Different parts of the Hungarian real estate market reacted in varied ways to the economic crisis. While prices increased by around 3% in the XI district of the capital from 2008-2010, apartments cost nearly 30% less in the VI district, according to the report of OTP’s mortgage bank, OTP Jelzálogbank.
Prices kept falling on the real estate market from 2008-2010. A nearly 7% price drop was registered at credit institutions on an average countrywide basis in the same period. In the meantime, prices in Budapest dropped by an average 8%. However, as the study pointed out, there are also significant differences in the capital and itrs neighborhood.
While the average price of a sqm in Budapest is HUF 262 000, in Újpalota it is only HUF 159 000, but it can reach up to HUF 584 000 in the Castle district. Real estate sales show a rather dismal picture, sales volume dropped 38% in Budapest and 53% countrywide on an average bases, based on turnover data from 2008-2010.
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