The long-awaited turnaround: now is the time to buy property in Hungary
The housing market is experiencing the phenomenon of a price rise stop, said László Balogh, senior analyst at ingatlan.com. The only time a similar halt was seen was in the second quarter of 2020, when the coronavirus epidemic emerged. This is good news for those who plan to buy property in Hungary – a sign to do so in the near future.
The average price per square metre of apartments and houses in Budapest was HUF 959,000 (EUR 2,313) and HUF 794,000 (EUR 1,915) respectively in mid-October, representing a year-on-year increase of 20 and 19 percent, but stagnation compared to the beginning of September. In other words, the price increase has stopped, according to an analysis by ingatlan.com.
The price freeze is also due to the opening of the supply-demand gap in recent months, napi.hu reports. In other words, supply is constantly increasing, while interest in properties for sale is decreasing. The coming months will determine whether the stagnation following the rise in prices for some properties for sale will turn into a fall in house prices.
A visible turnaround
A clear “message” has been sent by homeowners offering their property for sale in Budapest, according to the latest data, said László Balogh, chief economist at ingatlan.com. In mid-October, the price per square metre for apartments in Budapest was HUF 959,000, while the price per square metre for houses was HUF 794,000. This compares to HUF 800,000 (EUR 1,929) and HUF 666,000 (EUR 1,606) a year earlier. In other words, year-on-year price increases of 20 and 19 percent, which is equivalent to a monthly average price increase of 1.6 per cent.
The turnaround is shown by the fact that prices have remained unchanged since the beginning of September, meaning that for six weeks second-hand property prices have remained essentially unchanged. “The halt in price rises indicates that uncertainty and caution have appeared on the part of buyers and sellers have started to adapt to this,” the expert commented.
- Read also: Weak forint: euroisation to come in Hungary
More subdued months ahead
It is still too early to say whether the stagnation will last, or whether sellers will be forced to cut prices, or whether prices in the capital will get a new boost once the economic uncertainties have been resolved, napi.hu writes. According to the expert, the changes in Budapest are worth paying attention to because the trends in the capital are typically reflected later in the national picture.
In any case, according to the expert of ingatlan.com, purchasing power will be more subdued, partly because the energy crisis in Europe and rising interest rates due to inflation are having a negative impact on demand. Buyer hesitancy in the second-hand housing market could further reduce the number of sales in Budapest and nationally.
Read alsoFuel price at historic high in Hungary, MOL introduces 36% increase
Source: napi.hu, ingatlan.com
please make a donation here
Hot news
What happened today in Hungary? — 30 November, 2023
Minister: AI can be breakout point for Hungarian economy
Transport megaprojects to start in Budapest next year
Hungarian FM wants to preserve stable and fair cooperation with Russia
Leading foreign newspapers rave about Budapest Christmas markets
Meteorological service issues freezing rain alert for Budapest and northern regions
5 Comments
HUF 959,000 per square meter is absolutely unacceptable for a country that doesn’t even have a future. There is a possibility of EU sanctions, a war going on which might come to Hungary at the end, population dropping every day and etc… Way overpriced, I can buy a property in Spain at the same price, why would I choose Hungary instead?
Carnage – on an accelerating downward trending Real Estate/Property Market in Hungary.
SELLERS “flooding the market” – buyers STILL carefully, as they SHOULD – evaluating what the FUTURE, by making lifetime investment into PROPERTY – the risk associated with it.
Hungary – the Finacial & Economic picture it continues to EXHIBIT – DISPLAY to us living in it – the ZENITH of its cataclysmic descend and EFFECTS across the broad spectrum of Hungarian life, we are STILL distanced from witnessing its FULL impact on our country – our personal quality of life and the FUTURE of Hungary.
Buyers – act with extreme “Due DILIGENCE” – as through driven by the state of the Hungarian Economy, prices being asked by VENDORS are still on the High side, as to where the BOTTOM of the Real Estate/Property Markets will possible “base out” in Hungary.
Hungary – the FUTURE of its European Union Membership – massive destabilization economic & financial factor – over Hungary.
No membership of the European Union for Hungary – as is PRESENT no FUNDING – the outlook GRIM.
Russia & China – the closest friends Hungary associate with – PERILOUS choice and path set upon to DEEPEN – never forgetting that these TWO countries, that likened to the Orban style of Government – are RULED & Governed conducted under DICTATORS.
We BUILD on in Hungary – new apartments & flats, new Hotels and “other” places of accommodation, new houses, new storage & warehousing facilities.
INTERFACED into the NEW building projects – we have LARGE re-furbishment projects – upgrades or modernization projects in Apartments, Flats, Housing, Hotels and Warehousing & Storage.
The NEGATIVES that SMOTHER the Real Estate & Property Markets in Budapest, Hungary – presently and going FORWARD – sustainability of price level nil.
Interest Rates, discussed inside the market, could be 18% to 20% – by Christmas 2022.
Foreign Investment – Investors – we know the COLLAPSE of the Forint to the Euro, which is still distanced from its DEVALUATION “bottom” – this WILL not be the SAVIOUR of the Real Estate/Property Markets in Budapest, Hungary.
What will be the end result?
Sadly – it will not be PLEASANT.
Dear Natalia & Co,
Y GÖT a point!
Which price / 2M are acceptable, by your p.o.w?
I’m living in Sweden, where they pay 28EUR/liter for GASOLINE!
With respect for the FUTURE
Dear Hungary hating outlanders,
You’re right, Hungary is overpriced and way not worth it. Now please sod off, and don’t come to Hungary, ever. Please be kind and spread the word to others too.
“Someone I know wanted to invest in Budapest by buying a block of apartments in Naphegy and demolish them, and then build a new one to reflect the greater area’s c. 18th Century history, but when even pizzas cost 25 p.c. more than in Naples, they decided that Naples might be a cheaper place to live. 😉 😀”
– ‘O sole mio (DNH 21st October)