Real estate prices are booming in Buda
March 24th, 2016
The turnover of the real estate market of Hungary was exceptionally high in February in Hungary – the first month showed similar values than last year, the second month however showed a 10% increase compared to last year.
The cause of the increased turnover is not only the greater demand, supply also grew as many started to sell their estates and the new family housing allowance also entered the market.
In total the first two months show a 5% increase compared to the same period last year, but the real effects of the market trends will show themselves in the coming months.
Panel flats were sold for 145 thousand Forints for a square meter in the Eastern region of Hungary and 175 thousand in the West on average, while in Pest buyers had to pay 276 and in Buda 315 thousand Forints.
The most popular area of Budapest remains the 13th District, 18% of buyers in the capital are interested in finding an estate here, while in Buda the 14th and 11th Districts follow closely and the inner city of Pest (the 6th and 7th Districts particularly) remain popular too.
In the first two months of the year buyer weren't able to bargain much, sellers of family houses only had to lower advertised prices by 2-3%, while sellers of panel apartments had to let only 4% go on average.
38% of sellers in Budapest sold their estates to move into bigger ones – on average they sold 65 m2 apartments for 22 million Forints. Investors still rule the Hungarian capital, they represented 41% of all buyers and spent an average of 23.8 million Forints.
Apartments which cost less than 200 thousand Forints per m2 did not experience an increase in prices, above this limit however the price increase was notable.