Affordable Real Estate in CEE Capitals: A Closer Look at Budapest’s Market
Budapest Real Estate Among Most Affordable in Central and Eastern Europe
A recent comparison of the home markets in neighboring countries such as the Czech Republic, Poland, Romania, and Slovakia has revealed that Budapest’s real estate is among the most affordable in the region.
According to data from the Hungarian Central Statistical Office (KSH) and real estate website Ingatlan.com, the average price per square meter for used condominium apartments in Budapest is expected to surpass one million forints in the second half of 2024. Despite a gradual increase in housing prices, Budapest remains relatively cheap compared to other regional capitals.
Currently, the average price per square meter for homes in Budapest is a little over HUF 1 million (EUR 2438), which is significantly lower than prices in Prague, Warsaw, Bratislava, and Bucharest. For example, in Prague, homeowners pay around HUF 2.2 million (EUR 5364) per square meter, while in Bucharest, prices are as low as HUF 850,000 (EUR 2072) per square meter.
When considering the affordability of housing, it was found that Hungarians earning the average wage would need to work approximately 7.7 years to buy a 50-square-meter flat in Budapest. Comparatively, residents of Prague would need 11.7 years, Warsaw ten years, Bratislava less than nine years, and Bucharest 6.5 years to afford the same property.
In terms of rental prices, Budapest, Prague, and Bucharest are on par with renters needing to allocate around 45-46% of their average net monthly income for a 50-square-meter apartment. Warsaw stands out as the most expensive capital in terms of rent, with tenants dedicating 53% of their salary to housing costs. Meanwhile, in Bratislava, renters spend 57% of their average net monthly wage on rent.
Despite the relatively affordable housing market in Budapest, there are fewer affordable districts available due to the current pricing trends. This trend, along with the significant portion of income that goes towards housing costs in Central European capitals, has led to a high percentage of owner-occupied housing in the region.
Overall, the data highlights Budapest’s position as one of the most affordable real estate markets in Central and Eastern Europe, making it an attractive option for buyers and renters alike.
