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.