13 February, 2024

Interesting facts at the start of 2024

Prices tripled since 2015. Lots of unsold apartments in 2023 and 37% increase in demand this January. What can we expect from the Budapest property market?

2024 started heavily especially on the Budapest property market. Demand in general increased by 22% overall the country compared to January, 2023. The level of increase is even higher in the capital where we can speak about 37% increase. Nevertheless I need to mention that it is still behind the level of 2022, but it gives hope for a better market this year.

And hope is what we need on the market definately as there are currently 1,200 new apartments completed last year which could NOT be SOLD. This high figure is the second highest number in the past ten years. The market of the second hand apartments was very slow as well with a low number of new advertisments.

PRICE INCREASE was however in Budapest during January 1,9% due to the decreased interest rates of mortgage loans and the introduction of new state subsidies for local family purchasers. We can not accept the same increase of course during each month of the year, but it forecasts a growing stable market. The below chart shows the price increase in Budapest happened since 2015 according to ingatlan.com, the leading local real estate portal (red), MBH bank (green), MNB Hungarian National Bank (dark blue) and the KSH, Central Statistical Office (light blue).

The MOST EXPENSIVE DISTRICT remains district V., downtown of the city on the Pest side which is followed by the central Buda districts, district I., XII., II. and XI. You can see here the average sqm prices of second hand apartments (red) and new flats (blue). Already in nine districts the average sqm price is above 1 million HUF.

I find it important to emphasize though that 77% of the demand is for apartments below 60 million HUF. And there is a heavy drop in demand above this level, especially above 80 million HUF. Owners of MORE EXPENSIVE PROPERTIES need to expect a long sales period if they are not ready to make a little compromise on the sales price.