Meanwhile, rent levels in the Hungarian capital are expected to continue a steady rise for the rest of the year.Continue reading
In addition to the numerous and deepening risks identified at the beginning of the year, there is a chance that real price levels could still rise overall in 2022. However, a trend reversal is increasingly likely, Portfolio reports.
The figures below are for the year 2021. However, since last year, in addition to the international environment, there have been changes in the domestic economy, with the Ukrainian war and rising inflation affecting house prices.
OTP Mortgage Bank has published its latest Residential Property Value Map, which includes the average prices of districts and counties for the whole of 2021, the price changes over the year, and the development of the housing market. The latest data show a 12.5% increase in the residential property market in 2021, with a one-third increase in turnover nationwide.
In all types of municipalities, there have been price increases, although in villages and smaller towns the rate of price increases has slowed to between 9% and 10%, while in Budapest and the cities with county status the rate of price increases has accelerated to 6% and 14% respectively compared to the previous year.
According to preliminary data, real estate sales have increased by a third in 2021. Approaching 170,000, the number of sales could have broken a record of almost a decade and a half last year. This has been helped by a delayed activation of demand in 2020, which was delayed due to the pandemic, and a number of home-building subsidies introduced last year. Budapest saw the biggest increase of 50%, while the number of transactions in villages and smaller or larger towns rose between 25-30%,”
said Dávid Valkó, senior real estate analyst at OTP Bank, commenting on the data.
In 2021, Somogy county was in the lead, boasting an average price of 520,000 HUF/m2. Pest county was only slightly below the half a million forint level, and even Hajdú-Bihar and Győr-Moson-Sopron exceeded 400,000 HUF/m2. Nógrád county is traditionally the cheapest, with an average of 138,000 HUF/m2 (EUR 350) last year, the only county below the 200,000 (EUR 500) limit.
There is a strong link between the counties and their county seat. The notable exception is Somogy, where properties near Lake Balaton municipalities, which still account for a significant share of the turnover, are on average significantly more expensive than in Kaposvár.
At the other end of the scale, after an annual increase of over 20%, Salgótarján remains unchanged with an average value of 164,000 HUF/m2 (EUR 420). Békéscsaba and Miskolc are still below the HUF 300,000 (EUR 770) level.
As regards the average price of residential property sold in 2021, the average price of residential property in 19 districts exceeds HUF 600,000 and in 23 others HUF 450,000/m2.
In addition to Budapest, the 19 most expensive districts are once again:
In addition to other Budapest districts and Pest County districts, the districts of Gárdony, Debrecen, Székesfehérvár, Balatonalmád, Győr, and Sopron were also included in the category of districts above HUF 450,000 (EUR 1,155).
The 5th district of the capital is still far ahead of Budapest with a price ranking of 1.052 million HUF/m2 (EUR 3,900), first crossing the million level. The most expensive area in Budapest is traditionally the Buda Castle. District V also stands out because the average price of apartments in its cheapest neighborhood was also over HUF 960,000 (EUR 2,460).
Featured image: illustration via Pixabay
