Budapest to become empty? – the reasons behind population decline

Settlements in the agglomeration of Budapest are becoming more and more popular among Hungarians, while the population of the capital has been decreasing for five years. What is the reason behind and which are the most popular settlements in the agglomeration of the capital?

Since 2016, the population of the Hungarian capital has been steadily declining. Last year, Budapest’s population decreased by almost 13,000, as well as fewer people lived in the county seats in January 2021 than a year ago.

The pandemic can partly explain this; as a result of which, the demand in the real estate market has significantly changed. As the Hungarian news portal Index reports, the urban population tried to “escape” to the countryside and Hungarians were very active in searching for properties in the agglomeration of larger cities, resulting in remarkable changes in the size of the population of some Hungarian settlements. Another reason might be the completion of house constructions; several families could move into their new homes built in the agglomeration of large cities.

In 2020, the most significant growth in the population was measured in Rajka,

located on the Slovak-Hungarian border, where the population has increased by almost 60% in one year, reaching more than 6,000 people. In addition, a remarkable increase could be observed in the population of Érd, Gyömrő, Nagytarcsa, Délegyháza, Veresegyház, Dunaharaszti and Szigetszentmiklós, with an annual growth of 300-600 people until the beginning of this year.

Changes in the population size also affect property prices. In Budapest, property prices started to increase in 2014, which also intensified the migration of Hungarians from the capital to the agglomeration. However, the rapid price increase in the real estate market of the Hungarian capital almost stopped in 2020 by the emergence of the pandemic. Similarly, a slower pace could be experienced in other big cities while the increasing population in the agglomeration has generated remarkable growth in the property prices of these areas.

The highest property price growth in the agglomeration of Budapest was measured in Érd,

where the average prices per square meter in the supply market increased by 23% to EUR 1590. Rajka follows with an annual increase of 20% (EUR 1400/m2) and Gyömrő with a yearly growth of 14% (EUR 1555/m2).

According to the expert of ingatlan.com, the Hungarian real estate market is expected to recover this year and presumably will close a much better year than 2020.

Read alsoProperty prices in Budapest are expected to rise this Summer

Source: index.hu

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1 Comment

Nathaniel : says:

29/05/2021 at 12:04

Vital Statistic of – FACTUALITY – missed in this report, not forgetting, the devastation to the entire Economy of Hungary – this on-going novel coronavirus continues to inflict, is the Foreign Governmental Approved – purchase and investment – into the Hungarian Property Market.
Price in Property and Warehousing – rises factually witnessed – driven to the level over the years as example 2014 through to February 2021 – created by Foreign Investment into our Property and Rental Markets.
The dominating (3) three players – Country’s – who “catapulted” our property markets to the “celestial” levels and beyond – through their INVESTMENTS – in this order :
(1) – China.
(2) – Vietnamese.
(3) – Germany.
We reside our house is in District V – and centering on one of the (3) three country’s – China has dominated the change of titled ownership properties in our District.
Interestingly – they do not “buy up” to live in their newly acquired property’s, but build their portfolios on property’s for Rental Income earnings, and if they have it, taxational rules and regulations relating to foreign investment and property ownership – the Chinese way.
Do they manipulate the property market – rental market ?
No – would not say they manipulate by total domination of their Investments but they do “drive” and are the Major players, in particular Rental Property’s – and they have “unfinished” business with their thick and healthy cheque books – meeting complete encouragement and support from the present Hungarian Government.
Does worry me -those compulsory (2) two hours per week classes that need attending compulsory – by our present Hungarian Government – in their “skills” and “ability” – of speaking and writing of Mandarin. /// – ha ha.
Hugh announcements still to be factually tabled and made public transparent to the citizens of the property and real estate picture in Hungary – that will make fascinating and scrutinize /dissecting reading.
The 21st century – Silk Road – the meeting of the East and the West is it Budapest, Hungary ?