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Hungarian real estate prices still sky-high despite recent price drops
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Despite stagnation and a slowly arriving turning point in the Hungarian real estate market, prices were still higher in most cases in Q4 2022 than a year earlier, with a record low turnover rate as well.
The Hungarian Central Statistical Office (KSH) published its latest analysis of the changes in the Hungarian housing market. Record high prices resulted in record low turnover rates, which means that in some cases the inflation brought about even more disruption in the market than the Covid pandemic. Real estate prices soared last year, with the aggregate housing price index 16.6 percent higher than a year earlier, according to the Hungarian Central Statistical Office (KSH). According to telex.hu, this is more than the annual average inflation rate.
Hence, housing market sales fell by a fifth in Q4 2022. The number of houses sold fell all across the country except in the capital city of Budapest. KSH’s latest analysis confirms what most independent real estate agents have experienced in the last months: the price growth gradually slowed down during the year and turned into a decline in Q4 2022.
The price of new homes increased drastically
The average price for new homes, according to KSH, was HUF 54.5 million (EUR 145 thousand) in Hungary, up HUF 8.5 million (EUR 22 thousand) compared to the previous year. The average price per square metre is HUF 900 thousand (EUR 2,400), HUF 180 thousand (EUR 480) more than the average price in 2021.
In Budapest, the average square metre price exceeded HUF 1.1 million (EUR 2,935), up 21 percent compared to 2021. Among the districts with an increased number of new housing projects, only in District IV would it be possible to find a newly built apartment for less than HUF 1 million per square metre. At the same time, the limited number of new apartments available in District XII already sold for an average price of over HUF 2 million (EUR 5,338), while those in District V, in the heart of Budapest, close to the Parliament, were close to HUF 2.5 million (EUR 6,672).