Fresh data shows housing prices skyrocketing
September 28th, 2015
Flats are getting more and more expensive, and based on the most recent data by FHB House Price Index the trend is accelerating. Nominal and real prices have both increased in the past quarter, with 8.2 and 9 percent respectively.
Prices now are basically on the same level as they were in the first quarter of 2005 and at the end of 2010. Thanks to the increase in the past quarters average prices are currently only 10 percent less than they were when they were at their highest before the financial crisis.
The positive trend has been continuous since more than a year in the Hungarian housing market. In the first quarter of 2015 the increase was 4% after the 2.5-3% increase in late 2014. Since the start of the increase nominal prices have increased by 14, real prices by 15 percent.
Constructions seem to be starting up as well: in the first half of 2015 more than 5500 construction permits were issued – the last time the number reached this high was in 2011. Compared to the first 3 months of 2014 44% more permits were issued. The trend may be promising, but this number is still only a fragment of the pre-crisis numbers.
In the first half year there were fewer newly built flats handed over than in the same period last year, but more than in 2013, the low point of the post-crisis market.
Prices increased in all regions across the country in early 2015. The largest growth was recorded in Central Hungary and Western Transdanubian regions.
Affordability of Hungarian real estate improved significantly between 2000 and 2015, only a couple of counties show worst conditions for buying a home than in the years before.