Panel apartments, brick apartments, family homes – it does not matter, everything is getting more expensive again in the capital: even panel apartments in housing estates are selling for a fortune, while brick apartments in the city center are approaching a price of HUF 1.5 million/m2 (EUR cc. 3,900). A recent analysis confirms, the prices of all three types of used apartments have risen by double digits this year, while demand continues to be fueled by government loan programs – but supply is not keeping pace.
As Index shared, real estate agency Otthon Centrum measured price increases in all three segments of the second-hand housing market compared to the same period last year: the price per square meter rose the least for family homes, while demand for apartments built using prefabricated technology increased significantly in the capital.
In Budapest, brick apartments sold for an average price of HUF 1.36 million per square meter (EUR 1 = 388 HUF) in the first nine months of the year, while buyers paid HUF 1.14 million for panel apartments and HUF 815,000 for houses. All three segments exceeded the average measured in the same period last year,
said Gábor Soóki-Tóth, summarizing the third quarter results.
According to the head of analysis at Otthon Centrum, prefabricated apartments have repositioned themselves in the capital’s used housing market. The average price per square meter for this type of property reached HUF 1.14 million, clearly showing the increased demand for prefabricated apartments. Otthon Centrum measured the highest specific price in District XI at HUF 1.27 million, closely followed by District XIII with an average of HUF 1.22 million.
In most of the downtown and Buda housing estates, the price per square meter is typically over HUF one million: the average price per square meter in Districts III, IV, VIII, and XIV is around HUF 1.1 million. Only in the outer districts of Pest can properties be purchased for less than this, with average prices ranging between HUF 900,000 and HUF 1 million.
The rate of increase was in double digits in every district, representing a price increase of between 35 and 45 percent in most districts. Typically, cheaper housing estates have risen in price to a greater extent, for example in Districts X and XX.
“Prefabricated buildings have always been the most affordable type of property on the urban housing market, which is why there has been a consistently strong demand for them. However, the favorable loan opportunities offered by the Otthon Start Program already attracted many prospective buyers to prefabricated buildings in the summer, which further stimulated demand. This also contributed to the significant price increase experienced during the period under review,” the expert explained the market processes surrounding prefabricated buildings.
The latter processes fit well with the trend that has been highlighted in previous articles in connection with the government founded housing support Home Start (Otthon Start) program. As a demand-stimulating program, it has a price-driving effect, further inflating Hungarian real estate prices, which are already sky-high. In order to consolidate price increases and alleviate the housing crisis, the supply side also needs to catch up, which would mean building as many affordable homes as possible.
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Via Index; Featured image: Pixabay
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