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New home prices growing steadily in Hungary

Sustainability

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Residential real estate prices continued to grow in the third quarter of 2017, both compared to the previous quarter and year-on-year. Prices rose not only in Budapest, but in other cities too.

According to the 2017 Q3 housing price statistics released by Eurostat, the statistical office of the EU, home prices grew 3% compared to the previous quarter and 10.2% compared to Q3 of 2016. The growth seems steady compared to previous quarters, where the y.o.y. increase was 10.3% in Q1 and 10.1% in Q2.

Preliminary figures released by the Hungarian Central Statistical Office (KSH) show roughly the same rate for Q3 year on year, a 9.9% growth for second hand homes and 15.7% for new ones, business portal vg.hu reports. László Balogh, lead analyst at real estate property listing site ingatlan.com told vg.hu that the growth is not surprising.

The trends changed in as much as the growth rate slowed in Budapest and accelerated in other cities, fueled by increased demand. In Budapest, the growth rate was higher for homes below HUF 30 million. In mid January, the average price per sqm in Budapest was HUF 548,000, Balogh said.

Meanwhile, János Lázár, head of the Prime Ministerʼs Office, said at his regular press conference yesterday that the government will reduce the administrative burden for those applying for funding from the Home Purchase Subsidy Scheme for Families with children, known by its Hungarian acronym of "CSOK". The government would finalize details at the next cabinet meeting in two weeksʼ time, Lázár said.

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