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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 vg.hu 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, vg.hu 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.