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Within one year, the price per square meter of pre-owned apartments in the Hungarian capital has risen by 20 per cent, while with houses it has increased by 19 per cent. However, the sharp rise in prices seems to have stopped in September and the market is now stagnating, according to the latest data from Ingatlan.com, a leading Hungarian property website.
The main reason for the change is that supply continues to grow, while interest in properties for sale is falling. In mid-October, the price per square meter for apartments in Budapest was 959,000 forints (EUR 2,325) and 794,000 forints (EUR 1,925) for houses, compared to 800,000 (EUR 1,940) and 666,000 (EUR 1,615) forints a year earlier.
According to László Balogh, chief economist at Ingatlan.com, the year-on-year price increase is not surprising, the main sign of a possible stagnation is the fact that prices have not changed compared to the beginning of September.
The price freeze indicates that uncertainty and caution have appeared on the part of buyers, and sellers have started to adapt to this.”
The last time there was a similar stall in the property market was during the emergence of the coronavirus epidemic in the second quarter of 2020, but before that there had been no such change for years. It is still difficult to predict whether the stagnation will last, whether prices will fall or whether prices in the capital will pick up again once the economic uncertainties have subsided.
At current prices, a 40-square-meter apartment in Budapest can cost up to HUF 40 million (EUR 97,000), and the price can only increase further depending on the location, condition of the apartment and its amenities. According to an analysis by real estate company Duna House, in September, the least you can buy a property for was HUF 30 million (EUR 73,000), while in Budapest you will obviously get less for your money than in the countryside.
There are also huge differences between districts within the capital. While in the more expensive 12th district on the Buda side of Budapest, 30 million forints will buy you roughly 27 square meters, in the more remote districts you could purchase 52 square meters for the same amount of money.
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