OTP Bank published its latest Residential Property Value Map, which includes the average prices of districts, counties and districts for the whole of 2021. Read below for further information.
The map shows price changes over the year and the development of the housing market, reports Portfolio. Based on the latest data, the residential property market saw a 12.5% increase in prices in 2021, with a one-third increase in turnover nationwide. In addition to the numerous and deepening risks identified at the beginning of the year, a new crisis has emerged with the war between Russia and Ukraine. The impact of said war could lead to a drop in turnover this year, while there is a chance that real price levels could still increase overall in 2022. However, a trend reversal is increasingly likely, analysis says.
Looking at the figures, it is important to stress that they refer to the year 2021. This is due to the delay in the provision of data by NAV. However, since last year, in addition to the international environment, there have been major changes in the domestic economy. The war and rising inflation have an impact on house prices. Therefore, if we were to draw maps from current data, we would certainly see higher prices in the future. Nevertheless, the figures on the map and in the graphs are a good starting point. They help make comparisons between different areas of the country.
After a slight slowdown in the previous year, national house prices rose again at double-digit rates in 2021, by roughly 12.5%. According to the NAV’s real estate data, these are not yet complete. All types of municipalities saw price increases. The rate of price growth is moderate, it fluctuates between 9% and 10% in villages and smaller towns. The rate of price growth accelerated to 6% and 14% respectively in Budapest and the cities with county status compared to the previous year.
“According to preliminary data, real estate sales increased by one third in 2021. Approaching 170,000 in number, they broke a record of almost a decade and a half last year.” – said Dávid Valkó, senior real estate analyst at OTP.
After a decrease in the previous year, and a 6.1% increase in 2021 the capital’s 5th district still leads the Budapest price ranking. It is now crossing the million mark for the first time, with 1.052 million HUF (2,702 EUR)/m2.
In comparison, the average price of the second most expensive district I is 11% lower at 934,000 HUF (2,399 EUR)/m2. At the other extreme, just below the 500,000 HUF (1,284 EUR) average, are districts XXI, XX and XXIII. District XXIII has moved up from the bottom of the ranking for the first time since 2014, thanks to the start of sales and construction of several major housing projects in the last two years.
Somogy county dropped from the top to the middle of the table last year in terms of price increases. The increased demand in settlements along Lake Balaton is evident.
While the county crossed the 400,000 HUF (1,027 EUR) mark for the first time in 2020, it will be able to boast an average price of 520,000 HUF (1,336 EUR)/m2 in 2021. Pest County is only slightly below the half-a-million mark. Even Hajdú-Bihar and Győr-Moson-Sopron have average prices above 400,000 HUF/m2. The cheapest is traditionally Nógrád county, with an average of 138,000 HUF (354 EUR)/m2 last year, the only county below the 200,000 limits.
Source: otp.hu, portfolio.hu