Budapest is Still the Cheapest Capital City in the Region
September 15th, 2017

Budapest is Still the Cheapest Capital City in the Region

Budapest's popularity in housing construction and home purchase remains unbroken. Although the price per square meter rises, the market has not yet reached its limits, so it is still expected that further developments and investments will take place. Based on the most recent analysis of ingatlan.com, real estate purchase is the cheapest in Hungary, compared to the housing market of the other countries in the region.

In the first quarter of 2017, the square meter price in Budapest was 361 thousand forints, the closest was the prices in Bucharest: 370 thousand forints (translated value). At regional level, this amount is the lowest, since in Warsaw 534 thousand forints, in Bratislava 578 thousand forints, while in Prague 635 thousand forints were the average prices per square meter. The trend of steadily increasing prices in recent years has been shown in all capital cities, except in the capital of Romania, where there has been some decline in 2014.

Overall growth can be attributed to this year, with 3.1% increase in Hungary, while in the rest of the region a milder increase of 1.2-1.8% occurred in 2014. The following years continued to rise, while in the first quarter of this year, investors in Hungary faced an 8% price increase - twice the EU average, with which Budapest became the leading edge in the EU.

"Housing prices have risen dramatically in Hungary over the past few years, but domestic real estate prices are not a major issue in the region. This predicts that the upward trend may remain in the upcoming 2-3 years, but the price increase may be significantly reduced” – reported László Balogh, senior economic expert of ingatlan.com.

 

More Difficult for a Local

However, in Budapest prices are rising drastically, still an average 50 square meters apartment here is the most accessible. Ingatlan.com calculates that it "only" takes a 7.6-year for someone to buy his own 50-square-meter apartment if one saves all his monthly salary.

A Bratislava customer is in the most difficult situation: it is necessary to set aside about 11.3 years of average payment for purchasing his own apartment of similar size. The situation is not much easier in Prague and Romania: while in the first capital it takes nearly 11 years of saving, the latter takes about 10 years.

 

Source:

 

http://www.portfolio.hu/ingatlan/lakas/sokallod_a_budapesti_lakasarakat_nezz_korul_a_szomszedos_fovarosokban.261525.html

 


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