Property prices increasing rapidly in Budapest
The average price of transactions on the real estate market of Budapest increased by 1 million Forints in the first half of 2015 - average price is now therefore 15.5 million Forints. Prices also increased at county seats, in the larger cities average price stands at 9.7 million according to data provided by the Hungarian Central Statistical Office.
Freshly published data indicates that turnover of the Hungarian real estate market increased significantly in the first half of the year. The 30% year-on-year growth is almost completely attributed to the increased demand and transaction numbers of used apartments.
There is a great need on the market for new and newly built homes, however the supply is still extremely low as there are very few constructions - investors are still cautious about starting great construction projects. Since the beginning of the year only 800 newly built homes were registered on the market, which means the share of this segment is only 1.6 percent. Altogether more than 48 transactions took place on the market since January.
It is also apparent that the growth is faster this year than it was in 2014, the greatest increase in demand and prices was registered in the first two quarters of 2015 since the years of the global financial crisis.
Last year the market grew by an average of 2% per quarter, but the first three months of this year showed a 5% growth, the second 3%. This means that an average used flat became 13% more expensive in the first six months than it was a year before.
Prices of newly built flats also increased, but a greater fluctuation can be seen in this segment as there is very little turnover. In 2015 Q1 prices increased by an astonishing 8 percent, in Q2 however the increase was only 2.1% compared to the same period of last year.
