Budapest Property Market Surges: Second-Hand Flat Prices Reach Record Highs
The Hungarian real estate market has seen a remarkable surge in prices, especially in Budapest, where the average price of used apartments is nearing HUF 100 million (approximately EUR 250,000). This increase in prices is largely driven by a high demand that has outpaced the supply, causing significant price hikes across the country.
Budapest is leading the price increase, with the highest year-on-year rise of nearly 17% and a month-on-month increase of 4.4%. The average price per square meter for used apartments and houses in Budapest has reached HUF 1.24 million (EUR 3,100) as of early March. The X district has an average price of HUF 975,000 (EUR 2,430) per square meter, while outer districts offer prices ranging from HUF 767,000 to 922,000 (EUR 1,915 and 2,300) per square meter.
Nationally, the price increase is significant, with a year-on-year rise of 10.4% and a month-on-month increase of 2.4%. Regions such as Southern Transdanubia, Northern Great Plain, and Southern Great Plain have experienced higher price increases compared to the national average.
The surge in prices is attributed to a mismatch between supply and demand. Despite an increase in property listings, the demand has been consistently high, leading to a reduction in available properties and subsequent price hikes, especially in Budapest where demand exceeds supply significantly.
Outside of Budapest, cities like Pécs, Debrecen, Kecskemét, and Szeged remain significant due to their large supply of properties. On the other end of the spectrum, cities like Salgótarján, Békéscsaba, Kaposvár, Miskolc, and Szolnok offer more affordable options.
In conclusion, the Hungarian real estate market, particularly in Budapest, is currently experiencing rapid price growth due to high demand and limited supply. This trend presents challenges for buyers but also highlights the potential for investment in the sector. To read more news about the Hungarian real estate market, click HERE.
