In the past decade, many people have moved to Lake Velence, close to Budapest, and to settlements near Lake Balaton in western Hungary.Continue reading
Panel apartments have been the winners of the last decade in the housing market. The reason for the popularity of this type of property is that they are around 20 percent cheaper than brick-built apartments, according to an analysis by real estate website Ingatlan.com.
The analysis compares the latest average prices per square meter for prefabricated and brick apartments in the capital and 18 other cities in the country. According to their data, at the beginning of June, the average price of panels in the capital was HUF 789,000 forints (EUR 2,100) per square meter, compared to HUF 1.02 million (EUR 2,720) for brick apartments, resulting in a difference of 25 percent.
In the two Budapest districts with the largest number of panels, Districts III and XI, the average price of panels at HUF 823,000 (EUR 2,195) and HUF 910,000 (EUR 2,425) represents a 28 and 12 percent advantage over brick apartments, respectively. Meanwhile, a similar trend can also be observed in rural cities.
The analysis by Ingatlan.com highlighted that 25 percent of Budapest residents and 24 percent of people in large rural cities live in panel flats, about 1.1 million people. László Balogh, chief economist at Ingatlan.com, said that
panel flats have become popular among single people living in the capital, and this is due to the rising cost of housing.
According to the floor plan database of the real estate website, the smallest panel apartment in the capital currently is a 20-square-meter property in District III. At the other extreme is a 123 square meter, two-story panel apartment in District IV.
Regarding property news, experts at Duna House, another real estate company, have warned that rents could rise further, especially in Budapest.
This is because the rental market is about to enter its peak season, after the university entrance points are announced in mid-July and students start looking for places to rent.
The steady increase in demand could lead to a further rise in already high fees, with an average price of HUF 200,000 (EUR 530) for rent currently in Budapest. For comparison, the average net salary in Hungary is HUF 366,400 (EUR 977).
Featured photo via Pexels
