Property prices doubled in the past two years in most of the settlements around Lake Balaton
Property prices have doubled in the past two years in most of the settlements around Lake Balaton. The northern coastal area of Tihany proves to be the most expensive.
Soaring prices around the lake
Property prices around Lake Balaton have doubled between 2020 and 2022.
The average price of a holiday home on the northern and southern shores is between HUF 90,000,000 and 110,000,000 (EUR 227,541.10 – 278,105.79).
The average price of a holiday home is HUF 1,000,000 (EUR 2528.23) per square meter, 24.hu reports. On the southern shore, in Somogy County, the average price per square metre was HUF 570,000 (EUR 1,444,953.51) in May 2020. In 2021, it cost HUF 690,000 (EUR 1741.36), while in 2022, the average price jumped to HUF 1,000,000 (EUR 2523.71). On the northern coast, the average price is slightly lower than in the southern settlements. However, the prices largely vary between municipalities.
In the luxury category, it is not uncommon to see properties listing for HUF 1,000,000,000 (EUR 2,531,043.00).
Waterfront houses are more popular on the southern coast, while the northern region has been booming with buyers who seek panoramic views. “The luxury market operates with higher prices; in this category, the multiplier of 150 percent has been the standard rate in the past two years,” said Péter Urbán, head of Engel & Völkers Hungary.
Urbán added that those who want to own property around Lake Balaton should expect to spend at least HUF 150,000,000 (EUR 378,556.53) on average. However, in some areas, purchase prices even jump to HUF 1,000,000,000 (EUR 2,531,043.00).
Luxury properties at Lake Balaton
Different areas operate with different price levels.
Tihany is the most expensive town on Lake Balaton.
Properties in this scenic waterfront town sell for an average of HUF 1,800,000 (EUR 4564.65) per square metre. Holidays homes in Vászoly and Paloznak are also hot commodities. Luxury properties are listed at HUF 360,000,000 (EUR 912,929.40) on average in the former town, while in the latter, prices start at HUF 329,000,000 (EUR 834,316.04).
The dramatic price increase results in falling demand for properties.
The reasons behind that are not only the ever-growing inflation rate but also the credit crunch and the Russia-Ukraine war, which all have a direct effect on purchasing trends. The northern and southern shores of Lake Balaton and around Lake Venice are also experiencing significant price increases, napi.hu reports.
Péter Urbán believes that those who had money bought lands at the beginning of the pandemic. Property prices are expected to peak now, after which experts project a price drop.
Read alsoThese are the most expensive properties in Hungary – PHOTOS
Source: napi.hu, 24.hu