How far can real estate prices in Hungary increase?

In the last ten years, it can be observed that real estate prices have been growing all over Hungary. This exponential growth was not even disturbed by the economic effects of the coronavirus pandemic. Hungary is still in the middle of Europe in terms of price competition. Experts believe that the rise in prices will not stop.

September 27 was World Tourism Day. On this occasion, Duna House collected the real estate prices in the capitals of Europe. The latest Eurostat data show that real estate prices rose by 6.1 per cent in the first quarter of 2021 compared to the same period last year, based on the housing price index measured in EU member states.

The annual growth rate has not been as high since the third quarter of 2007.

In 2020, despite the impact of the coronavirus epidemic, an increase of 1.7 per cent will be observed. The highest price increase was in Luxembourg, where property prices rose by 17 per cent from a year ago. In addition, the rate of growth was higher than 10 per cent in Denmark, Lithuania, the Czech Republic and the Netherlands, napi.hu writes.

Of the Visegrad Four, in addition to the Czechs, the Polish are also ahead of Hungary.

“Examining the whole of Europe, the Hungarian real estate market is in the price competition at the end of the middle field,” says Károly Benedikt, Head of PR and Analysis at Duna House. He added: “It can be bought in Budapest at a price of between HUF 1 million (€ 2791) per square metre. According to the latest Numbeo statistics, the price level is almost the same in Croatia and Estonia, but it is cheaper to buy apartments in the capitals of countries such as San Marino, Serbia, Ukraine, Romania or Greece.”

The least should be spent in Turkey, the most in the UK, France and Luxembourg per square metre.

In Luxembourg, for example, it is over HUF 4 million (€ 11164 ) per square metre of real estate. Experts add that the comparison should not be made solely based on house prices. It is also important to take into account the income situation of the population, which can vary significantly from country to country.

Source: Eurostat, napi.hu