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Hungarian house prices increase further in Q1

Hungarian residential property prices rose by an average of 5.4% in nominal terms in 2018 Q1 compared to the previous quarter. This is a significant increase compared with the rate of price growth in the final quarter of 2017, the National Bank of Hungary (MNB) reported. 

Annual growth in house prices picked up slightly to 15.4% in nominal terms in the review period. In real terms, the quarterly growth rate of house prices was 4.8%, significantly above growth in the previous quarter, and the annual growth rate was 13.2%.

In Budapest, house prices grew by 5.6% in Q1 in nominal terms, faster than in previous quarters, and by 16.6% in one year. In provincial cities, the quarterly growth rate was 5.5% on average in nominal terms in 2018 Q1. That was similar to the growth in prices in the capital, but significantly higher than in the previous quarter.

The annual growth rate of house prices picked up, reaching 14.8% in the period. In municipalities, house prices grew by 5.1% in the first three months of 2018, only slightly below the national average. This brought the annual growth rate of house prices to 15.6%, slightly lower in annual terms than in the previous quarter.

The annual growth rate also accelerated somewhat: the 16.6% rate of growth exceeded the annual national average increase in house prices. The quarterly growth rate of house prices in cities outside Budapest was 5.5%, slightly below that in the capital. This resulted in a 14.8% annual rate of increase, slightly below the annual national average, but higher than in the previous quarter.