) and Orom Street (District I.). There, the price per square metre was HUF 2.3 million (EUR 6,000) and HUF 2.2 million (EUR 5,740), respectively. On the opposite end of the spectrum was the infamous Hős Street (District VIII.), the cheapest in the capital last year, with HUF 223,000 (EUR 580) per square metre. Rákóczi Road (District XVI.) secured second place with HUF 298,000 (EUR 778), and Gitár Street came in third with HUF 313,000 (EUR 817).

Last year’s ranking in the countryside

In addition to Budapest, settlements along the shores of Lake Balaton exhibited a shockingly expensive real estate market. Settlements near Lake Balaton were the only ones outside Budapest to feature in the list of the top 10 most expensive streets in Hungary. In 2022, the most expensive street was situated in Balatonfüred. The average square metre price in Honvéd Street was HUF 2.34 million (EUR 6,110). The other two streets in the top three were located in Siófok, with the average price in Deák Ferenc Promenade at HUF 1.73 million (EUR 4,520) and in Vitorlás Street at HUF 1.62 million (EUR 4,230). The least expensive houses outside Budapest were found in Mezőhegyes, with an average price per square metre as low as HUF 21,000 (EUR 55).

This year’s rankings

As anticipated, the most expensive area in 2023 remains in Budapest. Széchenyi Quay (District V.) takes the first place on the list with a price per square metre of almost HUF 3.5 million (EUR 9,135). Second place goes to Szántód’s villa row, where the average price was HUF 3.2 million (EUR 8,350). The second runner-up this year is Sirály Street in Balatonfűzfő, with an average price per square metre of HUF 3.1 million (EUR 8,090). Much like last year, the most expensive streets are either in Budapest or near Lake Balaton. The least expensive street this year is Táncsics Mihály Street in Nágocs (Somogy County), where residential properties are surprisingly being offered for just HUF 5,000 (EUR 13) per square metre. In conclusion, the most expensive houses cost 700 times more than the least expensive ones. However, as reported HERE, a brutal price fall is expected in the Hungarian property market. Additionally, an unexpected turn in Hungary’s rental price market is also happening.

How do Budapest rental prices fare compared to other European cities’?

budapest real estate

Statista has released a new report based on HousingAnywhere’s rental price data. This new report reveals that the average rent price has surged by 43% since last year. More importantly, it reports that the average Budapest rental price is 1,100 EUR, roughly 430,000 HUF. We researched the most recent data to verify its accuracy and compared rental prices to those of other European cities.

As Telex report, according to the latest KSH reports from July, the average rent price in Budapest and Hungary overall has risen by 1.9% compared to June. It has increased by 14% in Budapest and 13% in Hungary overall since July 2022. The average rent is HUF 230,000 (EUR 591.84), with the II. and V. districts having the highest prices at HUF 350,000 (EUR 900.62) and the XXIII. district the lowest at HUF 150,000 (EUR 385.98).

This data suggests that Statista‘s report, which has gained popularity on social media with over 7,000 likes by 6 October 2023, is somewhat misleading because HousingAnywhere‘s data pool only includes about 125 rental properties in Budapest, targeting mobile, upper-class consumers aged 18-35, including some digital nomads who do not rely on Hungarian wages and are typically paid in euros.

Read more: Brutal price fall expected on Hungarian property market in next 2-3 years

According to Statista’s most recent 2022 Q3 report on European rental prices, Budapest is becoming more comparable to other European cities. The average rent in Turin is EUR 970, slightly higher than the average rent in Budapest’s most expensive districts, but almost 50% higher than the city’s overall average rent and nearly three times as high as the average rent in the cheapest district.

Although Turin has a per-capita GDP of only EUR 33,000, which is just 10% higher than Budapest’s, it commands significantly higher rent prices. Other European cities like Brussels and Berlin have much higher rent rates, averaging 1,100 and 1,695 euros, respectively, while even Ljubljana boasts a higher average rent of 700 EUR. Conversely, Warsaw has an average monthly rent of EUR 610, which is approximately EUR 50 lower than the price of a one-bedroom apartment in Budapest, Eurostat reveals.

These statistics alone do not paint the whole picture. As we mentioned earlier, the average rent price has risen by 14% in Budapest since last year. However, according to KHS’s report, the average net salary has only crept up to HUF 377,600 (EUR 971.64), a 17.9% increase. Real salary prices have actually dropped by 3% due to a 21.5% increase in average consumer prices. This has made it more challenging for people living on average Hungarian wages to afford rent in Budapest. In contrast, it has not significantly affected digital nomads, as most of them receive their salaries in euros.

