real estate

Massive changes coming to the Hungarian real estate market: sellers are suddenly willing to negotiate?

budapest_real_estate_building_flat rent autumn_panorama dnh_kató_alpár_

The changes in property prices are barely noticeable at the moment. However, based on the data of otpotthon.hu, sellers have started responding to the shifting trends in the real estate market, and more and more contemplate price reductions. 

Real estate for sale up by 40 percent

In the second quarter of 2023, compared to the same period in 2022, the number of real estate ads for sale increased by nearly 40 percent. At the same time, properties for rent dropped more moderately, by 18 percent. In the period from April to June 2023, the most ads for real estate for sale were posted in Budapest, followed by Pest County, while the fewest were listed in Tolna and Vas Counties, writes penzcentrum.hu. In terms of average square meter prices, in the second quarter of 2023, they rose the most in newly built residential parks, by 26.7 percent compared to the same period last year. During this period, the price of apartments shot up by 5.36 per square meter, and that of houses by 3.7 percent. Compared to the previous year, however, the prices per square meter of vacation and weekend houses fell by almost 11 percent.

Real estate owners are willing to reduce prices

The plummeting prices can already be observed when we look at ads posted earlier than the second quarter of 2023. Based on the data of the real estate advertising portal, between January and June 2023, there was no change in prices in the majority of the ads (68 percent), however, in more than a quarter of the cases (28 percent), prices moved downward; and in only 4 percent of the cases did the advertisers increase the prices compared to the originally stated figures.

“The statistics show that there is a psychological limit for advertisers when it comes to price reduction,” says Zsuzsa Lipták, managing director of OTP Otthonmegoldások Ltd. “The willingness is most evident among those who have been advertising for 3-6 or 6-12 months. 37.7 percent of those who advertised for a quarter to a year and a half, and 38.5 percent of those who advertised for a year and a half gave up on the original price in the first half of 2023. These are the properties that were added to the advertising database at a time when inflation was skyrocketing and utility prices were soaring, so it can be assumed that the sellers did not realise the significant changes taking place in the real estate environment at that time,” explained the expert.

Sellers stick to every penny in rural Hungary

In the light of price changes in rural areas in Hungary, it can be seen that the initial advertising prices remain the same in the majority of the cases (70 percent), and only in a quarter of the cases (26 percent) they drop slightly. In Budapest and Pest Counties, 65 percent of the amount indicated at the first appearance of the ad is left unadjusted, and based on the data, the chance of a reduction is slightly higher (31 percent) compared to rural regions.

Brutal crash in Hungarian property market: unpredictable future

the most expensive street in hungary budapest

Prices rose again on the Hungarian property market in the first quarter of 2023, accompanied by a strong fall in sales, according to the latest housing market reports from the Hungarian Central Statistical Office and the central bank (MNB). According to an expert, autumn will be the earliest time to see whether this is just a slowdown in the downturn, or whether a recovery in sales could start to take hold this year.

Huge decline in demand

The first quarter of this year has not seen a halt to the decline in demand that started last year. According to the latest report of the Hungarian Central Statistical Office (KSH), the number of property sales was 31 percent lower than a year earlier, OTP Ingatlanpont said in a statement.

This decline affected the new and second-hand housing markets in similar proportions. At the same time, established prices have started to rise again after falling in the previous quarter. New builds accounted for the bulk of the 2.5 percent average increase (6%), but second-hand homes also saw nominal growth (1.9%). Thus, year-on-year, price increases of 13.6 and 9 percent were recorded in these two sub-markets respectively.

However, house price growth has still lagged behind the general rise in consumer prices for the third quarter running. As a result, real prices at the beginning of this year were only at the level of two years ago, OTP Ingatlanpont underscores.

Different situations in villages and towns

Today, the market shows a distinctly different face in villages than in towns. While in the latter, the decline in nominal prices slowed down at the beginning of this year, in the villages, the decline has continued for the third quarter. Therefore, in smaller settlements, the average home is now around 5.6 percent cheaper than it was a year earlier.

Even if the overall picture is mixed, the slowdown in price falls in the first quarter may also indicate that the market might be over the nadir of the downturn. However, according to David Valkó, it is still too early to say.

“While the summer is a quieter time for real estate, the conditions that could combine to determine a rebound are very much in flux.”

These include, first and foremost, the fall in inflation and the timing of when lending rates could fall to the 6-7 percent level that could start to drive demand growth.

Horrific prices in the Hungarian rental market: here is what to expect

budapest real estate

Lots of people struggle with not being able to rent a proper place in the country, especially in the capital. In Budapest, average monthly rents exceed HUF 200,000 (EUR 519.60). On top of this, there are utility bills and a deposit. The latter now corresponds to 2-3 months’ rent. Real estate experts point to the same problem: paying two months’ deposit plus one month’s rent can cost HUF half a million (EUR 1300) before even moving in.

