According to recent analyses, Hungary has one of the most intense price increases in the real estate market within the EU. Numerically, second-hand housing prices have increased by 20% nationwide, while the new property market has experienced a price increase of 21% in Budapest and 26% in the countryside, compared to the same period last year.
24 reports that approximately 13% fewer new apartments are being built in Budapest than just a year ago, while the price level has increased about one-fifth.
On average, the price for a square metre of new apartment has surpassed 1.3 million forints or approximately €3,400, but the range of prices can be wildly different from one another and, interestingly, the previously expensive district V is no longer among the most expensive areas in the capital.
The experts at Otthon Centrum compiled the following data from new apartments uploaded to their online platform for sale in the first quarter. They have found that there are currently 361 new apartment investments going on, which account for a total of around 27,400 new apartments being built.
The number of ongoing projects has decreased by 15.7%, while the number of available apartments has gone down by 13.1% compared to last year. However, 32% of total apartments, or around 8,700, are currently only in the planning stage, which is a number 2% higher than previous data.
Gábor Soóki-Tóth, the leading analyst at the real estate company, told 24 that, while the price of announced projects has increased further, the difference can be shocking between two districts in terms of new apartment prices.
It is possible that the price of apartments per square metre costs between 768,000 forints, or over €2,000, and 2,350,000 forints, which is the approximate equivalent of over €6,180.
Central Home Budapest has compiled a collection of some of the best-selling and most expensive streets in Budapest on the real estate market, which Haszon published.
While, overall, district V is not as sought after as it previously was, there are still streets where the demand is higher than the supply. Evergreen favourites include Andrássy út, Szabadság tér, the Rakpart, and the streets near the Parliament.
Ben-Ezra Orran, an expert at Central Home, has told Haszon that apartments on Andrássy út, Falk Miksa utca, Bem and Széchenyi rakpart (banks), as well as the surrounding Váci utca, are sought-after areas where prices have risen to one-and-a-half to two million forints (€3,900-5,200).
Ben-Ezra Orran said that, in recent years, Király utca and its area have been among the most sought-after areas in the Hungarian capital thanks to AirBnB and the closeness of the party district. However, the halting of tourism caused by the pandemic has caused a drastic decrease in demand that has not since sprung back entirely.
Andrássy út is a high-class area of district VI, and apartments may cost between one-and-a-half to two million forints (€3,900-5,200), but Király utca, Székely Mihály utca, as well as Zichy Jenő utca, are also great targets for AirBnBs and apartments and cost around one million forints (€2,600) or a little over.
In district VII, the best investment targets are Király utca (it is the border of districts VI and VII), Dob utca, and Klauzál tér where prices go between 900,000 to 1,200,000 forints (€2,300-3,100).
Haszon writes that, according to experts, no observable change has happened in the real estate market here in the past decade; Újlipótváros continues to be a highly popular area.
Many prefer the vicinity of Pozsonyi út and Szent István park where prices for renovated apartments go between one and one-and-a-half million forints (€2,600-3,900).
Source: haszon.hu, 24.hu