PROperty Market News

2024-12-02

Why is it worth buying a new apartment this year? The expert answers!

https://index.hu/bcs/2024/12/02/lakasvasarlas--ingatlanbefektetes-december-szakerto-living/

The lengthy negotiations, stagnant apartment prices, and sluggish property sales have come to an end: recent data clearly shows that the real estate market has emerged from its previous standstill and has started to pick up again. According to analyses, property prices may continue to rise in 2025, so it is worth acting now, whether you are buying a property for residential or investment purposes. But is it really worth investing in real estate? And if so, what types of discounts should be taken advantage of? We analyzed the situation of the Budapest housing market with an expert.

In just over a month, the real estate market has recovered from its "winter" slumber. After the low point experienced in 2023, real estate players report an unprecedented revival, with both demand and supply increasing significantly.

The figures show that the market recovery started early in the year. According to data from the Hungarian Central Statistical Office (KSH), in the first quarter of 2024, property sales in Budapest increased by 55% compared to the previous year (while only 16% in rural areas), and in the second quarter, the growth in the capital was 38%. In the first half of 2024, the average price of a new apartment in Budapest was already 79 million HUF, 7.9 million more than in 2023.

Real estate portal ingatlan.com also reported significant price increases, with their statistics showing that at the beginning of November, the average price per square meter of apartments in Budapest nearly reached 1.1 million HUF, with prices in eleven districts already higher than that. (One year ago, the average price per square meter in Budapest was still below 1 million HUF.) The demand for both new and renovatable properties has also increased significantly.

"Customers are afraid that apartments will be more expensive next year.

Matolcsy György's team: Housing price increases are not over

https://index.hu/gazdasag/2024/11/22/mnb-jegybank-ingatlanpiac-ingatlan-lakaspiac-lakasarak-lakaspiaci-jelentes/ 

Real Estate
By Gábor Kaszás, November 22, 2024, 3:09 PM

Early Loan Repayments Surge – Do Hungarians Have Enough Savings?

The Hungarian National Bank (MNB) reports that housing price increases will likely continue, outpacing the EU average. Factors like home creation subsidies, favorable loan conditions, and household savings in government bonds are boosting the housing market.

In 2024, rising employment and wages, alongside decreasing inflation, helped drive consumer confidence and housing demand. The MNB forecasts demand will rise further as savings enter the housing market.

State Housing Support at a Low – Not Helping the Needy

Prices Above EU Average
In Q3 2024, housing activity increased 16% nationwide and 31% in Budapest, with 144,000 transactions, 10% below the long-term average. Price increases continued in Q2, with 9.3% growth in Budapest and 8.7% in other cities.

MNB expects housing prices to keep rising in Q4, with a 14.7% increase in Budapest.

Housing Market Poised for Growth – Awaiting Government Action
Prices are rising and could surge next year.

New Housing Support Soon
Under-35s can access nearly 2 million HUF. Price increases could reach 11.4% in 2024.

CSOK Plus Grows, But Fewer Beneficiaries
Housing loan demand surged by 148% in 2024, driven by CSOK Plus. The number of eligible beneficiaries will decrease by a third in 2024.

Weak Housing Construction
In 2024, 8,600 new homes received occupancy permits, down 20%. Housing construction is expected to remain slow into 2025.

Savings May Flood the Market
The central bank expects significant savings to enter the housing market in 2025. Voluntary pension savings will be tax-free for housing purchases, with around 300 billion HUF expected to flow into the market.

How much does it cost to buy a house in the Budapest metropolitan area now?

portfolio.hu
https://www.portfolio.hu/ingatlan/20241121/mennyiert-vehetunk-most-hazat-a-fovarosi-agglomeracioban-724658 

2024. november 21. 13:19

Demand for real estate in the Budapest metropolitan area has increased, with 6% more properties changing hands compared to 2022 and 26% more than in 2023. Average square meter prices in the entire agglomeration rose by 10%, reaching 650,000 HUF. The southern agglomeration was the most popular among Duna House clients. Buyers in the agglomeration closed deals for properties ranging from 12 million to 440 million HUF.

The property market in Budapest's surrounding area has seen more transactions in 2024, influenced by factors like cleaner air and more spacious living conditions. These factors, combined with home purchase subsidies and favorable loan rates, have contributed to the rising demand, said Ferenc Máté, Deputy CEO of Duna House.