Extremely high rental prices

As we reported, with the announcement of the university admission threshold scores on 26 July, the rental season started in Hungary. The season is to kick off with especially high monthly rents, according to real estate experts, napi.hu writes. Based on its own data, Duna House (DH), a real estate agency, reported to the Hungarian News Agency, MTI, that the average monthly rent in the capital city in July this year exceeded HUF 225,000 (EUR 584.55).

Smaller apartments, or flatlets, can be rented for HUF 150-170,000 (EUR 389.70-441.66). Two-bedroom apartments are for rent for HUF 250-350,000 (EUR 649.50-909.31) and three-bedroom apartments for HUF 350-500,000 (EUR 909.31-1300) per month on average in the most popular areas of Budapest.

2-3-month deposit

Generally, landlords ask for a two-month deposit when moving in. However, if the tenant wants to move in with a pet, a 3-month deposit is expected, napi.hu warns. Among rural university towns, prices in Debrecen are around HUF 200,000 (EUR 519.60). Average rents in Szeged and Sopron are HUF 150,000 (EUR 389.70), in Pécs HUF 130,000 (EUR 337.74), while in Miskolc, prices are around HUF 110,000 (EUR 228.78).

To avoid misunderstandings, a written tenancy agreement is recommended for both tenants and landlords. It is best to have it notarised. This way, it is an authentic instrument and both parties can more easily enforce the terms, napi.hu recommends.

Budapest rental market

According to data from ingatlan.com, the average monthly rent in Budapest was HUF 240,000 (EUR 623.62) at the end of July. The districts with the largest selection (3, 8, 11 and 13) had average rents of 220-250,000 (EUR 571.56-649.50). Among the most expensive districts were districts 1, 2 and 5. In these places, rents range from HUF 300,000 (EUR 779.41) to HUF 368,000 (EUR 956.07).

Be quick! You will not find a flat to rent in Hungary soon

Hungary-Budapest-Chain-Bridge

Experts said that the rental market regularly begins to flourish after the announcement of the higher education entrance points. However, this year is different. The market has already started to show signs of booming, so you should be quick to catch the best options.

According to Blikk, a Hungarian tabloid, on an annual comparison, demand has risen by 7 percent since April. Based on the latest analysis of ingatlan.com, Hungary’s biggest real estate advertising centre, demand is rising, while supply received a boost in June and July in the country.

The reason is that many lease contracts will end in the following weeks and months. Owners plan increases due to the general inflation, and they regularly inform their subtenants about that decision. Therefore, many of them already started to look for other, cheaper flats.

Blocks of flats in Budapest
Blocks of flats in Budapest. Photo: BKK/FB

Supply started to increase after May. In June, the positive rate was 5, while in July, it was 7 percent. The reason is the gradual price growth. The index of the Hungarian Central Statistical Office (KSH) and ingatlan.com shows a general 15 percent rise in the sector compared to last year. László Balogh, ingatlan.com’s leading analyst, added that due to the rise in the rental fees, many subtenants would like to find cheaper accommodation before the big boom caused by the announcement of the higher education entrance points. As a result, many flats become empty, and owners would like to fill them with new people, basically future students, who would pay more money than the previous subtenants.

HERE you may read about 20 Dutch families moving into a tiny Hungarian village in Nógrád county. Want to buy real estate in Hungary? Balaton is one of the most expensive regions, while home-ownership is virtually impossible in Budapest.

Prices fall in one of the most popular house-buying destinations in Budapest

budapest property market airbnb rental real estate

The greener label has driven up demand for the already popular panel homes by an average of 32 percent last year in Budapest. Now, the average prices per square metre have fallen in 8 out of 12 of the Hungarian capital’s residential districts.

What property prices to expect in Budapest now?

In the first half of 2023, the average price per square metre of flats in Budapest’s residential districts eased by 3 percent, Duna House (DH) wrote in a statement. 8 out of the 12 residential estates in their study show a price decrease of between 3 and 22 percent, Forbes reports.

Based on the statistics of all the apartments sold in Budapest, the average price per square metre is over HUF 704,000 (EUR 1,863) and the average purchase price is over HUF 38 million (EUR 100,583).

The Havanna residential area seems particularly attractive this year

After the increase in the previous year, prices have corrected significantly, by 14-15 percent, in Vizafogó (District 13) and Fehérvári út (District 11). Compared to 2021 prices, in 2022, the price increase was most significant for the flats on Bécsi Street. As for the District III housing estate, this year saw the most significant decrease of 22 percent.

The properties in the Havanna residential area (Havanna lakótelep) in District 18 are looking particularly attractive this year. Thanks to the affordable prices seen in 2022, the popularity of the estate has soared, with the highest number of clients contracted by the real estate agency DH in 2023.

