Dramatic Increase in Property Prices Uncovered by European Parliament in Hungary
The European Parliament recently shared alarming data regarding the surge in real estate prices in Hungary and the European Union. The findings revealed that the rate of increase in Hungary far exceeded that of the EU, with an average of 173% compared to 48%. Unfortunately, experts are predicting that the upward trend in property prices will continue throughout the year in Hungary.
According to the European Parliament, between 2015 and 2023, house prices in the EU experienced an average increase of 48%, with Hungary leading the pack at 173% and Finland trailing behind at just 5%. The steepest year-on-year rise in Hungary was observed between 2021 and 2022 at 46%, followed by an additional 20% increase between 2022 and 2023. This significant inflation has had detrimental effects on Hungary’s economy and society.
Factors contributing to the surge in property prices include higher building costs, mortgage rates, a decrease in construction activity limiting supply, and an increase in property purchases for investment purposes.
In addition to rising property prices, the average age at which individuals leave their parental homes was also highlighted. While the EU average stands at 26.3 years, Hungary’s average is slightly higher at 27.1 years.
Foreign investment in Hungarian real estate, particularly in Budapest and the Western counties, was also noted. Analysis from Otthon Centrum reveals that Chinese buyers predominantly focus on Budapest’s downtown area, while Germans favor Somogy County and the Western regions of Hungary. Foreigners tend to pay more for properties, with an average price of HUF 51.1 million (EUR 123,000) compared to Hungarian buyers.
Experts suggest that property prices in Hungary will continue to rise in 2025 due to government initiatives aimed at stimulating the real estate market. To learn more about these measures, click here.
Overall, the real estate market in Hungary is experiencing a boom, with significant increases in property prices and foreign investment. As the year progresses, it will be interesting to see how these trends evolve and impact the country’s economy and society.
