Moderate changes in the Hungarian real estate market

Prices of the real estate market has been increasing for seven years now, but we’re finally stepping in the phase of consolidation – according to the press conference of OTP Ingatlanpont. However, this only results in price correction, not recession. If salaries keep growing, demand can start to increase once again after a few years of stagnancy.

On an international scale, we’re usually talking about cycles of eight years. 6 years are already gone by in Hungary. Since the end of 2017, we have always been in the top three regarding price growth in Europe, but nowadays we’re back in the middle. “During the time period ahead of us, the remission will mainly affect rental prices, because they’re still very high compared to apartment prices in Hungary. Furthermore, many rentable apartments are turning up lately, which also contributes to the decrease of rent.” – says Valkó Dávid, leading analyst of OTP Ingatlanpont

Portfolio.hu, an online economic magazine reports that in 2019, prices have increased by 15% (22% in Budapest) compared to last year in the Hungarian market, but this number seems getting lower and lower with each passing quarter. The average price in Budapest last year was 618 thousand forints per square meter. Regarding new apartments, the same time period brought a relapse of 33%. This means 5800 sold apartments in Budapest. Residences offered with a 2020 handover cost around 860 thousand forints, while the ones with a 2021 handover can cost up to 960 thousand.

Reference: Portfolio.hu