Places with price per square metre below EUR 1,588

Prices per square metre increased by a further 9 percent for flats in Újpest (District 4). In 2023, only Gazdagrét (in District 11) was more expensive: despite a 4 percent decrease, buyers paid HUF 865,000 (EUR 2,289) per square metre, Forbes writes.

Based on the data of flats sold this year, Óhegy (in District 10) is currently the best choice in terms of price. There, it is possible to purchase property for under HUF 600,000 (EUR 1,588) per square metre.

Declining interest, but extremely high prices for Balaton real estate

tihany balaton

Demand in the holiday market has decreased compared to previous levels in Hungary at Lake Balaton. However, there are still places where the price per square metre is above 2 million (EUR 5180).

Reduced demand

In the first five months of the year, the volume of sales in the Balaton real estate market was 40 percent lower than in the same period last year, napi.hu reports.

One reason for this is that there has been a decline in investment buying. In addition, the majority do not want to invest work, time and money in a back-up home that needs renovation. Meanwhile, a holiday home in good condition and not in need of renovation is still not cheap to buy.

Falling demand, rising prices

Despite falling demand, the average price of second-hand holiday homes has risen by 25 percent. It increased from HUF 21.7 million last year to HUF 28 million this year.

However, even higher price increases can be seen when looking at prices per square metre. Here, the average price has increased by 39.5 percent, from HUF 385,000 in 2022 to HUF 537,000 this year.

Where is the most expensive?

The average price per square metre in the settlements along Lake Balaton is HUF 744,000, 22 percent higher than in the first five months of 2022.

The most expensive were, of course, in Siófok and Zamárdi. Here, the average price per square metre exceeded HUF 1 million (EUR 2590). New-build properties are even more expensive, with average prices approaching HUF 2 million (EUR 5180) per square metre.

The most expensive settlement is Balatonakarattya, where the average price for a newly-built apartment is HUF 3 million (EUR 7700) per square metre, while the other extreme is Zánka, where the average unit price is HUF 733,000 (EUR 1899).

The average price around Lake Velence is HUF 700-800,000, while at Lake Tisza, you can get a holiday home for HUF 300-400,000 per square meter.

Immense positive turnaround in Hungarian property market

budapest property market airbnb rental real estate

We have good news for those planning on investing in real estate in the Hungarian capital: the price increase of newly built properties has stopped. The Hungarian real estate agency Otthon Centrum recorded a mere 1.3 percent increase in the last quarter, after last year’s extreme price rises. The analysis also showed that the price gap concerning average property prices between districts has never been so wide.

Average property prices increased by only 1.3 percent

The average price per square metre of apartments offered in new construction projects is currently HUF 1.592 million (EUR 4,268). That represents an increase of only 1.3 percent compared to the previous quarterly survey, said the head of analysis of Otthon Centrum, summarising the new housing market in the capital, as reported by Pénzcentrum.

Head of analysis Gábor Soóki-Tóth said that on a year-on-year basis, prices per square metre are 12.2 percent higher today than in the same period last year. This is mainly due to last year’s extreme price increases. In Budapest, the average price per square metre varies between HUF 932,000 (EUR 2,498) and HUF 3,081,000 (EUR 8,259).

“There has never been such a price difference between districts before,”

the expert said.

338 new projects; most expensive districts in Budapest are the same

According to a June survey by the Otthon Centrum, 338 new housing projects have been launched in Budapest. 26,700 apartments are being built and developers are offering an average price of HUF 1.592 million (EUR 4,268) per square metre. These figures are broadly in line with the previous quarter. The number of projects increased by 2.4 percent, the number of apartments by 1 percent and the price per square metre by only 1.3 percent.

The order of the most expensive districts is the same as in the previous quarter. District V continues to lead the way with an average price per square metre of HUF 3.081 million (EUR 8,259). It is followed by District II with a unit price of HUF 2.99 million (EUR 8,015). District XII is third on the price list with a price per square metre of HUF 2.90 million (EUR 7,774). In fourth place is District I with a median price of HUF 2.64 million (EUR 7,077) per square metre. The only other district with an average price per square metre above HUF 2 million is District VI, with an average of HUF 2.13 million (EUR 5,710).

Housing crisis: Home-ownership virtually impossible in Budapest

real estate property in budapest rental market home prices

The real estate boom in Hungary has been growing in recent years, which is why prices in the millions of square metres are not uncommon in the capital. Based on Q1 2022 data, Budapest continues to have the highest house prices in Hungary. The average price per square meter of real estate in the capital now stands at HUF 810,000 (EUR 2,181).

However, the price gap between rural cities and Budapest has been narrowing. Cities like Veszprém and Debrecen are witnessing significant increases in property prices. Nevertheless, the expectation is that the price gap between the capital and other parts of the country will persist in the coming years, writes Pénzcentrum.

