Average Budapest homes price tops HUF 500,000 per sqm

Sustainability

Image by Shutterstock.com

House prices in Budapest exceed the level recorded at end of 2008 by 51%, but in certain regions of Hungary they have still not reached pre-crisis levels, despite rising for several years, the National Bank of Hungary said in its biannual Housing Market Report released today.

In Western Transdanubia home prices rose by an also significant 25%. In the Southern Great Plain region prices were up 16.7% and in Central Hungary by 12.8%. Prices were up by 10.8% in Southern Transdanubia but were down 1.6% in the Northern Great Plain, and fell by 13.7% in Northern Hungary, national news agency MTI says.

Over the last three years, the annual nominal growth rate of house prices in Budapest was 21% on average, while at the national level house prices rose on average by 12.4%.

A breakdown by settlement types shows that house price trends now seem to be turning around. The annual rate of house price appreciation in Budapest gradually decelerated from 2016 and in 2017 as well. In Q1 and Q2 of 2017, the annual growth rate of house prices in Budapest was 17.3% and 14.6%, respectively.

According to the MNB house price index, prices in smaller settlements grew faster in 2017 than in the capital. In villages, the average annual increase in prices advanced by 26% compared to the rate of less than 10% in previous periods. In towns, average appreciation was 11%, broadly unchanged compared to previous periods.

According to preliminary data for H1 2017, the average per square meter price for new homes in Budapest was HUF 516,000, in county seats it was HUF 308,000 per sqm and in cities HUF 294,000 per sqm.

ADVERTISEMENT

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed

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.