Read more: No end in sight: horror of the Hungarian rental market continues

Author: Máté Kollár

Brutal price fall expected on Hungarian property market in next 2-3 years

real estate property in budapest rental market home prices

Second-hand flats and houses may lose HUF millions (EUR thousands) of their value in the next 2-3 years. Will Hungary become a new Mecca for property investors again?

The last couple of years saw a brutal hike concerning real estate prices in Hungary. Currently, a couple with an average net income has no chance to buy a flat even in the long run because they cannot save that much money and interest rates are very high due to the high base interest rate introduced by the Hungarian National Bank in 2022 to protect the forint’s value.

According to Blikk, a Hungarian tabloid, in the next 2-3 years, even a 10-15% price decrease is possible on Hungary’s second-hand property market. Based on the latest data of the Hungarian Central Statistical Office (KSH), the price of second-hand flats decreased by 3% compared to H1 2023. László Balogh, a leading expert, said that property worth HUF 70 million lost HUF 1 million of its price in just months. He added that on an annual level, there is a stagnation in the market. Provided the trend continues, property prices could settle at a lower price level.

Read also:

Without government help, property prices will shrink in Hungary

He did not exclude a 10-15% price decrease in a 2-3 year long term. He said that trend could be baulked by a new, state-supported, preferential housing loan. For example, the CSOK+ scheme kicking off in 2024 may shake the market up. And with a rising demand, prices may continue to increase again.

In small settlements, we have to pay less for big family houses than last year. In Győr, Kecskemét, Debrecen and other municipalities, prices remain stagnant for now. In Budapest, the average sqm price is almost HUF 1 million. Based on the Duna House’s leading analyst and expert, more and more buyers can bargain with the owners because of the decreasing demand.

Károly Benedikt said bargains span from minus 4-6% to 8-10% in some cases, which is favourable for the buyers.

Unexpected turn on Hungary’s rental price market

Budapest real estate

Based on the latest data, rental prices started falling in Hungary but not in Budapest. Yet.

Rental market changes in Hungary

According to index.hu, Otthon Centrum’s latest data shows that rental prices started to fall in the Hungarian municipalities. In Budapest, the pace of price increases slowed down.

In the last three months, the average rental price of brick apartments in Budapest reached HUF 242 thousand (EUR 634.5). That is only 3% higher than in H1 in 2023. Meanwhile, in the cities above 100,000 inhabitants, the average rental price is HUF 168 thousand (EUR 434), which is 1.7% lower than in H1 2023.

Based on the data of Otthon Centrum, Budapest’s downtown is the most expensive. The average rental price reached HUF 359 thousand (EUR 926) there, which is unaffordable for most Hungarians. Meanwhile, in the outer districts, the average rental price is HUF 177 thousand (EUR 456), which is more than half of the Hungarian average net income per person.

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Demand for small flats strong

In the country, Székesfehérvár, Győr and Pécs are the most expensive, HUF 180 thousand (EUR 458). Szeged, Miskolc and Debrecen are cheaper (HUF 150 thousand, EUR 387). The category of blocks of flats is the cheapest everywhere. You may rent out such a flat in Buda for less than HUF 200,000 (EUR 516).

Demand is the strongest for small, one-room flats. Therefore, the price rise is the most significant in that category. Therefore, Otthon Centrum recommends two-room flats because prices did not go up compared to H1 2023, and there is no significant difference in the nominal prices compared to one-room apartments.

Magyar Nemzet, a government-close daily, believes that the Hungarian property market would start to flourish again only if real wages grew. Pénzcentrum wrote that one sqm of second-hand flats in Budapest decreased from HUF 954 thousand in July (EUR 2,461) to HUF 953 thousand (EUR 2458).

Biggest fall in real estate prices since 2009 in Hungary

Budapest real estate housing crisis in Budapest's real estate market

The decline in real estate prices has accelerated in Hungary, according to the latest data from the Hungarian Central Statistical Office (KSH) for the second quarter of 2023. On a Q-on-Q basis, prices fell by almost 3% in the worst period of the coronavirus epidemic and at the end of 2009. This percentage is similar to the second quarter of this year, according to a recent analysis by ingatlan.com.

