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Shifting trends in Budapest: Real estate prices, population declines, and creative housing solutions – VIDEO
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Over the past two decades, Budapest’s real estate market and population landscape have undergone significant changes, with varying trends across its districts. These shifts reflect broader transformations in the capital, from population declines in the city centre to rising property prices in certain areas, and even the emergence of tiny, innovative living spaces.
Population decline in Budapest’s core districts
Between 2001 and 2022, Budapest’s population decreased by 5%, with 17 out of its 23 districts experiencing a decline, G7 reports. Notably, the most severe population losses occurred in the central districts of the city, such as the V, VI, and VII districts. In the V and VII districts alone, populations dropped by 24%, while the VI district saw a 20% reduction.
Interestingly, while inner-city districts faced depopulation, areas on the outskirts saw growth. The XXIII district recorded nearly a 10% increase in population, with the XXII and XIII districts also experiencing significant growth, each over 7%.
The issue of population decline in the VI district has been highlighted in connection with a potential ban on Airbnb. Local authorities have raised concerns that short-term rentals could be driving residents away, a factor contributing to the district’s noticeable depopulation.
Real estate prices: rising but uneven
While population declines mark the city centre, the real estate market in Budapest has seen notable activity, especially over the summer. Prices nationwide have shown little month-to-month change, with a slight increase of just 0.1% between July and August. However, over the past year, real estate prices have continued to climb at a steady rate of 6.5%, a slight uptick from the previous annual figure of 6.4%, László Balogh, economy expert at ingatlan.com, told Economx.
In Budapest’s outskirts, specifically in the agglomeration of Pest County, real estate prices surged by 1.2% in July, while the rest of the country saw more mixed results. Despite this, the annual growth in Pest County remained the lowest in Hungary, at only 3.2%.