The year saw notable disparities in property prices.Continue reading
As a result of rising demand, by the end of last year the supply of new homes still available in the capital had fallen to just under 6,000, which (if no new developments were to start) would cover less than a year’s demand. Cordia is responding to the market changes by increasing its supply by more than 1,000 apartments this year, the residential property developer announced in a statement.
In Budapest, 2,600 new apartments found their new owners in the last quarter of 2024. This, on the one hand is close to the full-year figure for 2023, and on the other hand is the highest volume since 2018, Világgazdaság quoted the company as saying. For the whole year, 7,300 new-build apartments were bought in the capital last year, thanks to the fourth-quarter recovery. This was close to the dynamic figures of the 2016-2018 period.
By the end of the year, however, the supply of available new-build homes in Budapest had fallen by more than 1,000.
To boost supply, Cordia, Hungary’s largest residential property developer, would build apartments on a combined area of 120,000 square meters, that would mean over 1,000 new properties on the market.
In addition, three quarters of these apartments are expected to be on the market in the first quarter of the year.
The importance of the project is illustrated by the fact that
the Cordia developments alone will increase the supply in the capital by almost a fifth compared to the number of apartments waiting to be bought at the end of last year,
the statement said.
At the same time, price increase has continued in the capital: in Buda (excluding luxury projects) the average gross price per square meter increased by 13 percent to around HUF 1.9 million (EUR 4,660), in Pest by 9 percent to around HUF 1.6 million (EUR 3,900).
Based on market data, new-build apartments continue to command higher rents than less modern ones. For instance, among the properties built by Cordia on Corvin promenade, studio apartments rent for an average of HUF 270,000 (EUR 660) per month, two-room apartments for an average of HUF 330,000 (EUR 810) per month and three-room apartments for around HUF 500,000 (EUR 1,200). These rents are on average 25 percent higher than the rents of older, well-maintained apartments in the area.
The company’s figures are in line with MBH’s Housing Market Outlook:
between 2010 and the second quarter of 2024, house prices increased by 52 percent and rents by 25 percent in the EU.
House prices more than tripled in Estonia (232 percent) and Hungary, where house prices rose by 218 percent and rents doubled.
Via MTI, Featured image: Pexels