Hungarian real estate prices show a record increase in Europe
The Hungarian real estate market has experienced a notable revival in 2024, reversing previous years’ downturns. Data from the Hungarian Central Statistical Office (KSH) shows a 36 percent increase in home sales. With the overall house price index reaching 291 percent of the 2015 base, Hungary leads the EU in housing price growth, highlighting a significant recovery and ongoing expansion in the market.
Hungarian real estate market in recovery
Economx reports that the Hungarian real estate market has shown remarkable signs of recovery in early 2024, following a downturn in previous years. According to the Hungarian Central Statistical Office (KSH), the number of homes sold increased by 36 percent in the first quarter of the year, reversing a 23 percent decline from the previous year. This resurgence comes with a notable price hike, with existing house prices rising by 5.3 percent and new house prices by 4.6 percent quarterly. The price increase was widespread, except for detached houses in eastern Hungary, where no significant change was observed.
Substantial growth
In 2023, the housing market saw a slower price increase, yet the overall house price index reached 271 percent of the 2015 base. Despite consumer price inflation outpacing nominal house price growth last year, leading to a 9.4 percent decrease in real prices, the first quarter of 2024 marked a significant shift. Real prices of existing and new dwellings were up by 4.0 percent and 3.4 percent quarter-on-quarter, respectively, and rose by 4.4 percent and 10 percent year-on-year. As of early 2024, the real price of existing houses stood at 74 percent above the 2015 base, while new homes were 111 percent higher, highlighting a substantial recovery and growth in the Hungarian real estate market.
Insane price per square metre
In the Hungarian real estate market, new housing prices have surged, increasing threefold since 2015, compared to a doubling in construction costs. In 2023, the average new home price rose to HUF 62 million (EUR 156 thousand) and further increased to HUF 65.8 million (EUR 166 thousand) in early 2024, with the price per square metre nearing HUF 1.2 million (EUR 3,020). Existing dwellings also saw price rises, with the average price reaching HUF 31.4 million (EUR 79 thousand) in early 2024, up from HUF 29.2 million (EUR 74 thousand) in 2023. In Budapest, the average price per square metre for existing apartments increased to HUF 918,000 (EUR 2,310).
One of the biggest growths in Europe
In the first quarter of 2024, the Hungarian real estate market saw significant growth, with the aggregate house price index rising by 5.2 percent. This increase places Hungary at the top among EU countries, with house prices nearly 291 percent above the 2015 base, according to the Central Statistical Office (KSH). Across the EU, the aggregate housing price index stood at 149 percent of the 2015 base, with a modest 0.4 percent quarterly rise. Other countries like Bulgaria and Poland also experienced notable price jumps, while Denmark and France saw declines. Hungary’s domestic price increase of 290.7 percent is unparalleled, with Lithuania (227.7 percent) and the Czech Republic (214.3 percent) trailing behind.
Read also:
- Renting or buying: What’s the better choice for students in Hungary?
- Home construction crisis reached Hungary, prices record-high
Source: