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Hungarians expect home prices to rise 23% in next 3 years

According to a survey by K&H, Hungarians expect homes to become about 23% more expensive on average in the next three years, with only 12% of the surveyed believing that prices will fall.

K&Hʼs "Certain Future" survey gauged the expectations of Hungarians between the age of 30 and 59 years regarding their perceived home price increases in the last three years, and predictions for the upcoming three year period.

In the last three years, the average perceived home price increase was 47%. About 32% of the respondents believe that prices went up by 25-49%, while some 22% said perceive a hike of 50-74%. Every 10th respondent believes that prices have doubled.

The perceived increase in Budapest was 56%, was well above the countrywide average. This is in line with data by the Central Statistical Office (KSH). KSH said that home prices in Budapest were on average 54% higher in Q3 2019 (HUF 32.7 million on average) than in Q3 2016.

Regarding the future, most respondents expect prices to keep increasing. Most believe that homes will be 23% more expensive three years from now. Some 20% of the surveyed predict an increase of 10% or less. About 22% say that the rise will be between 11-24%, while 7% predict that homes will be more than 50% more expensive. Only 5% said that prices will stagnate, and 12% expect prices to fall.