There have been increasing prices and huge local differences in the real estate sector in Hungary according to a report published by two property websites. They examined the average price of properties listed for sale nationally between 2014 and 2015. The price growth may seem robust, this trend is not general and the national picture remains mixed.
Two sides of the same coin
The report explains that the real estate market boom of last year having added to the upward pressure on prices. This tendency is not valid everywhere. Infrastructural and social disorders have also made the county fall into two main categories:
- Prices of apartments and houses on sale have not grown in certain counties but have even declined by 21%.
- There are also certain areas where the average offer prices have heavily exceeded the rate of 2014. In the capital, for instance, the average price jumped from 323.000 HUF/sqm to 403.000 HUF/sqm between 2014 and 2015.
Price growth in districts of Budapest
- Downtown districts 5, 1, 6 have witnessed the sharpest increase in property prices shooting up by 35% between 2014 and 2015.
- The tendency is more realistic in the popular districts 2, 12, 13, 11, 3 and 7 due to the more varied supply.
- In focal districts 9, 14, 8, 16 and 4 the price increase has been moderate (20%).
- In outer districts 22, 15, 19, 18, 10, 17, 21, 20, 23 prices have increased only by 8% since 2014.
What will the future bring?
- The average prices may see a further rise in popular areas.
- Prices may decrease in less preferred areas.
- Sellers can have difficulty selling houses with bigger floor space, which can lead to lower prices.
- Growing number of new projects with increasing prices suitable for families entitled to receive Government Support Family Benefit family (CSOK) may lead to higher average selling prices in certain regions.
- Changes in the quality of the building stocks may also affect the average prices.
(Source: http://m.portfolio.hu/ingatlan/lakas/ezeket_a_pesti_lakasokat_aranyaron_merik.228063.html)
