Although we expected a fall in prices as a result of the pandemic, the statistics still show an increase. In the current issue of the OTP Residential Real Estate Value Map, based on the 2020 data, it was examined how prices changed and what the current price levels are.
As a result of the pandemic situation in general and the changing home preferences, the dynamics of urban development seem to be changing – read the analysis of OTP Mortgage Bank’s latest Residential Real Estate Value Map, which includes NAV 2020 transaction data.
The support elements of the Home Creation Program introduced this year have brought spectacular effervescence, significantly mitigating the negative economic effects of the pandemic, presumably helping to avoid the recession expected even a year ago.
With the introduction of home creation subsidies at the beginning of the year, a large number of customers appeared in Budapest and its agglomeration who were waiting for their turn in the market. In January, emigration from the city centre to the agglomeration areas intensified, and the demand for premium real estate on the Buda side increased, in addition to housing estates.
The national house price level in 2020, compared to the previous year, increased by about 9.1 per cent, half as much as the year before, according to NAV’s (not yet complete) real estate turnover data.
However, the cumulative annual rise in prices was the result of price changes in positive and negative directions. In Budapest, the rate of price increase was only 3 per cent last year, according to Dávid Valkó, a senior analyst at OTP Mortgage Bank.
Mainly due to the significant price increase in the settlements on the shores of Lake Balaton, in 2020, Somogy jumped to first place in the price list of the counties. The cheapest is traditionally Nógrád County.
As with price changes, of course, the relationship between counties and their county capitals is strong at the price level, except in Somogy, where the properties near the water, on the shores of Lake Balaton, are on average much more expensive.
The average price of residential properties per district sold in 2020 exceeds the level of 500 thousand for the average price of 23 districts. In addition to the 23 most expensive districts in Budapest, Balatonfüred, Fonyód, Siófok, Budakeszi, and Dunakeszi are also in the most expensive category.
The national average price was 436 thousand HUF/m2 last year, while the rural average, excluding the capital, was 303 thousand HUF/m2.
The average price of two districts remains below HUF 50,000 / m2 and that of another 46 districts below HUF 120,000 / m2. Most districts in this category are traditionally from northern Hungary.
After a minimal price increase of only 1.2 per cent in 2020 compared to previous years, the 5th district of the capital still leads the price ranking in Budapest by 991 thousand HUF / m2.
The 25 postcode areas where the average price exceeded HUF 800,000 / m2 last year are the downtown districts of Pest (for example, District V) and the more expensive areas of the Buda side. The most expensive district is traditionally the Buda Castle: last year, the average price per square metre exceeded 1.4 million HUF / m2.
With an average of less than 500,000 HUF / m2, there are 27 districts. Among them, there is only one on the Buda side.
At present, the development dynamics of (larger) city centres and agglomerations are changing. Regardless of the current processes, in the long run, properties that are located in a suburban location but have a good infrastructure and are close to the workplace can prove to be a really good choice.
“Our short-term expectations can be summed up as follows: the housing market is likely to escape the recession, even though just a year ago, everything seemed to be all set for a clear downturn,”Dávid Valkó emphasised.