Fall in real estate prices

24.hu writes that in the second quarter of this year, the price of second-hand residential property fell by 2.9% compared to the previous quarter, according to KSH data. A similar decline was recorded in the last quarter of 2009. Even during the months of the pandemic lockdowns, the quarterly price decline was only 2.8%. László Balogh, Chief Business Expert at ingatlan.com, says:

The latest data confirm the trend that was already apparent from the evolution of supply market prices. The fall in prices is mainly due to a fall in demand caused by high interest rates, which can no longer be ignored by home sellers. Owners interested in selling are now having to reduce the price of their properties, which could be good news for buyers.

End of a rising tendency?

Forbes also notes that when considering the huge gap with inflation, it is also worth noting that house prices have risen at a remarkable rate since 2015. Compared to the second quarter of 2015, the price index has risen more than two and a half times, 262%, by the second quarter of 2023. The nominal increase for new homes is 306% and for second-hand homes 256% over eight years, as experts at Ingatlannet.hu point out.

A downward spiral in construction

The number of homes to be built on the basis of building permits and simple notifications issued in August was 1,380. It is 36% less than the number of housing planned in August 2022. In addition, 18% less than in August 2021 according to the freshest statistics of KSH. Even in August 2020, the year of the pandemic, the number of planned housing was still higher, with 1,411 units. In the first eight months of this year, the number of scheduled construction starts was 13,491, almost 42% lower than in the same period of 2022. The number of scheduled home constructions was 5,612, down 44% from last year.

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Government decision turns Hungarian property sector upside down

Budapest real estate

Thousands of Hungarian families may sell their small flats and houses in the next few months and buy new, larger ones. That is because the government is to abolish the CSOK family property allocation scheme in the big cities and Budapest in 2024.

According to Pénzcentrum, the purchases will bring a new boom to the shrinking Hungarian property market. Based on the latest analysis of ingatlan.com, families having three or more children will probably sell their properties to buy a larger one before the government’s family real estate buying support scheme expires.

Mostly families with 35-45-year-old parents will sell their small properties by the end of this year to buy a new one. Based on data, 120,000 households are raising at least three children. By the end of 2022, 80,000 of them utilised the CSOK support.

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Price of an additional room varies significantly

László Balogh, the leading economic analyst of ingatlan.com, measures that around 5-6,000 Hungarian families may move to a new flat after selling the old one in the last few months of the year. That may bring a boom to some real estate market segments.

But how much does an extra room of 12 sqm cost now in Hungary? Based on the average sqm price, it costs HUF 11.4 million (EUR 31,000). The most expensive districts are the 1st, 2nd, 5th and 12th, where a sqm may cost HUF 14.5-18 million (EUR 37,000-46,000). Meanwhile, in Csepel (21st district), that is only HUF 8-8.4 million (EUR 21,000-22,000). That is the price for which you can buy a larger flat in Győr, Debrecen and Veszprém. Szeged, Pécs, Kecskemét and Székesfehérvár are cheaper with HUF 7-800,000. An additional room is the cheapest in Miskolc, Békéscsaba and Salgótarján.

Based on the analysts of money.hu, despite the high base interest rate, there are loans for an interest rate of around 7% on the market. Thus, the bargain may be worthy for most families.

Looking for a property near Lake Balaton? You’ll have to dig deep into your pockets!

Lake Balaton Panorama

If you want to buy a house at Lake Balaton in Somogy County, you can choose from the most expensive properties in the country.

Buying property in Lake Balaton

Property prices along the shores of Lake Balaton have risen dramatically in recent years. Thus, the price per square metre of buildings around the Hungarian sea is even higher than the prices in Budapest, 24.hu writes.

Of course, the closer the property is to the water, the more it costs. “If you go back in time 10-15 years, you could practically buy a luxury property for HUF 100 million (EUR 256 thousand). Nowadays, that kind of money might not be enough for a waterfront apartment. Sometimes you may have to pay HUF 200-300-400 million (EUR 513 thousand- 1 million) for a house,” said László Balogh, chief economist at ingatlan.com.

Expensive, but are prices going down?

According to data from the real estate agent, the price of property at Lake Balaton has been steadily falling over the past year. For example, in Siófok, the capital of Lake Balaton, the price of a square metre used to be HUF 1,150,000 (EUR 2949), but now it has fallen back to HUF 1,050,000 (EUR 2693). Even though prices have been going down, Siófok is still much more expensive than Budapest, where prices per square metre are around 940-950 thousand (EUR 2411).

If you want to buy a house at Lake Balaton but want to save money, you should look around the western part of the lake. Here, you can buy a building for up to 30 percent less, sonline.hu writes.

