The average price per square meter of new apartments in Budapest has broken a historic record, with sellers asking for more than one million forints per square meter in January this year, a level never before seen. This is a significant increase of 17 percent.
The average price per square meter in Budapest broke through the HUF 1 million (EUR 2,800) mark in January, which was unprecedented, Hungarian Forbes reported, based on Ingatlan.com. The compilation, based on more than 15,000 advertisements, describes the situation on the new housing market and the January supply prices in the capital and the county capitals.
With rising prices, housing construction is set to pick up in 2021. More than 27,000 building permits were issued in eleven months, 20 percent more than in the whole of 2020. The increase is mainly due to the reintroduction of the reduced VAT for housing construction in 2021, which could be further boosted by the central bank’s green home program launched last autumn.
Meanwhile, demand is also getting stronger, reflected in the rising prices. In January, the market for new residential properties in Budapest set a record: the average price per square meter of new supply rose by 17% year-over-year to HUF 1.03 million (almost EUR 3000), breaking the HUF 1 million (EUR 2,800) barrier, which was unprecedented. In Budapest, there are only 11 districts where the average price per square meter is below the million mark, says Ingatlan.com.
In addition, all districts have become more expensive when compared year-over-year. The three most expensive ones are districts I, II, and XII, where the average price is between HUF 1.7 (EUR 5000) and 1.9 million (almost EUR 5400). The cheapest are districts XIX, XX, and XXI, where the price per square meter is around HUF 612-788,000 (EUR 1,70-2,200). The largest supply is in districts III, XI, and XIII, but here too the increase is significant, ranging from 20 to 32 percent.
County capital prices
Among the county capitals, Debrecen is the most expensive, with an average price per square meter of HUF 788,000 (EUR 2,230), followed by Veszprém and Szeged with an average of HUF 766,000 (EUR 2,200) and HUF 743,000 (EUR 5,400) respectively. Kaposvár and Békéscsaba had average prices of HUF 446,000 (almost 1,250) and HUF 500,000 (almost EUR 1,500) respectively, a year-over-year decrease. Nyíregyháza is also among the cheaper cities, although the price of HUF 490,000 (almost EUR 1,400) represents an increase of more than 20 percent over a year. However, the supply is also typically tighter in the cheaper cities.
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