Real Estate Prices Still Rising in Downtown Budapest
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In the downtown districts of Budapest, both general prices, as well as price/sqm for an apartment have increased, according to research by Duna House.
"Prices continue to rise in downtown Pest, which is a popular destination among those planning both short-term and long-term apartment rentals. In Districts V, VI and VII, according to the data of apartments sold in the district, compared to the second half of the previous year, it was possible to buy an apartment here at an average price of 7% higher this year," said Károly Benedikt, head of PR and analysis at Duna House.
Real estate prices in downtown Pest have not decreased compared to the previous semester. According to a statement issued by Duna House, a Hungarian real estate company, those who want to buy real estate in downtown areas that are frequented for renting will have to pay an average of 7% higher price / sqm.
In the first half of 2023, buyers were expected to pay an average of HUF 50-100 million for downtown real estate, and there was no shortage of extremes either. A District VII studio cost up to HUF 17.5 mln, and a fully furnished luxury apartment in District V went for twenty times that, according to Duna House data. Among the inner-city districts, clients of the real estate brokerage network spent the most on real estate purchases in 2023, exceeding HUF 100 mln on average.
District V leads in terms of sqm prices, according to data from the sales of the first half of 2023, compared to the same period of the previous year. By comparing the price / sqm it is still 26% higher than the same period last year, but 2.5% lower compared to the previous semester (HUF 1.36 mln / sqm), in the most expensive district of downtown Pest.
The second highest price/sqm rate is found in District VI, where the average for the first half of the year rose by 10% compared to the same period of the previous year, to HUF 980,000 / sqm, an 8% difference compared to the price level of the second half of 2022.
"With the end of the epidemic period, inner-city districts regained their popularity from the end of 2021, and then in October of last year, interest in them increased more than ever before. In Budapest, most people (22.5%) chose District VII, a fifth of the property seekers were in District VI, while 15.8% indicated District V as their preferred area,” the analyst added.
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