In fact, if you want even cheaper property, you should buy a house in southern Somogy. Here, buildings are offered for sale for an average of HUF 300 thousand (EUR 769.4) per square metre, or even less in many cases.

Hungarian real estate market prognosis: brutal price falls and partial collapse

Foreign-buyers-reappear-in-the-Hungarian-real-estate-market Hungarian real estate market

The Hungarian real estate market is currently experiencing the “years of waiting”. At the moment, the market is mostly waiting, vegetating, surviving. Obviously, this is like a death sentence for the property market participants; however, there is still hope that the market will experience soaring like that of the past 6-7 years.

Since the Covid pandemic in 2020, it has been a constant struggle, uncertainty, reorganisation and challenge for every segment of the domestic real estate market, Portfolio writes. The housing market crashed, then boomed and now it has crashed again.

Declining number of transactions in the real estate market

The property market is currently living the “years of waiting”. The incoming data keeps suggesting difficulties the market is experiencing. The basic functioning of the market is derived from the continuous and stable operation of the business. Transactions are what enable this operation. Unfortunately, that is what is in short supply at the moment.

Although the market is not even close to what it was experiencing during the 2008 financial crisis, the soaring of the past 6-7 years and the business models built on them have started to crack here and there. These are years of wait-and-see caution, which is the silent killer for market participants, Portfolio writes.

People prefer cheaper, less energy-efficient properties, contrary to expectations

Otthon Centrum has carried out an analysis of the energy efficiency of real estate. It shows that energy efficiency increases the price of the property. This is one of the reasons why the forecasts for an increase in demand for energy-efficient buildings have not materialised. The majority of Hungarians are buying cheaper, less efficient properties.

As the effects of climate change become more and more tangible, environmental awareness is gaining more and more attention in all walks of life. In Hungary, energy performance certificates have been mandatory since 2012 for the construction of new buildings, for the sale of existing buildings and for the rental of property, Index notes.

Based on the data for the first half of the year, it appears that expectations of a shift towards more efficient properties have not materialised, with cheaper but less efficient properties selling this year.

Read also:

Danube region flooded with Germans and Dutch, factories brimming with Filipinos

Property prices are skyrocketing at lake Balaton 2

One in twenty buyers in the Hungarian property market is foreign, with the Transdanubian and Lake Balaton regions being particularly popular. At the same time, the Hungarian labour market is also flooded with migrant workers, especially from the Philippines.

Foreign buyers in the Hungarian property market

Roughly one in twenty buyers on the Hungarian property market are foreigners, accounting for 4-5% of the 5-6 thousand properties purchased each year. László Balogh, chief economist at ingatlan.com, said these are not just investments, many live here or spend most of the year in Hungary.

People from different countries come to our country with different preferences 24.hu writes. Chinese, Vietnamese, Israeli and Russian buyers are concentrated in the capital, Budapest.

While Germans (30% of foreign buyers), Dutch, Swiss, Austrian and Belgian buyers prefer to look for property in the countryside. The most popular areas are in the Transdanubian and Lake Balaton regions. They mostly come not to work or study but to settle down. Many of them are retired people who receive their pensions from their home country, which allows them to live their best lives in Hungary.

Foreign workers in Hungary

At the same time, the number of foreign workers in Hungary is rising. Due to labour shortages, more and more guest workers are arriving, with the number currently reaching over 100,000.

So far, workers have mostly come from neighbouring countries, but this trend is changing and in the near future workers will come from further afield, typically from third countries.

As far as the length of stay is concerned, according to the legislation, the residence permit of a guest worker entitles the individual to stay in Hungary for a fixed period of up to two years, which may be extended for a maximum of one year, for the sole purpose of employment.

Experience so far shows that migrant workers move on after two years. The problem is that there is currently a serious labour shortage in Hungary, with 78,000 people missing from the labour market.

Contrary to popular belief, employing guest workers is not cheap, as they have to pay a great deal of additional expenses, making it on average 30% more costly to employ a third-country national than a local worker.

According to vg.hu, foreign workers are most likely to find jobs in logistics and agriculture in Hungary. The proportion of Filipinos is extremely high, with 80% of the population working abroad.

Budapest rental prices rose drastically in just one year

Hungarian housing market - real estate

An international survey found that the rental price of a one-bedroom flat in Budapest almost reaches the price of their counterparts in Brussels or Vienna. Though that research might be misleading because of the small element number, real estate experts highlighted that despite the economic crisis hitting Hungary, rental prices rose significantly.