Local differences

District V remains the most expensive district in Budapest, with an average price per square meter of HUF 1.16 million (EUR 3,120.93). Other expensive districts include I, II, and XII, where the average price per square meter exceeds HUF 1 million (EUR 2,690.45).

On the other hand, the cheapest district is XXI, with an average price per square meter of approximately HUF 598,000 (EUR 1,610). This price disparity between the most and least expensive districts amounts to a factor of 2.3.

Considering the average net income in Budapest, which currently stands at HUF 422,000 (EUR 1,136), it is interesting to examine how long it would take to purchase a property in different districts of Budapest. Assuming one can save 100 percent of their earnings and buy a property at the average price per square meter, the results indicate that owning a property outright is virtually impossible.

In districts such as V and I, it would require 19 and 18 years of salary, respectively, to afford an 82-square-meter property. In districts II, XII, and XI, the required savings period is 17, 17, and 16 years, respectively. The cheapest district, XXI, necessitates 10 years of savings, while districts XXIII and XX require approximately 10 years each.

Role of the state

The Housing Affordability Index (HAI) measures the number of times the income of a household with two average incomes is required to purchase an average home with a loan. If the HAI is above 1, the family can purchase a home on credit without financial strain.

However, recent years have seen a decline in home affordability for Hungarians. By 2023, only families with three children would be able to afford a new home in Budapest without excessive financial burden. The abolition of the urban CSOK (Family Home Creation Support) programme has further exacerbated the situation, making it practically unaffordable for childless couples to buy a home on credit.

What’s to come?

The discontinuation of the CSOK programme, coupled with the rising housing prices, is likely to reduce housing demand. However, Budapest may be less affected due to its already high property prices.

Families with two children may still be able to afford second-hand properties with loans, although the affordability threshold is becoming increasingly challenging to meet. Without state support, the prospect of purchasing a new home is financially out of reach for most families.

Home ownership is becoming a luxury that is primarily accessible to the affluent or families with multiple children. The challenges of purchasing a property without a loan and the diminishing role of state support have made it exceedingly difficult for the average Hungarian to fulfil the dream of owning a home in the capital.

Unbelievable property prices in Budapest: EUR 2700 and above for one square metre

budapest buda castle building flat property colors kató alpár Daily News Hungary

The Hungarian capital is getting extremely expensive in terms of property prices. The number of districts in Budapest where the average price per square metre is above HUF 1 million (EUR 2705) has doubled.

Price increases in Budapest’s property market

In Budapest’s districts, prices have risen by an average of around 9 percent this year. What is more, 11 out of the 23 districts show an increase of over 10 percent, Forbes reports. Only in two districts, Csepel and Újpest (districts XXI and IV), has Duna House, a Hungarian real estate agency, seen a decrease or stagnation in the price per square metre.

“According to Duna House’s sales data, in 2022, only two districts in Buda, Districts I and XII, and the narrowly defined downtown of Pest, i.e. District V, were among the districts with HUF 1 million per square metre prices. However, in 2023 the number of districts was increased by three more,” says Károly Benedikt, Head of PR and Analysis at Duna House.

More and more districts with HUF 1 million per square metre prices

Based on sales in the first five months of this year, District II has joined the HUF 1 million per square metre districts as a newcomer. Here, the price of property has jumped by more than a quarter compared to last year. According to this, in 2023, anyone wishing to settle or invest in real estate in District 2 of Budapest will have to pay more than HUF 1.2 million (EUR 3 244) per square metre.

The average amount spent on property purchases in District II exceeded HUF 120 million (EUR 324,450) based on transactions in 2023.

District XIII has also joined the list of districts with an average price per square metre above HUF 1 million. In the district, you can buy a dwelling for 4 percent more than the average price in 2022. On average, buyers bought apartments for HUF 55.5 million (EUR 150,083), approximately 55 square metres, Forbes explains.

The cost of buying a home in Újbuda has increased by only 2 percent compared to last year. However, the price per square metre has also risen to over HUF 1 million. Buyers in the district spent an average of HUF 63.3 million (EUR 171,176) on 63-square-metre apartments.

The cheapest Budapest district this year

In 2023, Csepel overtook the XX district to become the cheapest district in the capital. Anyone looking to buy a home in Csepel can expect to pay an average price of around HUF 550,000 (EUR 1,487) per square metre, while the average amount spent on property this year was just over HUF 31 million (EUR 83,823).

Check out the most expensive flatlet at Lake Balaton!

Lake Balaton

As we have experienced, everything is getting more and more expensive due to inflation. Real estate and rent prices are no exception from that. However, this 36-square-metre flatlet at Lake Balaton is rather overpriced.

