Demand for new builds increases significantly

Written by Christina Vontin

The new housing subsidy and the more favourable interest rate environment are stimulating the property market.

Sales figures for new-build flats rose by 43% nationwide between January and September compared to the previous year. According to the Central Statistical Office (KSH), the national average price for new flats rose from 62.6 million forints (approx. 165,000 euros) in 2023 to 66.1 million forints in the second quarter of 2024, while the price per square metre reached 1.2 million forints (around 3,000 euros). The average price per square metre for new-build flats in the capital was just under HUF 1.5 million in the third quarter of 2024 (+8% year-on-year). The average expenditure for new purchases in Budapest rose by 7 million forints to almost 97.6 million forints.

The price levels of the flats on offer vary greatly according to location within the city: the average price per square metre for new builds in districts 1, 2, 6 and 12 was already above HUF 2 million. In most other districts, the price per square metre is between 1 and 1.5 million forints.

There are also considerable differences in the county and smaller towns. In Székesfehérvár and Debrecen, the price per square metre was over 1 million forints, while in Nyíregyháza it did not even reach 700,000 forints. The price increase continued in Siófok, where the average price for new flats reached 1.4 million forints per square metre.