According to index.hu, László Balogh, the economic analyst of ingatlan.com, the most popular Hungarian real estate search website, the price growth is around 10% concerning Budapest flats with one or two bedrooms. That is because the record-high Hungarian inflation made it impossible for most people to buy property. As a result, many of them remained in their rent, which continued to boost rental prices.

Last September, the median rental price of a Budapest flat with two bedrooms was below HUF 200,000 (EUR 510). This year, the average sum grew to HUF 220,000 (EUR 521). That means 1/3rd of a household’s income calculating with two employees getting an average salary. Concerning one-bedroom flats, the median rental price grew from HUF 150,000 to HUF 167,000 (EUR 435). Concerning utilities, that sum is half the income of an average employee working in the Hungarian capital. Meanwhile, real wages have been decreasing for the tenth month in Hungary.

Read also:

  • Castle for sale on riverbank in Hungary – now at a discount, check out the photos, and videos in THIS article
  • Buying property: Romanians beat Hungarians – HERE is why

Budapest rental prices as high as in Brussels, Vienna?

Based on the latest survey of Housing Anywhere, an online rental platform, a one-bedroom Budapest flat’s rental price increased by 43% in just one year. The research found that you can rent a similar property in Budapest for EUR 1,100. That preceded North Italian Turin and reached Brussels (EUR 1,120) and Vienna (EUR 1,181). However, Mr Balogh believes the survey included only premium Budapest flats because the average is much below that price.

Housing Anywhere measured 125 Budapest flats but did not share any details about them. But if they are in the premium category in Vienna or Brussels, that would be quite telling about the Hungarian rental sector. They found that one-bedroom flats are the most expensive in Lisbon (EUR 2,500), Amsterdam (EUR 2,300) and Utrecht (EUR 1,950).

Mr Balogh said one should measure such prices by comparing them with the average net income. In that respect, Lisbon is extremely expensive. That is why CNN wrote about the start of a Portuguese housing crisis in August. Housing is a serious problem everywhere in Europe and concerns young employees and students.

We wrote about the fundamental change in the Hungarian e-commerce sector concerning even ingatlan.com in THIS article.

VIDEO, PHOTOS: Castle for sale on riverbank in Hungary – now at a discount!

rábasebes széchenyi castle

The Széchenyi Castle in Rábasebes, Northwest Hungary was built between 1903 and 1904. It is still one of the most beautiful buildings in the area. If you laid an eye on it: this is your chance! The castle is for sale, and now, the buyer also gets a discount. “If you’ve ever dreamed of living or running your business in such a magical place, here’s your chance, and now you can even get a discount!” the advert encourages potential buyers.

Neo-Baroque style castle for sale!

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The Széchenyi Castle for sale in Rábasebes. Source: CityCartel

This stunning Neo-Baroque style castle makes Rábasebes unique, Kisalföld writes. The building has 22 comfortable apartments, each with a living room, bedroom, bathroom and kitchenette. Although the buildings are in need of renovation, they can be preserved in the long term thanks to their local protection.

“Buy a fairy-tale castle on the banks of the Rába, in the beautiful Rábasebes!” – the advertisement begins. “With its Neo-Baroque style and stunning surroundings, this castle is guaranteed to enchant!”

The dimensions of the castle

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The Széchenyi Castle for sale in Rábasebes. Source: CityCartel

The main building of the castle is 1326 sqm and it has more than 35.000 sqm of parks. The property consists of three main parts: the reception area in the middle and a hall with a capacity of about 50 people, including a large terrace. On the top floor of the building there is a hunting hall/café.

The middle wing has a ground floor of 316 sqm, a 294 sqm storey and a 276 sqm attic. The right wing has a ground floor of 120 sqm and an attic of 100 sqm, while the left wing has similar dimensions: ground floor 120 sqm, attic of approximately 100 sqm.

There are 22 comfortable apartments in the building, each with a living room, bedroom, bathroom (toilet, sink, shower) and kitchenette. The other building on the plot also houses two more apartments and the mechanical units (gas boilers, electricity generator, diesel generator, etc.).

In need of renovation

rábasebes széchenyi castle4
The Széchenyi Castle for sale in Rábasebes. Source: CityCartel

The buildings are in need of renovation but have local protection, which ensures their long-term preservation. The castle gardens include a 1,300-metre-deep thermal spring with a temperature of more than 60 degrees Celsius and two swimming pools. The grounds can accommodate many cars.