Pénzcentrum reported that there is an extremely expensive flatlet for sale at Lake Balaton. Because of the current situation and inflation, people tend to be more conscious about what they spend their money on. Therefore, real estate is not a very popular choice, not even as an investment. 2-3 years ago, there was a high demand for weekend homes at the “Hungarian sea”, people were bidding for these houses. This year, the real estate market is not experiencing this level of interest. Although, most holiday-home owners want to get rid of their houses. There are 20 percent more homes listed this year than last year.

Pricing

Despite the fact that there is no high demand for these houses, the prices have skyrocketed. Fortunately, this drastic increase in holiday-home prices has slowed down (in some cases it even stopped) in the last couple of months. If we are lucky enough, we can find some holiday homes listed for a lower price than a year ago. This does not mean that now is a good time to buy property at Lake Balaton. The average price is still much higher than it was last year. Homeowners are not too desperate yet, so they are not willing to accept much lower offers or lower the prices listed. However, if you are looking for a cheap holiday home in the countryside, you might want to read our article HERE.

Unreasonably expensive flatlet

There is a very interesting flatlet listed on one of the popular real estate portals. There is not much information provided about this flatlet. The advertisement only says:

The property is located on the 2nd floor of the Hotel Golden, on the waterfront promenade of Balatonfüred, with a covered terrace and its own heat pump heating and cooling system. Also for sale, in the garage, is a 25-square-metre storage garage with lockers, a work table, a freezer and a wine cooler.

The price of this 36-square-metre flatlet is merely HUF 289 million (EUR 781,300). It is way higher than the average price in this area. The average is HUF 830,000 (EUR 2,250)/square metre in the area, while the average in Balatonfüred is HUF 1.59 million (EUR 4,300)/square metre. One square metre of this flatlet is HUF 6.42 million (EUR 17,360), just a bit over the average… For some reason, the advertisement is not properly filled out with all the information, and the pictures are not very high quality either.

Balaton flatlet
Source: https://ingatlan.com/33611079?fbclid=IwAR0ijw8kszh3_xYxyITeaHNcFJZ7dnszeFLcXBEg5_voyuxqAoxmGycBXmo

Looking to buy a stadium in Hungary? Then here is your chance

Salgótarján stadium

In Salgótarján, Hungary, the Szojka Ferenc Stadium has been put up for sale on the internet. Anyone can buy it if they have an extra HUF 336 million (EUR 907,781).

Salgótarján BTC’s stadium in the third division of the Hungarian football league has been put up for sale, writes Pénzcentrum. The 1,344-sqm site is a three-storey building next to the pitch, which houses changing rooms, bathrooms and offices. On the upper floor, there is a cafeteria and a break-out room.

In 2017, the stadium was due to be redeveloped and expanded to accommodate 5,000 people. This did not materialise, although the plans were ready, the rise in construction prices made the project impossible. Instead, a new stadium will be built.

The real estate agent responsible for the sale of the stadium has also advertised the somewhat dilapidated stadium on TikTok.

@halaszvivieningatlan♬ eredeti hang – Halász Vivien

Affordable holiday homes in the Hungarian countryside? It’s possible!

thatched house tihany balaton

Finding affordable holiday homes in Hungary has become increasingly challenging. However, there are still opportunities to purchase fabulous properties for a fraction of the usual cost. Let’s take a look at the current market for countryside weekend houses, including price trends, popular areas and the importance of energy efficiency.

Sales of holiday homes have experienced a significant decline in the first five months of this year, dropping by 40% compared to the same period last year. Despite this, the average prices have risen from HUF 22.8 million (EUR 60,000) to HUF 28.4 million (EUR 76;000). The market is seeing fewer transactions, but those who do buy tend to invest in higher-quality properties, writes Hello Vidék.

Market trends

Just like the housing market, the holiday home market is witnessing an increase in supply and a decrease in prices. Buyers are now starting to pay closer attention to the energy efficiency of buildings, considering factors such as heating systems, insulation and well-sealed windows. Proper energy parameters are crucial for those intending to use the properties beyond occasional weekend stays.

Lake Balaton, the most expensive region, has seen an average price increase of 22%in the first five months of this year. Prices per square meter are highest in popular settlements like Siófok and Zamárdi, exceeding HUF 1 million (EUR 2,670). The farther you move from the immediate lakeside, the lower the average price drops. Lake Velence offers similar price levels to the western basin of Lake Balaton, while Lake Tisza presents more affordable options.

Affordable Options

While the lakeside properties near Lake Balaton are costly, there are still affordable options available in the countryside. Websites like Ingatlan.com showcase various properties, including former cellars with arable land. Listings within the HUF 1 to 2 million (EUR 2670-5340) range are scarce, but some exist.

