More and more people move every year for better job opportunities or services in Hungary. The big cities of Pest county and Transdanubia are the most popular destinations for this purpose. There has been a constant migration in the country for a long time, though it may change due to the government’s family policy. Are the real estate market and the construction industry able to keep up with the growing demands? The analysis of OTP Ingatlanpont investigates this issue.
According to 24.hu, Pest county as a separate region of the country (since 2018) shows the biggest migration difference with 13.2 per mille. This number is the proportion of emigrants and immigrants for one thousand people.
Based on this data, the number of incoming and temporary inhabitants of Pest county has grown to a great extent, due to two simultaneous processes. According to data from 2018,
people on the northern part of the Alföld (Great Hungarian Plain) and in Northern Hungary tend to move the most, and they mainly choose Budapest and its agglomeration as their new home.
One of the main reasons for choosing the agglomeration is the lower real estate prices compared to Budapest, and the other is that popular jobs are relatively close and easy to reach from there as well. Due to this process, the unofficial zones of agglomeration of the capital are extending – the main traffic roads, e.g. motorway M3, have already gone past the county border, reaching the town of Hatvan. Thanks to the Family Housing Support Program of the government, there are supported settlements in the area beneficiary for real estate purchase.
The migration scale of Budapest has been negative for the third year now. The majority of its emigrants move to the agglomeration. The population growth of Fejér county can also be observed. Only the average real estate price in the five most expensive settlements of Pest county is approaching Budapest prices, so there is a wide range of choices of where to move in Pest county for the price of a Budapest real estate.
According to Dávid Valkó, analyser of OTP Ingatlanpont, Pest county is not cheap at all compared to other counties:
“Those who move to Pest county from the eastern part of the country experience that a real estate with the same parameters costs significantly more than in their previous area of residency. In the Eastern Hungarian settlements, real estate sales have not been so frequent, but by introducing the CSOK in villages, this tendency can change in the future. The emigrants can benefit from the increased demands because they will be able to sell their real estate for higher prices,”
added analyser Valkó.
Similar tendencies can be observed in the Noth-Western part of Hungary, where smaller settlements around bigger towns – like Székesfehérvár, Veszprém, Tatabánya, Győr, etc. – are particularly popular. These towns attract employees with their families from all around the country. So, bigger towns’ real estate market is going strong as well because of their own agglomerations. The prices have also been beneficial there – from the price of one real estate in the capital, you could purchase two or three, e.g. in Tatabánya.
“In the past few years, flats were extremely popular on the market, but thanks to the village CSOK and loans for baby waiting, they can be replaced by family houses in the surrounding small settlements on the real estate market,”
said Szabolcs Goreczki, regional leader of OTP Ingatlanpont in North-Western Hungary. He says that in the bigger towns of the mentioned regions, the rise of real estate prices has stopped and stabilised.
You can read about the real estate purchases by foreigners here.