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Demand continues to rise on real estate market

The real estate market in Hungary kept on rolling in the early part of 2019, with a high number of transactions, strong demand, and the new building segment driving the market in the first three months of the year, according to research by real estate specialist Duna House.

Prices for apartments in prefab blocks have grown exponentially in the last decade (photo: Peter Gudella/Shutterstock.com)

Those looking for newly built homes may encounter prices above HUF 1 million per square meter in no fewer than four districts of the capital. While the increase in prices is constant, says Duna House, "panel" dwellings in old socialist-style prefab apartment blocks have become especially expensive, with nominal prices having doubled since 2008, while real values also exceed by far their levels a decade ago.

Only Western Hungary registered a markedly lower price increase for panel homes. The average price of such homes was HUF 272,000 in the west of the country, and HUF 309,000 in the east, but almost double the latter in Budapest.

More than 50% of home loan transactions in Budapest had a value above HUF 15 mln, with loans in the HUF 5-10 mln range being the most prevalent in the countryside.

Similarly to prices, the average size of home loans is on the increase, which mainly affects rural areas, Duna House notes. On the sales side, moving to a larger apartment in the capital is the main motivation, while in the countryside, the highest percentage of properties sold are inherited ones.