Rising prices lure real estate investors
The main reason for real estate acquisition in Hungary is investment, according to a recent study by real estate broker Duna House. Interestingly, entrepreneurs ranked only second as the most active buyers of property.
Duna House analyzed the data available in its database in July. This showed that the number of those planning to buy homes for investment purposes was higher than a year ago. Investment is now the main purpose for buying a home for residents both inside and outside Budapest, news portal index.hu reported.
In Budapest, most buyers are employees, followed by entrepreneurs and pensioners. As for the reason for their acquisitions, the most frequent responses were for investment, buying a first home, moving to a bigger one, or moving to a smaller one.
Typically, employees located in Budapest spend HUF 29.9 million on homes with an average space of 63 square meters. Pensioners have a somewhat higher budget and look for larger homes, spending HUF 34 mln on average on 67 sqm. Entrepreneurs budget for HUF 37 mln on average, looking for homes of 68 sqm.
The figures are somewhat different in Budapest in terms of the reasons for acquiring property. While investors look for flats of 54 sqms in the range of HUF 30 mln, those searching for a first home would typically spend HUF 29.3 mln for a 56 sqm home, while buyers looking to move to a bigger home target 107 sqms with a budget of HUF 49.3 mln.
Outside Budapest, prices differ significantly compared to the capital. The survey shows that investors would spend HUF 17.1 mln for a 59 sqm home, while those buying their first home can afford 81 sqm for a mere HUF 14.8 mln, and those moving to a bigger home are aiming at 114 sqms for just HUF 25.2 mln.
In terms of social status, employees outside Budapest eye homes in the range of HUF 15.9 mln, pensioners HUF 16.2 mln, and entrepreneurs HUF 22.2 mln.
Home prices rising steeply
As for home prices, the Duna House figures are in line with other statistics indicating a steep rise year-on-year. In Eastern Hungary, prefabricated (so-called "panel") home prices have risen from HUF 217,000 per sqm to HUF 267,000 per sqm. In Western Hungary, the price has risen from HUF 205,000 per sqm to HUF 255,000 per sqm.
Prices have risen at an even higher pace in the capital. On the Buda side of Budapest, prices have risen from HUF 367,000 per sqm to HUF 478,000 per sqm, and on the Pest side from HUF 331,000 per sqm to HUF 416,000 per sqm.
For brick resale homes, price rises are steep in Budapest, where the average price has risen from HUF 552,000 per sqm to HUF 700,000 per sqm on the Buda side. In Eastern Hungary, however, the average price in the category has actually fallen slightly to HUF 305,000 per sqm, down from HUF 308,000 per sqm a year ago.
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