Although home prices in Hungary have risen at the fastest clip in Europe, it still takes Hungarians only a little more than seven yearsʼ salary to buy a new home of 70 square meters, the European Property Index 2019 survey by consultancy Deloitte shows.
Home prices in Hungary rose by about 35% in 2015-2018, well over the 5% average increase for other selected countries in Europe, said Gábor Kohári, a senior manager at Deloitteʼs Budapest office cited by state news agency MTI.
The survey shows that Hungarians need to save all of their earnings for a period of 7.1 years to afford to buy a 70 sqm home. In Poland, the corresponding period is 7.5 years, in Latvia it is 10.1 years, and in the Czech Republic it is 11.2 years.
The Deloitte report shows the ratio of outstanding home loans to disposable household income stood at just 20.0% in Hungary in 2018, compared to 33.8% in Poland, and 45.0% in the Czech Republic.
The average home price in Hungary was EUR 1,323 per square meter last year, still under the EUR 1,370 per square meter price in Poland, and the EUR 2,525 price in the Czech Republic.
Home prices in Budapest exceeded the national average by 140%, while prices of homes in Debrecen, the countryʼs second-biggest city, were just 84% of the average.