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Transactions in Districts V, VI and VII averaged HUF 1.403 million per square meter, down from HUF 1.447 million a year earlier. Elsewhere in the capital, Duna House recorded annual price increases of 10% in Pest and 4% in Buda.
The slowdown in central Budapest has developed over several months. In May, average prices per square meter were still 27% above their year-earlier level, while the second quarter as a whole recorded an 18% increase. By July, the annual difference had effectively disappeared, followed by August’s decline.
“Central Budapest was long one of the capital’s fastest-appreciating submarkets, but that price growth has now effectively evaporated within a few months. This does not yet mean a general decline in prices, but it is clear that previously high prices are becoming increasingly difficult to achieve in the most expensive areas,” said Péter Szegő, senior analyst at Duna House.
Price growth continued in less expensive markets. Average prices per square meter for resale brick-built apartments rose 23% year-on-year in western Hungary and 15% in eastern Hungary in August. Resale apartments in prefabricated panel buildings in eastern Hungary recorded a 25% increase, further narrowing the gap between previously cheaper and more expensive markets.
Within Budapest’s resale brick-built apartment market, Buda remained the most expensive area, averaging HUF 1.598 million per square meter. Central Budapest followed at HUF 1.403 million, while Pest averaged HUF 1.095 million.
Buyers negotiated larger discounts than a year earlier across all three submarkets, with final negotiated price reductions averaging around 4%.
Properties also took longer to sell. Central Budapest resale brick-built apartments spent an average of 88 days on the market in August, compared with 81 days a year earlier. Average selling times increased from 79 to 100 days in Pest and from 85 to 92 days in Buda.
Duna House cautioned that monthly average prices are influenced by the mix of properties sold, meaning August’s figure alone does not demonstrate a general decline in central Budapest property values. However, successive monthly readings indicate that the earlier rapid price growth has stalled.
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