For example, this 15-square-meter cottage in Balmazújváros sits on an 800-square-meter plot.

https://www.hellovidek.hu/images/site/articles/inline/2023/06/1686823131-lMQGf3R7F_md.png
Source: Ingatlan.com

Additionally, a 21-square-meter cellar-press house in Lenti offers a panoramic view and a large potential for expansion.

https://www.hellovidek.hu/images/site/articles/inline/2023/06/1686823117-T4Vld8iBY_md.png
Source: Ingatlan.com

Délegyháza, situated near Lake Szakura, features a dome-shaped holiday village. This newly developed area offers special, unique accommodations, with 90 dome-shaped buildings available for purchase. The first 15 domes in Délegyháza are priced at HUF 4.2 million (EUR 11,240).

https://www.hellovidek.hu/images/site/articles/inline/2023/06/1686823703-6dNtng698_md.png
Source: Ingatlan.com

However, if you are swimming in cash, we also have something just for you! Balatonudvari presents a luxurious 10-bedroom holiday home with a private swimming pool and 4,159 m2 of land, though it comes at a price of almost HUF 1 billion (EUR 2.5 million).

https://www.hellovidek.hu/images/site/articles/inline/2023/06/1686834567-VOdyyZy44_md.png
Source: Ingatlan.com

Rent prices skyrocket in Hungary: how long will the rise last?

Housing market Rent prices Budapest downtown

Rents continued to rise in May in Hungary, according to the latest data from the KSH-ingatlan.com rent index. Nationally, the rise was 1.8 percent. Meanwhile, in Budapest, rent prices increased by 0.6 percent in just one month. On an annual basis, average rent prices went up by 15.6 and 16.5 percent respectively, according to the latest data.

Prices are still rising

In 2023, rent rises have gained momentum. However, the rate of increase is below the rate of inflation. Taking inflation into account, May rents are 11 percent below the national real rent index’s record high in August 2019, Portfolio reports.

The rental market has also seen an increase in supply, which can be seen as a prelude to the summer season, Portfolio explains. In mid-June, tenants in Budapest and nationwide had 14-18 percent more apartments for rent to choose from. The national rental supply consists of more than 11,800 apartments and houses for rent. According to an expert from ingatlan.com, if the supply growth persists, it could put a brake on rent increases.

Rent prices in Budapest

According to ingatlan.com, the average rent for apartments advertised by owners in Budapest in mid-June was HUF 230,000 (EUR 615,49). The highest rents were in Districts 2 and 5. There, apartments were offered for HUF 350-350,000 (EUR 936,84).

The average rent was HUF 225,000 (EUR 602,09) in District 11 and HUF 240,000 (EUR 642,36) in District 13, which are the most popular and the neighbourhoods with the highest supply. Meanwhile, the cheapest districts include Districts 17, 21 and 23, where apartments were offered to tenants for HUF 150-155,000 (EUR 401,47-414,88).

Rent prices across the country

The average rent in the county seats is HUF 130,000 (EUR 347,97). However, there are significant differences. Veszprém is the most expensive city with a rent of HUF 167,000 (EUR 447). It is followed by Székesfehérvár, Debrecen and Tatabánya with HUF 160-165,000 (EUR 428,24-441,81). Salgótarján and Békéscsaba remain among the cheapest cities, with rents of HUF 90-90,000 (EUR 240,84).

Featured image: illustration

PHOTO GALLERY: Hungarian once again among the best in the world real estate developments

FIABCI Tisza

Hungarian real estate developments won five silver medals in this year’s FIABCI World Prix d’Excellence, sponsored by the Wall Street Journal.

The International Real Estate Association, which operates in more than 60 countries, was founded in 1951. The International Real Estate Development Excellence Awards are held annually to select and recognise the most successful real estate developments.

The main criteria for the evaluation are the concept and outcome of the property development, the architectural and urban design quality, the quality of the construction and the duration of the implementation. Hungary has won 32 first and 41 second prizes over the last 25 years.

Heritage conservation and community facilities

The Hungarian National Bank Supervisory Centre and Money Museum won the second prize in the Heritage Protection category. The building is controlled by an intelligent monitoring system to minimise energy consumption. The roof is also equipped with a small solar power plant, which reduces the building’s electrical energy needs.

The HUNGEXPO Congress and Exhibition Centre also won second prize in the Community Facilities category. In addition to the expansion and renovation of the facilities, the entire environment was renewed. 21st century auditorium technology, a multifunctional hall, LED walls, steel and glass elements are all part of the new complex.

Office building and low-rise residential building

The Arena Business Campus, an environmentally conscious, ergonomic megaproject, also won second prize. The 72,000-square-metre, four-building concept includes a large internal garden and pedestrian plaza. The excellent accessibility of a sustainable and pleasant workplace will also benefit future generations.

Flacto Apartment House in the 9th district of Budapest consists of 8- and 10-storey units. On the ground floor, there is a 300-square-metre community area, a spacious interior, 24-hour reception, bicycle storage, an electric car charging centre, a gym, billiards and a games room.

