Hungary recorded the highest increase in property prices in the EU over the last 7 years
House prices in Hungary in 2021 were 2.1 times higher than in 2015, registering the highest increase within EU countries, according to data from the Hungarian Central Statistical Office (KSH) and the EU statistical office (Eurostat).
According to the latest data from Eurostat, "house prices in Hungary rose in the 4th quarter of 2021 at the fastest pace in the EU in the last seven years."
In the 4th quarter of 2021, the average price paid for a flat in Hungary was 2.1 times higher than in 2015, while the Czech Republic was in second place with a price increase of 2.0 and Luxembourg was in third place with a price increase of 1.8 times compared to 2015," said László Balogh, senior economist of the website ingatlan.com.
Flat prices in the Budapest agglomeration increased by a third in one year! The popularity of the Budapest agglomeration remains unbroken despite the sharp rise in prices.
According to the website's data, the preliminary official price index for second-hand real estate recorded an increase of 20% at the national level in the last quarter of 2021, mainly due to an increased rise in prices for residential real estate in less expensive locations.
In the 1st quarter of 2022, however, interest in homes for sale was lower than two years ago, despite the fact that the 1stquarter of 2020 had already been affected by the coronavirus pandemic. This year's data suggests that housing demand is being held back by rising mortgage rates.
According to the statement, the market is likely to split in two, with prices of new houses likely to rise faster than those of second-hand houses, partly due to labour shortages and the rising cost of building materials. According to the survey, the average price per square metre for new flats in the capital was around HUF 1.1 million (EUR 2,910) in the first days of April, up 21% from the same period last year.
Record prices per square metre for new flats in Budapest
In January this year, sellers were asking more than one million HUF per square metre, more than ever before.
For second-market flats in Budapest, the increase was 17%, reaching HUF 873,000 (EUR 2,310). In cities outside Budapest, the average price per square metre for new flats was HUF 736,000 (EUR 1,950), an annual increase of 26%, while the average price for second-market flats rose by 28% to HUF 522,000 (EUR 1,380).