Residential real estate prices increased by 9.9 percent in October, while in September the annual price increase was still close to 7 percent. Within this, as a result of the recent price increase, at the beginning of November, the average square meter of apartments for sale in Budapest came close to a new level, almost reaching 1.1 million forints. A total of eleven districts – including I., II., III., V., VI., VII., XI. and the XIII. – it is already at a higher average price, according to the housing price index of ingtalan.com.
Based on the latest data, the capital’s housing market is booming, while prices in the Budapest agglomeration fell by 0.1 percent on a monthly basis, and the annual index slowed to 5.8 percent from 6 percent a month earlier. The increase in price in Budapest is also noteworthy because a year ago the average square meter of apartments in the capital was still under HUF 1 million. In the case of newly built apartments and houses in the capital, the average price per square meter exceeds HUF 1.35 million, while used ones cost HUF 1.08 million.
The owners who want to sell their apartments have apparently already priced in the expected rush of investors next year, which is dangerous because most of the demand with higher solvency will not arrive on the housing market until 2025. If the owners who are thinking of entering the market and moving quickly cannot sell their apartment in time, they can fall between two chairs under the bench. They can sell their property at a higher price next year, but they also have to pay more for their next home
– highlighted László Balogh, the leading economic expert of ingtalan.com.
In terms of differences within the country, the annual increase in prices exceeded 11 percent in both the North Great Plain and South Great Plain regions, which means a faster rise than the national and capital city averages. This can be explained primarily by the increase in demand for residential properties in Debrecen and Szeged.
Looking at the housing market of the county seats, it can be seen that the average price per square meter exceeds HUF 600,000 in already ten large cities.
Debrecen is in the lead with HUF 853,000 per square meter. Győr, Veszprém, Székesfehérvár and Szeged are essentially tied for second place with an average price of HUF 790-804 thousand. The average of these cities also exceeds that of certain districts of Budapest. Prices are even lower in Pécs at HUF 689,000, while Eger, Szombathely and Kecskemét are characterized by a price per square meter of around 650,000.
Source: www.economx.hu
