Significant Increase in Budapest Real Estate Prices Over Two Years

Compared to February 2016, the average price of newly built apartments in Budapest increased by about 200 thousand forints. While two years ago it was possible to access a newly built apartment at an average square meter price of around 480,000 forints, this amount is now around 689,000 forints. Rural prices have also undergone a similar change.

Two years ago, the introduction of several positive legislative changes for families and the VAT cuts have contributed to the price increase in Budapest. The market has been rumbling since then, breaking many years of record. Demand and supply have also risen, and experts say it will continue in 2018. According to some estimates, considering only the developments announced, 25,000 new homes can be built this year, most of which have already buyers.

The difference between Budapest and the bigger cities in the countryside is exactly 200 thousand forints, like the increase in the Budapest prices. The amount for what two years ago anyone could buy a new home in the capital today is completely needed in some rural big cities to get a new home.

According to the latest surveys, the most expensive rural city is Székesfehérvár, where the average square meter price rose to 489 thousand forints. Sopron and Veszprém follow it with an average square meter price above 400 thousand forints. And behind them are Kecskemét, Debrecen and Szeged too.

Picture: Average square meter prices in cities of Hungary (thousand forints)

The ever-expanding rural market is also a better opportunity for small investors. With good return on investment, university and industrial cities drive constant demand. Thus, although there is still a large gap between Budapest and rural cities, demand and supply, opportunities and returns make the countryside increasingly attractive for investors of the housing market.

Source:

https://www.vg.hu/vallalatok/ketszazezer-forinttal-nottek-budapesti-negyzetmeterarak-2-817019/

Picture: realestate.com and VG graph, 2018 February