This is how many years of income you have to spare to afford an apartment in Budapest
Have you ever wondered how much you have to work to own an apartment in Budapest? It was all over the news last year that real estate prices in Budapest seemed never to stop increasing. A recent survey conducted by Ingatlan.com calculated exactly how many years an average person has to work to be able to afford a 50m2 apartment in the Hungarian capital. Can you guess?
Both salaries and real estate prices have been increasing in the East-Central-European region, Forbes reports. Ingatlan.com looked at income and real estate price statistics from 2018 and calculated how many years of work it takes for an average person to be able to buy a 50m2 apartment in the Central European capitals, namely: Budapest, Bucharest, Prague, Bratislava and Warsaw.
In the last quarter of 2018, the average price of m2 in Budapest was 1,700 Euros (540,000 Forints). If we combine the average price of m2 with the average income of the above mentioned Central European countries’ population, the following can be concluded:
In Hungary, people need to spare their entire salary for 7.5 years in order to afford a 50m2 apartment in Budapest. The number is exactly the same in Bucharest and Warsaw too. However, Prague and Bratislava have it worse; the Czechs and the Slovakians need to save more than 8 years of salary to afford a 50m2 apartment in their capital cities.
Did you guess right?
In 2018, real estate prices in all Central European countries were much higher on average than in 2015: by 21% in Slovakia, 19% in Romania and 32% in the Czech Republic.
According to statistics, the average income of the inhabitants also increased. Real estate prices also tend to be much higher in the capitals than the average prices of the whole country. Based on data, it can be stated that the same processes could be observed in the real estate market in all of the above mentioned Central European countries. In other words, real estate prices went through the same changes as in Hungary.
There is some good news: prices are about to decrease in the near future. As Daily News Hungary also reported earlier, it would be impossible to keep up with the ever increasing real estate prices without the increase of the average income, and it is more likely that real estate prices will decrease.
Featured image: Daily News Hungary
Source: www.forbes.hu; ww.ingatlan.com