“This magical castle is the perfect opportunity for a private estate, holiday home, private hospital, event centre, retirement home or even a luxury hotel. It promises to be a secure long-term investment!” – the advert concludes.

Location and price

The castle is located 169 km from Budapest. Instead of HUF 500 million (EUR 1.298 million), the price is only HUF 475 million (EUR 1.233 million) now.

Additional photos

Read also:

Buying property: Romanians beat Hungarians

Budapest real estate

It takes more than ten years for a Hungarian to buy a 70-sqm property, provided they saved all their money. Meanwhile, that time is only six years when it comes to a Romanian. In Slovakia, the situation is worse: there, you have to work for more than 14 years.

According to liner.hu, Deloitte’s latest research shows that real estate prices increased by 21.2% in Budapest. That is Europe’s third-biggest rise, making almost impossible to buy property in the Hungarian capital. As a result, an average 70-sqm flat costs HUF 72-75 million (EUR 187,000-195,000). In Slovakia, you have to work 14 years to pay that, while in Hungary, that time is ten years. But in Romania, it takes ‘only’ six years, if you save all the money you earn.

Of course, nobody can save all their income, so, in reality, you have to work 20-30 years. That could have been reduced with loans, but considering the 9% interest rates, that option is not viable for most.

Read also:

Good news about Hungary’s economy

Moody’s has affirmed Hungary’s investment grade rating in spite of the crisis caused by the war and sanctions, the Finance Ministry told MTI late Friday. The ministry noted in a statement that Moody’s had affirmed Hungary’s Baa2 sovereign rating with a stable outlook. Moody’s delivered a positive assessment of the Hungarian economy’s return to a path of high growth next year, while the government significantly reduces the budget deficit and public debt levels, the ministry said.

The rating agency expects Hungary’s economy to grow 3% in 2024 on the back of strong exports, a high investment rate and a pickup in consumption supported by increasing real wages, it added. Moody’s pointed to Hungary’s skilled labour force, competitive tax system and developed infrastructure as factors underpinning the growth outlook, the ministry said.

Turn in the real estate market: Rise in rent prices in Budapest stopped?

“Compared to July last year, Hungarian rents rose by 13 percent, and those in Budapest by 14 percent,” said László Balogh, the leading expert of ingatlan.com. According to his analysis, the increase in prices in the capital came to a halt due to the ever-widening range.

The increase in real estate prices in Budapest came to a halt

“In July, in a month-on-month comparison, rents both nationally and in the capital increased by 1.9 percent, according to the KSH-ingatlan.com rent index, which is understandable, since demand picked up after the announcement of the point limits. Compared to July last year, national rents rose by 13 percent, and those in Budapest by 14 percent,” said László Balogh, the leading expert of ingatlan.com.

According to his analysis, the increase in prices in the capital came to a halt due to the ever-widening offer: average rents were only HUF 230,000 (EUR 599,34) at the end of August, compared to HUF 240,000 (EUR 625,40) a month earlier.

Which is the cheapest district?

The cheapest part of the city is District XXI, where the average rent was HUF 160,000 (EUR 416,93) at the end of August. The most expensive – for an average of HUF 320,000 (EUR 833,87) – apartments in District V are offered.

The aggregated average rent in the county seats was HUF 140,000 (EUR 364,82), which represents a minimal increase compared to HUF 136,000 (EUR 354,39) a month earlier. Debrecen, Veszprém and Győr are the most expensive, the average rent in these cities is HUF 160-180 thousand (EUR 416,93-469,05). Among the cheapest are Miskolc, Salgótarján and Békéscsaba, the latter county seats are characterized by an average rent of HUF 100,000 (EUR 260,58), the analysis reads.

Are the apartment prices affordable for students?

However, the above prices are largely unaffordable for students, according to the National Conference of Student Self-Governments. Every year more and more people apply for higher education, and university dormitories are oversubscribed.

So far, students at rural universities have been more satisfied, and there has been less over-subscription, writes telex.hu. This year, this may change, as the number of students jumped, especially at rural universities: the number of admissions increased by 43 percent.

No end in sight: horror of the Hungarian rental market continues

real estate Hungary

Every month now, rent peaks are being set. In eight years, rents have doubled, not only in Budapest but also nationally. In just one year, the price of rented property has risen by nearly 14 percent.

Rent prices continued to rise in July. Both nationally and in Budapest, the increase was 1.9 percent in one month, according to the joint rent index of the Hungarian Central Statistical Office (KSH) and ingatlan.com. The number of home insurance policies also jumped, by 26 percent year-on-year, Netrisk.hu reports.

