According to recent analyses, Hungary has the most intense price increase in the real estate market within the EU. Numerically, second-hand housing prices have increased by 20% nationwide. Meanwhile, the new property market has experienced a price increase of 21% in Budapest and 26% in the countryside compared to the same period last year. In the last quarter of last year, the average price paid for a home in Hungary was 2.1 times higher than in 2015. Based on this,
As the latest data from Eurostat reveals, Hungary is followed by the Czech Republic in second place with a two-fold increase. The third place in terms of expensiveness is taken by Luxembourg, where properties for sale are 1.8 times more expensive than in 2015.
According to the latest domestic analysis, new and second-hand housing prices in Hungary rose by 19.5% in the last quarter of last year. Such an intense price increase could only be observed before the pandemic in the second quarter of 2019. Although for a long time the Hungarian capital was the center of increasing real estate prices, now the big cities outside Budapest are also significantly affected.
This can be explained by the fact that buyers have moved away from more expensive areas to cheaper ones. As a result, house prices have risen significantly in municipalities in the countryside, where properties are available at much lower prices than in the capital. In Budapest, the average price per m2 of new homes on the supply market in the first days of April was nearly EUR 2,908 (~ HUF 1.1 million).
This means an increase of 21% compared to a year earlier. In the case of second-hand apartments in the Hungarian capital, the increase was 17%, reaching EUR 2,308 (~ HUF 873,000). In the larger cities outside Budapest, the average price per m2 of new housing was EUR 1,946 (~HUF 736,000), which means a 26% annual increase.
Meanwhile, the average price of second-hand housing rose by 28% to EUR 1,380 (~HUF 522,000). According to an expert, the housing market is going through remarkable changes. This is indicated by the significant drop in demand for homes for sale this year. The reason behind this is the rising interest rate caused by inflation, thus the increase in the cost of home loans.
Even though prices per square metre in Budapest increased by almost EUR 264 (~HUF 100,000) in a year, it usually takes less than 3 months to sell a panel apartment in the Hungarian capital. Based on the first-quarter data, the highest turnover was recorded in the 3rd, 11th, 13th, and 14th districts.
The average price per square metre in the capital is EUR 1,760 (~HUF 666,000). However, more and more panels are offered for EUR 2,114-2,378 (~HUF 800-900,000), which means that the price of panel apartments is already the same as that of brick apartments