Community infrastructure at Lake Tisza

The Poroszló-Tiszafüred cycle path was built separately from road traffic. Thanks to the development, the whole lake can now be safely cycled around. The design of the bridges is based on a continuous wave geometry that resembles the lake.

Hungarian real estate industry meets turning point: is there a way out?

construction-workers

The Hungarian construction industry is currently grappling with a major issue: insufficient demand for new homes. The data indicates that fewer people are interested in purchasing new homes, leading to a decline in investment and an increase in completed but unsold properties.

One notable trend is the rising number of completed homes that have yet to find buyers. This indicates a mismatch between supply and demand, with more properties being built without having an owner lined up. Although there have been some price reductions, they are impacting fewer homes, writes Pénzcentrum.

Lack of demand

Insufficient demand is the primary obstacle affecting domestic production, as indicated by the Hungarian central bank’s (MNB) Housing Market Indicator. The last time the situation was this bad was in 2020, during the economic difficulties caused by the COVID-19 pandemic.

Although there are signs of improvement in the availability of raw materials, it may be due to fewer construction orders rather than an oversupply. The indicator for financial constraints has started to decline since February, but this may not necessarily mean that people have more money. Instead, it suggests that only those with sufficient financial means are initiating building projects.

Less construction and empty houses

The backlog of construction orders and the share of new orders have both shown a declining trend. Construction costs and house prices have also begun to slow down, although this does not imply a decrease in real estate prices.

Financial institutions are allocating less money to the building of new homes. In September 2022, customers were borrowing over HUF 10 billion per month for new home construction. However, by February 2023, this amount had fallen to under HUF 4 billion.

The MNB’s survey examined the statistics for new housing projects in Budapest, revealing a growing number of completed but vacant apartments in the capital. The countryside has experienced a similar trend, with a rising number of vacant apartments and unsold properties under construction.

Conclusion

In conclusion, the Hungarian construction industry is facing the challenge of insufficient demand for new homes. This has led to an increase in completed but unsold properties and a decline in orders. The labour shortage in the industry has improved, but financial constraints remain a concern.

While some improvements have been observed in the availability of raw materials, it may be due to reduced demand rather than increased supply. The market for new homes has become more balanced, with a decreasing percentage of repriced properties having increased prices. However, the overall repricing rate remains low, and the construction industry continues to face significant challenges in the Hungarian housing market.

Significant change coming for all in the Hungarian property market

green house property

Significant discounts can be expected when applying for green loans on the market with a view to energy saving when buying a property, the financial intermediary of Duna House has pointed out, based on a summary by Credipass.

According to their statement, the possibility to apply for green loans under the Funding for Growth Scheme (FGS) ended a year ago. However, some banks continue to offer green loans on favourable terms on the market. The statement pointed out that Hungary still has a large number of properties with poor energy rating, making the greening of the housing stock increasingly urgent.

“When looking for a property, it is becoming increasingly important for interested parties to know the energy characteristics of the property in question, and how much of an investment a major renovation would represent,”

the statement clears.

They also point out that, as of April this year, market green loans are now also available in the form of Certified Consumer-Friendly Housing Loans. With the extension of the loan objectives, this type of loan can be applied not only for the construction of new housing, but also for the modernisation of second-hand property.

The green credit target must be verified by an energy certificate, the cost of which is covered by the bank, for example in the case of a consumer-friendly loan. The bank must check that the green credit targets have been met within 12 months, either by an on-site inspection or by requesting invoices for the work carried out.

It is also important to note that if the debtor fails to meet the green credit target set in the individual contract within the deadline set by the lending bank, the bank may retroactively enforce the disbursement fee, the cost of the Energy Performance Certificate (EPC) and the additional fees and costs related to the green credit target, Duna House summarised, as reported by MTI.

Unimaginable property prices in Budapest’s illustrious Castle District

buda_castle

Budapest is extremely popular among foreign investors and property buyers. However, if they decide to buy real estate in Budapest’s more popular districts, they have to reach deep into their pockets. In this article, we will show you the property prices in the Hungarian capital’s breathtakingly beautiful Castle District.

According to data from the Hungarian Statistical Office (KSH), by the third quarter of 2022, taking the 2015 level as 100, the domestic house price index reached 256 percent. However, both the rate of price increases and sales have clearly slowed down. It was to be expected that the steady double-digit increase in house prices could not last forever. A weak decline in interest was already noticeable in the spring of 2022, Pénzcentrum explains.

In Budapest, like the national average, house prices are rising steadily but at a slower pace. For newly built apartments, buyers can expect to pay around HUF 1.5 million (EUR 4070) per square metre. Pénzcentrum took a look at one of the most attractive parts of Budapest, District 1, and examined which streets are the cheapest and most expensive to buy property in.

