Over the past four years, prices of flats in panel blocks have increased by 72 percent while houses by 14 percent. This has led to the phenomenon that in certain places of Hungary, panel flat square meter prices are now higher than that of houses, Népszava reported in reference to the Central Statistical Office (KSH).
According to KSH’s Q1 housing market analysis, since 2015, average sqm price of panel flats has more than doubled in Debrecen and Szeged and almost doubled in Miskolc, Pécs and Székesfehérvár.
What is more, panel flat prices in outer Pest districts have also more than doubled over the last four years and doubled in Buda estates.
All this while houses in Buda hills saw an increase of “only” one and a half times, while the rest of the capital saw an average hike of 60-80%.
As a result, in the capital’s 4th, 15th, 18th, 21th, and 23rd districts a house is sold at an average price of 384 thousand forints (€ 1.209) per sqm, while panel flats are sold above 450 thousand forints (€ 1.417) per sqm.
Népszava asked an expert, who noted that the total price of houses, is, of course, still higher. The reason behind the phenomenon is that people, amid the permanent increase in house prices, are looking for cheaper housing options, so they choose the panel flats. But as demand increased, it has resulted in a price increase as well. Another reason is that houses are generally harder to sell, the expert added.