Average New Home Prices Close to 1 million/sqm in Budapest
Ábrahám Vass 2019.10.16.
Amid a persistently strong demand, Budapest’s newly built home prices have continued to increase in the 3rd quarter of 2019. The average price per square meter now reaches 925,000 HUF (Eur 2,955), an analysis of property developer Cordia shows.
In this period, the average square meter price of new homes neared 890,000 HUF (Eur 2,843) on the Pest side, while 1,25 million HUF (Eur 3,993) in Buda. This means that the average price of newly built homes in Budapest was 11% higher than at the beginning of the year, 16% higher than in the same period of last year, and 34% higher than in Q3 of 2017.
Cordia CEO Tibor Földi commented that although the rate of price increase has slowed down, this doesn’t indicate a turning point in Budapest’s housing market, as the cessation of reduced VAT, the reduction of newly launched projects, and the implementation of stricter energy standards will all contribute to further increases.
To put these prices into context, it is important to note that as of now, the average monthly wage in Hungary is 241,126 HUF (EUR 770), while in Budapest it is 299,859 HUF (EUR 958). So saving a total of 150 months of salary is still not enough to buy a 50 sqm newly built flat in the capital.