Balaton real estate price growth slows
The real estate price increase on the shore of Lake Balaton has slightly slowed down, according to a survey by Otthon Centrum.
Compared to the first half of last year, prices have risen by 14% this year, which is substantial, but the pace of the increase has roughly halved compared to the average price growth seen in previous years - there have been years when price increases have exceeded 20-30% in a single year.
The most expensive areas are still the larger settlements on the southern shore of Lake Balaton, where prices per square meter are often between HUF 600,000-700,000. On the northern shore, the highly popular town of Balatonfüred and its surroundings are also similarly priced.
Gábor Soóki-Tóth, head of analysis at Otthon Centrum, said that location continues to have a decisive influence on prices.
"The location of a property near the waterfront and its location in relation to the center of the municipality is a determining factor. The distance from the lake is a decisive factor in pricing, and the difference is noticeable after about 500 meters," said the expert, summarising the results of a survey of properties sold at Otthon Centrum's own base.
There were also significant differences between the municipalities. The western basin of the lake is characterized by much more moderate prices, with prices of well under half a million forints per square meter prevailing, for example, in Balatonmáriafürdő, holiday homes were sold at an average price of 390,000 forints per sqm.
The trend is similar on the northern shore, where the eastern basin is the most expensive, and prices fall as you move away from the capital. The difference is that the average price of a property here is a bit cheaper than in the opposite towns on the south coast, and the price difference within a locality is not as striking.
The popularity of the Balaton Highland municipalities, which are intrinsically linked to the northern shore, remains unbroken, and although prices are typically more moderate than in the Balaton shore municipalities, this is no longer true everywhere. While Alsópáhok or Várvölgy, near Keszthely, are characterized by prices of around HUF 250,000 per sqm, Cserszegtomaj is already comparable to the lakeside settlements of the western basin (HUF 400,000-500,000 per sqm).
The market for new-build lakefront housing has also been booming recently, with Siófok's leadership in this segment undisputed.
According to a May survey by Otthon Centrum, around 950 apartments are being built in 21 projects in the town. The average price per sqm of new apartments is HUF 1.78 million.
At the same time, Gábor Soóki-Tóth noted that it is mainly the luxury projects on the lakefront of Liszt Ferenc and Deák Ferenc promenades that are driving up prices. Away from the lake, there are also projects with a per sqm price of under a million forints.
Balatonlelle came second with 280 apartments in eight projects, while in Keszthely there are 230 apartments in six projects. Keszthely is the most expensive, with 1.61 million HUF per sqm, while the average per sqm price of new apartments in Balatonlelle is 1.38 million HUF. However, it is not in these settlements but in Balatonakarattya where the highest prices are offered for new apartments, at an average of HUF 3 million per sqm.
"After aggregating the data, prices are slightly lower on the north shore, but the number of projects and apartments under construction is only a fraction of the number of developments on the southern side with a total of 550 apartments under construction in 12 projects. And on the south coast, only in Siófok, double that number is being built," said Otthon Centrum's head of analysis.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.