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An analysis by ingatlan.com, composed of 40,000 advertisements, presents the massive increase in summer housing prices in the main holiday areas of  Lakes Balaton, Velence, Tisza and the Danube Bend.

The increase, which began in the second half of the 2010s, could be credited to investors who had earlier moved from urban areas to places such as Lake Balaton or the Danube Bend. Despite the stagnation in the national housing market during the pandemic, sales of summer homes continued due to the “quarantine effect,” when many turned to residences in green areas or near water.

“Interest in apartments, houses and holiday homes – has increased by 150%, two and a half times since 2016. Five years ago, almost 32,000 inquiries were received for these properties between January and May, but this year more than 77,000,” said László Balogh, the leading economic expert of ingatlan.com.

Foreign Investors Virtually Disappear from Real Estate Market
Foreign Investors Virtually Disappear from Real Estate Market

Foreign buyers and investors have virtually disappeared from Hungary’s housing market this year due to the coronavirus pandemic, according to pro-government Magyar Nemzet. Citing ingatlan.com data, foreign participation in Hungary’s real estate market dropped by an annual 80 percent between January and October. Foreign buyers purchased more than half of properties in Budapest, mainly the […]Continue reading

Undoubtedly, Lake Balaton, Hungary’s most prestigious holiday area, has achieved the same prices per square meter that only currently exist in the capital. Future buyers will now have to pay 700,000 HUF (2,021.92 EUR) on average per square meter. The drastic change could be explained by the fact that on the north shore of the lake, supply has fallen by 40%, and on the south shore many houses are being built with financial interests.

At Lake Velence, in Gárdony, the average price per square meter was 655,000 HUF (1,891.94 EUR), which means a 20% increase. The price hike was similar in the town of Velence, 17 percent.

At Lake Tisza, prices have also increased by 20%. While not as high as at Lake Balaton, future buyers still have to spend 175,000 HUF (505.48 EUR) per square meter in the area. For instance, in Poroszló, the usual price was around 179,000 HUF (517.03 EUR) in June.

Lastly, the area of the Danube Bend has seen an increase of 44-59% in prices. In popular cities of the region, namely Zebegény, Nagymaros, and Visegrád, the square meters of real estate were up for sale for 457-542,000 HUF (1,320.03 EUR – 1,565.55 EUR). This does not come as a surprise since this area also functions as an agglomeration for Budapest, according to the real estate expert.

Feauted photo illustration by György Varga/MTI