There is an Incredible Amount of Apartments on the Market in Budapest
We looked a bit into the future to calculate how many new properties could be expected on the market in Budapest. The majority of the 500 projects can already be completed this year, with a total of 25,000 flats, so this year only 15,800 new residential properties can be put on the market, some of which have already been finished. 69 percent of the newly built homes is already sold. The XIII. District is the most popular for developers, with a total of 6750 apartments under construction.
According to the most recent analysis of the Budapest Housing Market Report, in the second quarter of 2019, nearly 25,000 new homes will be built in at least four blocks of flats in Budapest, within a total of 500 projects. Of these, only 31 percent did not find any more. There is an increase in prices. In three months, the price per square meter for apartments where developers indicated the price and had not yet taken or seized the apartments increased by 4.5 percent.
These projects are located in different parts of the city, but the most popular place for developers is still XIII. district where 6750 apartments are currently being built. In districts VIII, IX. and XI. there are thousands of apartments under development. In district XXI. there are only 56 properties under construction, finished in the near future, which may be related to the less favorable location. The high cost of construction affects the investor even if the site prices are cheaper here, so they prefer better-located areas. However, due to the smaller number of habitants, these areas are more liveable and cost effective.
This year will be the peak of completed projects and the number of new homes, although the completion of many projects has been delayed due to reduced VAT rates. The construction of more than 4,600 homes was completed in the second quarter of 2019, within the framework of 68 projects, but is expected to be similar in the coming quarters.
For the following quarters
When the initial VAT extension was not announced, developers promised over 9,000 new homes by the end of 2019, but this figure dropped to 4,300. It also appears that after the announcement of the extension, more and more homes are expected to be delivered in 2020 and beyond. Completed homes increased from 3,000 to 4,600 in the previous quarter. The exact figure is only available at the end of the year, but based on the calculations made so far, 15,800 new homes will be delivered this year.
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