The average square meter prices of newly built residential buildings in Budapest has increased by 8 percent, hovering around HUF 1.1 million (EUR 3,061) in 2020, found a new analysis by Otthon Centrum. The first wave of the coronavirus crisis had a negative impact on the sector as well: by the end of last year, 11.5 percent less investments were launched, and the number of residential buildings under construction also fell by 7 percent compared to a year earlier.
Real estate dealer Otthon Centrum summarized the market data for newly built apartments in the fourth quarter of 2020, which showed a 11.5 percent decrease in the number of projects in Budapest compared to the same time period of 2019. In addition, the number of planned and under-construction residential properties also decreased by 7.7 percent.
The analysis also found that last year’s housing prices in Budapest drastically increased.
The average price of newly built real estate in the Hungarian capital was HUF 1,073,000/sq.m (EUR 2986), which is 8 percent higher than a year earlier. This of course can vary depending on the location and the characteristics of the property. The average price per square meter ranges from HUF 500,000 (EUR 1,391) to HUF 3 million (EUR 8,349).
Housing prices are still highest in the 5th district with HUF 2 million/sq.m (EUR 5,566), closely followed by the 2nd, 12th, and 6th districts.
In Buda with the exception of the 23rd district, the average price per square meter everywhere exceeded one million forints. On the Pest side of the city, the 7th and 13th districts showed similar prices. In other parts of Buda and the city center, the average price per square meter vaccillated between 800,000 and one million forints (EUR 2,226 -EUR 2,783) at the time of the survey.
According to data from another real estate dealer ingatlan.com, the average price of new residential properties in Budapest was HUF 58.5 million (EUR 161,414 ) in mid-February this year, while buyers were asked for less than HUF 36 million (EUR 100,188) for the cheapest price.
The average price per square meter of new flats in Budapest offered by Ingatlan.com is now HUF 895,000 (EUR 2,490 ), and that of newly built houses is HUF 707,000 (EUR 1,967) on average.
Featured photo via Csaba Jászai/MTVA