According to the KSH, rents increased in all regions of the country except Pest. Within Budapest, the biggest increase was in the transitional districts of Pest, where rents rose by 3%. The rate of nominal rent growth also exceeded the monthly rate of inflation in July, with real rents rising by 1.6 percent nationally and 1.7 percent in the capital compared to the previous month.

After a slowdown at the end of last year, the first half of 2023 has seen a faster pace of rent growth in the rental market. July saw a 1.9% increase compared to the previous month, both nationally and in Budapest, napi.hu writes.

Compared to the same period last year, rental prices increased by 13 percent nationally and by 14 percent in the capital.

Nominal rents have been rising above the January 2020 peak for about a year and a half, exceeding it by 32% nationally and 29% in Budapest in July 2023.

However, taking into account the consumer price index, real wages were 7.6% and 9.7% below their pre-pandemic levels.

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Hungarian real estate prices have skyrocketed over the past year

real estate property in budapest rental market home prices

Hungarian real estate prices got significantly higher over the past year. On average, buyers spent 3%, HUF 1 million (EUR 2,600), more on home purchases. Meanwhile, in Budapest, the average cost of buying a home has increased by more than HUF 2 million (EUR 5,200).

24.hu writes that according to Duna House’s data, the price per square metre of properties in the Hungarian real estate market ranges from HUF 30,000 (EUR 79) to HUF 3 million (EUR 7,800). The price per square metre was above HUF 1 million (EUR 2,600) for almost half of the properties in the capital sold in the first half of the year. We also know from Duna House’s transaction data that nearly half of the properties sold in Hungary this year, 49 percent, were detached houses. 37 percent of the buyers opted for a brick-built dwelling. Panel houses were chosen by only 15 percent of buyers.

The real estate prices

Károly Benedikt, Head of Marketing and PR at Duna House, said that looking at Hungary as a whole, properties sold for HUF 1 million (EUR 2,600) more compared to last year. The average price was HUF 39.7 million (EUR 104,000), while the average price per square metre was above HUF 550,000 (EUR 1,440). Based only on sales in the Hungarian capital, the average price of apartments has risen. It went from HUF 55 million (EUR 144,080) in 2022 to HUF 57.2 million (EUR 149,319) in 2023. The average price per square metre in Budapest is just over HUF 900,000 (EUR 2,560).

The price is significantly influenced by the condition of the property and whether it needs to be renovated. The size of the useful floor area is also a key factor for potential buyers. Surprisingly, there is a high demand for both large properties of up to 450 square metres and much smaller flatlets of less than 20 square metres.

The most expensive properties

According to Duna House’s data, the highest-priced property sold this year in Budapest is located on Andrássy Avenue. The panoramic house is 274 square metres, built in the 1800s. The house is in very good condition and represents luxury and high quality. The new owner paid HUF 420 million (EUR 1,1 million).

Among the homes sold in the countryside, the fourth most expensive is an apartment in Balatonfüred. The apartment is in an outstanding condition and was renovated during the COVID-19 pandemic, so it is almost new. The 172-square-metre penthouse has a large terrace and a panoramic view. The buyer paid HUF 319 million (EUR 835,500), over HUF 1.8 million (EUR 4,715) per square metre. The most expensive home in the agglomeration of Budapest is a house located in Nagykovácsi. The 230-square-metre family house with a panoramic view and outstanding condition was advertised for HUF 310 million (EUR 812,090).

Hungary’s first home savings fund might be bought by Orbán’s oligarch friend

orbán coronavirus government

Hungary’s first home savings fund, created in 1997, is for sale. It seems the Hungarian prime minister’s close friend, Lőrinc Mészáros, the wealthiest Hungarian, would like to buy it.

According to Telex, the information that Fundamenta is for sale was confirmed by multiple sources. The company has been on the market since spring. Telex wrote that Mergermarket.com, a news outlet specialised in upcoming transactions, also wrote about the purchase option.

The big question is who will buy Fundamenta. Currently, there are three applicants: OTP, Erste, and Lőrinc Mészáros’s MBH megabank. Mr Mészáros is the wealthiest Hungarian who won public procurements and EU applications one after the other. Ten years ago, he was just a businessman, but Orbán’s frienship made him the wealthiest Hungarian. Therefore, many think in Hungary that OTP or Erste have no chance to acquire Fundamenta.