The 20 most expensive streets in District 1 of Budapest

  1. Orom Street (HUF 2.514 million/sqm) (EUR 6821)
  2. Dísz Square (HUF 1.528 million/sqm) (EUR 4146)
  3. Úri Street (HUF 1.455 million/sqm) (EUR 3948)
  4. Hunyadi János Street (HUF 1.168 million/sqm) (EUR 3170)
  5. Tigris Street (HUF 1.110 million/sqm) (EUR 3013)
  6. Lánchíd Street (HUF 1.107 million/sqm) (EUR 3005)
  7. Mihály Street (HUF 1.071 million/sqm) (EUR 2907)
  8. Bem Quay (HUF 1.062 million/sqm) (EUR 2882)
  9. Szirtes Street (HUF 1.042 million/sqm) (EUR 2828)
  10. Kuny Domokos Street (HUF 1.034 million/sqm) (EUR 2806)
  11. Ponty Street (HUF 1.024 million/sqm) (EUR 2779)
  12. Aladár Street (HUF 1.022 million/sqm) (EUR 2774)
  13. Szabó Ilonka Street (HUF 1.007 million/sqm) (EUR 2733)
  14. Donáti Street (HUF 978,000/sqm) (EUR 2654)
  15. Gellérthegy Street (HUF 974,000/sqm) (EUR 2644)
  16. Logodi Street (HUF 967,000/sqm) (EUR 2625)
  17. Mikó Street (HUF 955,000/sqm) (EUR 2592)
  18. Pauler Street (HUF 949,000/sqm) (EUR 2576)
  19. Lovas Street (HUF 938,000/sqm) (EUR 2546)
  20. Toldy Ferenc Street (HUF 936,000/sqm) (EUR 2541)

The 20 cheapest streets in District 1 of Budapest

  1. Széna Square (730,000/sqm) (EUR 1982)
  2. Hegyalja Street (762,000/sqm) (EUR 2068)
  3. Vérmező Street (787,000/sqm) (EUR 2136)
  4. Márvány Street (794,000/sqm) (EUR 2155)
  5. Kosciuszkó Tádé Street (799,000/sqm) (EUR 2169)
  6. Battyhyány Street (823,000/sqm) (EUR 2234)
  7. Mészáros Street (824,000/sqm) (EUR 2237)
  8. Naphegy Square (831,000/sqm) (EUR 2256)
  9. Várfok Street (839,000/sqm) (EUR 2278)
  10. Avar Street (845,000/sqm) (EUR 2294)
  11. Csap Street (851,000/sqm) (EUR 2310)
  12. Krisztina Boulevard (852,000/sqm) (EUR 2313)
  13. Attila Street (853,000/sqm) (EUR 2316)
  14. Zsolt Street (854,000/sqm) (EUR 2319)
  15. Alsóhegy Street (873,000/sqm) (EUR 2369)
  16. Berényi Street (877,000/sqm) (EUR 2380)
  17. Derék Street (877,000/sqm) (EUR 2380)
  18. Hattyú Street (882,000/sqm) (EUR 2394)
  19. FÅ‘ Street (894,000/sqm) (EUR 2426)
  20. Csalogány Street (903,000/sqm) (EUR 2451)

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Hungarian people leave large cities, residential areas around Lake Balaton grow

Lake Balaton

Last autumn’s census has indicated a growing number of people moving outside large cities, Marcell Kovács, the census’s project manager, told a press conference on Tuesday.

While the population of large cities has shrunk and that of their surroundings has grown, residential areas in the north-western part of the country and around Lake Balaton have also grown, Kovács said.

The census has showed that the number and size of homes had also grown, with fewer people living in one unit, Kovács said, adding that 237 people were living in 100 homes last year, 11 fewer than in 2011. In 2022, the national housing stock consisted of 4.6 million units, 190,000 or 4.3 percentage points more than in 2011, he added.

Concerning the size of homes, Kovács said the average size was 82 square metres, 4 sqm bigger than in 2011, with three or more bedroom units making up 30 percent of the total stock. He also added that about 70 percent of all units had a bathroom and modern heating.

Over one third of the housing stock was built between 1960 and 1980, 14 percent after 2000, and 16 percent before the second world war. The oldest buildings as well as the newest ones are in Budapest, Kovács said. Most units are of brick and mortar, while pre-fab construction is the second in Budapest and in large cities, while in villages adobe brick construction has been the second preference, he added.

According to the census, most people heat their homes with piped gas, but the smaller the settlement, the more often we will find other heating fuels, mostly wood, Kovács said. The number of units with electric heating has grown considerably, to 10 percent in Budapest and 9 percent in the provinces, he said.

As for renewable energies, the census found that 68,000 households used heat pumps, 165,000 solar panels and 28,000 solar heat collectors, the latter two being more popular outside Budapest, Kovács said.

Fully 73 percent of all homes are linked to the internet, Kovács said.

Kovács also said that the number of seasonally inhabited units was 599,000, or 13 percent of all units, 2 percentage points higher than in 2011.