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Vacation home prices on the rise

Vacation home prices in Hungary have grown abruptly, in some areas by as much as 20%. In towns around Lake Balaton, prices can climb to HUF 600,000 per square meter or more, according to data available on real estate site ingatlan.com.

Based on advertisements posted by more than 10,000 private sellers on ingatlan.com, prices for vacation homes are growing at a faster pace than the average increase on the real estate market, news portal hvg.hu reports.

On the northern shore of Lake Balaton, the average price per sqm of homes was HUF 315,000 in April, a 20% increase year-on-year. Balatonfüred is one of the most popular locations, where apartment prices have reached HUF 650,000/sqm, a 16% increase. Houses have become 14% more expensive, reaching HUF 377,000/sqm, while vacation homes currently fetch HUF 440,000/sqm, a 5% increase.

On the southern shore of the lake, home prices have grown 16% in one year, reaching HUF 280,000/sqm on average. One of the most popular locations is the city of Siófok, where houses have become 25% more expensive, reaching HUF 313,000/sqm, and apartments 8% dearer at HUF 654,000/sqm. Vacation home prices have jumped 16% to HUF 433,000/sqm.

Lake Velence, situated between Budapest and Lake Balaton, is also a popular target for vacation home buyers. In the towns of Gárdony and Velence, average prices have grown by 18%, to HUF 300,000/sqm. As for locations by the Danube, the towns of Dunakeszi, Szentendre and Budakalász are the most expensive, with prices as high as HUF 420,000-441,000 per sqm.

Home prices in Hungary in general were up 11.5% year-on-year in the third quarter of last year, a gauge by the National Bank of Hungary (MNB) shows, cited by state news agency MTI. The increase slowed from 15.4% in the previous quarter.