New figures released by real estate agency Otthon Centrum revealed that real estate prices in the Hungarian capital are surging. The average price per square meter of new residential buildings under construction in Budapest increased by 21.8% to more than HUF 1.3 million (EUR 3,424) in the first quarter of 2022. At the same time, 13.1% fewer new homes were built in the capital than a year earlier.
Otthon Centrum summarized the new housing projects in Budapest that were advertised online in the first quarter of the year: 361 new projects are under construction, representing 27,400 homes. The number of projects is 15.7% lower now than a year ago, while the number of residential properties being built is down by 13.1%.
Almost a third of the housing stock – around 8,700 homes – is still in the planning stages, up 2% from a year ago.
A square meter of a newly built home is offered at a median price of 1.3 million forints (EUR 3,424), a significant increase of 21.8 percent compared to the first quarter of last year, said Gábor Soóki-Tóth, the head of Otthon Centrum’s market analysis team.
Despite the substantial increase in prices, there are significant differences between the 23 districts of the capital: the average price per square meter varies between HUF 768,000 (EUR 2,024) and HUF 2,350,000 (EUR 6,192) per district, he added.
The difference between projects is even greater: the average price of the cheapest investment is HUF 614,000 per square meter, while the most expensive is HUF 3.68 million. The former one is located in district XIV, the latter in district XII.
In the first quarter, the most expensive districts for new dwellings were district XII with an average price per square meter of HUF 2.35 million (EUR 6,192), followed by district I with HUF 2.25 million (EUR 5,928) and district II with HUF 1.97 million (EUR 5,138). Surprisingly, for the first time this year, District V, often called “the heart of Budapest,” is not among the top three most expensive neighborhoods anymore.
In the most popular districts, where thousands of new homes are being built, such as districts IX, XI, and XIII, the average price per square meter varies between HUF 1 million and 1.5 million (EUR 2,634-3,952).
Featured photo illustration via Pixabay