Orbán-close oligarch competes with Erste

According to Telex’s latest information, OTP jumped out of the business after some analysis. MBH and Erste remained, Telex’s sources confirmed. Concerning the advisors, Telex believes Fundamenta’s is Deloitte, Erste’s is Ernst & Young, while MBH’s is PwC.

Read also:

Lőrinc Mészáros and his wife:

Some sources said the two companies must finalise their bid until end-September. The home savings sector in Hungary is searching for a place after the government ceased its support program in 2018. Want to read about Hungary’s property market? Click HERE.

Here are the most popular Hungarian settlements where foreigners buy property

real estate property in budapest rental market home prices

There are three main areas where foreign citizens purchase real estate in Hungary. First and foremost, Budapest, the astonishing capital of the country. Secondly, settlements close to the border also tend to be popular. Thirdly, holiday areas attract interest too. However, overall, the number of foreigners buying property in Hungary is relatively low.

According to index.hu, the moderate influx of foreign buyers don’t provide solutions to the ailing Hungarian real estate market in 2023. Based on Otthon Centrum’s register, only 2.6% of their customers are foreigners. Germans are the most active, with a market share reaching 30%. Romanian citizens are in the second, while Slovakians are in the third place. But, of course, goals are different and probably many of the Romanian and Slovakian citizens buying property in Hungary are of Hungarian ethnicity. They come to Hungary because property is cheaper here than back at home.

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From Slovakia, thanks to Schengen, they can travel to Hungary as if there were no borders. Because of Austria’s opposition, there is still a border control between Romania and Hungary, but usually the process is quick. Ukrainian citizens (they are also mostly Hungarians living in Transcarpathia) come to Hungary and buy property in East Hungary because of the Russian invasion and the ongoing war. There were some examples for American, Vietnamese and Egyptian buyers as well.

The number one target of foreigners is Budapest. However, settlements close to the border are also popular. Furthermore, holiday areas such as Lake Balaton or Lake Velence, Siófok, Zamárdi and Gárdony attract interest too. Foreigners are mostly interested in family houses or brick flats. But only 13% of them invest in newly-built properties while buying a panel flat is out of option for them. The rental market shows slightly different trends. 61% of the foreign tenants decide on brick, and 13% go for panel flats.

PHOTOS: Legendary Budapest beach for sale

Tungsram beach

The beach is located on the north-western edge of Újpest, at the same elevation as the southern tip of Szentendrei Island. The area next to the Danube River embankment was used as an outdoor beach from 1938 until 2006 when it became disused. The Tungsram, or “Tungi”, was a favourite spot for Újpest residents until the turn of the millennium. Many people remember it with nostalgia.

Charming beach for sale

As napi.hu wrote, after the regime change in Hungary, the beach lost its popularity. In 1990, the American company General Electric bought Tungsram and wanted to get rid of the beach and its redundant buildings for financial reasons. There was only one serious interested party, a Dutch company which wanted to create an aqua park on the site, but soil tests prevented this. The beach was closed in 2006 and has not been used ever since. The boathouse on the site is currently under the care of the Újpest Kayak Association. After-school sports lessons are held there for youngsters. More information on the beach for sale is available HERE.

Environmental remediation

The beach was built on an artificial island on the inside of the dam. The island was connected to the left bank of the Danube by a bridge. The construction of the dam resulted in a natural recharge process in the area enclosed by the dam. This area was gradually filled artificially from the 1950s onwards. It was completely filled in 1974. Industrial materials and waste from construction and demolition debris were also used for filling. It is assumed that the industrial and commercial enterprises along the Váci Street and the population were also involved in the filling process.

The authorities requested the owner to take soil and groundwater samples. The owner was required to share the results publicly. Based on the results of the investigation and by setting an individual pollution limit value, authorities declared the environmental remediation complete.

The history of Tungsram

The Tungsram beach, originally UTE Dunafürdő, or just “Tungi”, opened on the 10th of July in 1938. Officially, it closed for good on the 26th of August 2004. The beach covered an area of 30,000 square metres, including a 50×20 metre competition pool, a 50×25 metre guest pool and a children’s pool. The beach had a capacity of well over 10,000 people, it was a simple place, but people liked it for that reason. There was also a boathouse on the site, which could accommodate 200 boats, with boaters’ cabins and office spaces. The beach soon became a favourite place for the people of Újpest and was a hive of activity until the 1980s. Here are some photos of the beach during its golden age:

Tungsram beach
Source: Fortepan
Tungi beach
Source: Fortepan
Tungsram
Source: Fortepan
Tungsram beach
Source: Fortepan