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Panel apartment prices in Budapest have declined for three consecutive months, while prices for brick-built homes have continued to rise, widening the gap between the two segments to nearly 21%.
According to Duna House, average panel apartment prices per square meter peaked in February and have since fallen gradually but consistently. By July, prices in the segment were more than 8% below their February high and had dropped to their lowest level since the beginning of the year.
The decline was not the result of a single weak month, Duna House said, with comparisons between the spring and summer periods also pointing clearly downward.
Brick-built apartments, by contrast, remained stable and became more expensive. Prices rose from spring levels into the summer months and reached their highest average price per square meter of the year in July.
As a result, the price gap between the two segments has widened again after temporarily narrowing in the spring.
In the spring, the average price per square meter of panel apartments was only 11% below that of brick-built homes, marking the closest point between the two segments. By July, the difference had widened again to nearly 21%, effectively returning to the broader gap seen at the beginning of the year.
Despite the divergence, average prices across Budapest’s used-home market have remained broadly stable.
The average price per square meter for used homes rose by around 1% from spring to summer, meaning the market as a whole is not experiencing a general decline.
Duna House said this apparent stability reflects two opposing trends. Brick-built homes account for around four-fifths of Budapest’s used-housing market, meaning their price increases more than offset the decline in the smaller panel segment.
On a per-square-meter basis, the fall in panel prices is actually larger than the increase in brick-built home prices. However, the greater weight of brick-built properties means they continue to set the overall tone of the market.
“Panel apartments react most quickly to changes in demand because first-time homebuyers and investors have the greatest weight in this segment, and this group has now become more cautious. Demand for brick-built apartments comes from a broader group of buyers, so it is more stable,” said Péter Szegő, lead analyst at Duna House.
Buyers of panel apartments are now in a clearly stronger position, Duna House said, as prices have declined and there is more room for negotiation.
Selling panel apartments has become more difficult, making realistic, market-based pricing increasingly important. Overpriced listings are likely to attract less interest, the company said.
Owners of brick-built apartments, meanwhile, can expect a more stable market, with prices so far showing no decline.
“If this direction continues, the price gap could widen further. The development of the panel segment will be one of the best indicators: if the decline stops here, it will signal stabilization of the overall market; if not, it will warn of a deepening slowdown,” Szegő added.
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