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The price of used brick apartments and panels in Budapest fell at the end of last year, Otthon Centrum, a real estate agency told MTI. According to their data, the price of used brick apartments in the capital decreased by 3.5%, while the price of panels decreased by 2.5% in the fourth quarter of last year compared to the previous three months.
The OC explained that in the last three months, the average price of brick apartments in Budapest was 963,000 forints (EUR 2,435) per square meter. District V on the Pest side has remained the most expensive, with an average price per square meter at HUF 1.2 million (EUR 3,035).
It was pointed out that the prices of brick apartments in the capital have developed hectically compared to the third quarter of 2022: in District I on the more expensive Buda side of Budapest, prices have fallen by 8%, while in the IV, V, and XII districts, prices have decreased by more than 10%. However, the latter three districts had the highest price increases in the third quarter of last year.
The average price per square meter of prefabricated panel flats was HUF 743,000 (EUR 1,880) in the last three months of last year, 2.5% lower than the average for the previous quarter. The only districts to deviate from this were III, IX, where prices fell by 4%, and VIII, where prices per square meter fell by 8%, while a significant price increase of 16% was recorded in District XIII.
But despite the price cuts, buyers are still waiting. According to data from Balla Real Estate, the number of transactions has fallen by 40-50% in recent months, and demand is falling even faster.
Ákos Balla, managing director of the real estate network, said in a statement that buyers are uncertain because of high loan rates and rising energy prices. He noted that the rise in interest rates is a sensitive loss for the real estate market, as in some locations the proportion of people buying property with loans has reached 50 percent.
The expert also referred to the market of newly built apartments, which has seen annual price increases of 20-30 percent in recent years. These prices are not expected to fall, as construction and financing will not become cheaper, and further price increases are likely. This will result in fewer transactions, and in his view, fewer newly built homes coming onto the market in the future.
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