Renovated prefab homes seen as worthwhile investment



Prices between renovated and medium-quality homes in prefabricated buildings can be significant, making it worthwhile investing in such real estate, business news portal reports, citing home financing company OTP Lakástakarék.

The price gap between a poor-quality and a renovated flat in a prefabricated housing block (the so-called panelház in Hungarian) can be 20-25%, which makes it worth considering renovation, says the report. On top of price rises on the market, this can result in a further HUF 3.5 million being added to the market value of a flat costing HUF 15 mln, according to calculations by OTP Lakástakarék.

The highest rate of increase in real estate prices during the last 4-5 years has been seen in the case of prefab flats, now reaching HUF 225,000 per square meter on average. Opportunities are countless, given that there are about 780,000 such prefabricated flats in Hungary, notes.

Real estate agency Duna House recently released a study which showed that for prefab homes in some areas of the capital (Vizafogó in District 13 in Pest, or Gazdagrét in District 11 in Buda), prices per sqm were on average HUF 357,000-376,000 in 2016, while last year they reached HUF 411,000-417,000.

Price increases have been slower in less popular areas of Budapest with many prefab blocks, such as Havanna in District 18 or Újpalota in District 15. However, the difference between price ranges has  decreased, which shows demand is growing even for prefab flats located in areas that were previously less attractive, the report notes.

Poland Inflation Unrevised in June Figures

Poland Inflation Unrevised in June

Hungary Chairs 1st Ecofin Meeting of EU Presidency EU

Hungary Chairs 1st Ecofin Meeting of EU Presidency

50% of Ransomware Victims Saved by Backups Innovation

50% of Ransomware Victims Saved by Backups

Hungary Could Boost Guest Nights to 50 mln by 2030 Tourism

Hungary Could Boost Guest Nights to 50 mln by 2030


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.