Although the previous strong migration trend has slowed, the number of transactions from January to October 2024 surpassed 2022 by 6% and 2023 by 26%, according to Duna House data.

In response to the growing demand, the average price per square meter in the agglomeration rose to 650,000 HUF, a 10% increase, while the average price of properties jumped from 59.5 million HUF to 70.2 million HUF.

The northern sector saw nearly a 20% increase in average square meter prices, reaching 600,000 HUF, while the southern and southeastern sectors saw price hikes of 10-12%. In contrast, buyers in the eastern sector paid 6% less, averaging 613,000 HUF per square meter.

In 2024, the western sector remains the most expensive, with an average price of 739,000 HUF per square meter, up 7% from 2023. However, the northwest sector continues to lead in property value, with average prices rising from 74.3 million HUF to 91.1 million HUF. For buyers seeking more affordable options, the southeastern sector offers a lower cost, with prices at 560,000 HUF per square meter.

The most expensive property was sold in the northwest sector for 2.1 million HUF per square meter, while the least expensive was in the western sector at 169,000 HUF per square meter.

Among Duna House clients, the southern sector was the most sought-after, with 28% of buyers choosing it. The southeastern sector attracted 20%, while 15% chose the western, and 14% each opted for the northern and northwest sectors. The remaining 9% bought in the eastern sector.


Real Estate Prices Have Completely Flipped, the Country's Most Expensive Street is No Longer in Budapest

Gyula Szabó
November 20, 2024, 15:10
Index.hu
https://index.hu/gazdasag/2024/11/20/ingatlan-ingatlanpiac-balaton-budapest/

Last year, the most expensive street in Hungary was the Aranyhíd Promenade in Balatonfüred, with an average price of 2.64 million forints per square meter. However, in 2024, Türbe Square in Budapest's II. district leads with nearly 3.8 million forints per square meter. This marks a shift, as Budapest has lost its long-standing position at the top. Last year’s second place was Kossuth Square with 2.54 million forints, and third was Ruthén Street in Buda with 2.37 million forints. The price difference between the most expensive and cheapest streets grew from 115 times last year to 236 times this year.

Outside of Budapest, the Balaton region now dominates, with streets in Balatonfüred, Tihany, Balatonfenyves, and Balatonkenese showing square meter prices ranging from 2.2 to 2.8 million forints.

In the capital, Türbe Square leads, followed by Petőfi Square near the Erzsébet Bridge at 3.7 million forints per square meter, and Arató Street in Buda at 3.68 million forints. Other top locations include Széchenyi Promenade and Március 15 Square in Pest, and streets like Napraforgó and Ferenchegyi in Buda.

Cheaper streets in Budapest include Orgoványi Street, Karánsebes Street, and Szepes Street, with prices ranging from 220,000 to 291,000 forints per square meter. Balogh László, the lead economist at ingatlan.com, noted that the price gap between Buda and Pest is widening, with Buda now having higher real estate prices.

Balaton streets dominate in the national rankings, with Itató Köz in Tihany at the top at 2.8 million forints per square meter. Other expensive streets include Széchenyi Street in Balatonfüred and Kikötő Street in Balatonkenese.

Severe Price Increases in the Real Estate Market, Hundreds of Thousands of Apartments Are Empty

November 8, 2024

index.hu
https://index.hu/gazdasag/2024/11/08/gki-budapest-lakas-ingatlan-lakaspiac-dragulas/

Last year, an average earner in Budapest would need about 17 years’ worth of salary to buy a new apartment, with further price increases expected. One reason for the rise is that many people buy properties as investments, and approximately 160,000 apartments in Budapest remain vacant. Experts have discussed potential solutions.

According to the latest analysis by GKI, in 2023, a 60-square-meter used apartment in Budapest could be bought with 140 months of income, and a new one with 200 months. Compared to 2010, apartment prices have increased 3.6 times for new apartments and 3.5 times for used ones.

GKI CEO László Molnár believes that government housing programs, such as the "CSOK" and "Babaváró" loans, have driven the sharp price increase. He suggests that state-funded housing construction could be a solution to the housing crisis, with the state directly building properties to keep prices down.

He also mentioned that across the country, around 572,000 homes are empty, with 160,000 in Budapest, most of which need renovation.

Real estate expert Zoltán Leskó emphasized the importance of rural development. He argued that without infrastructure, even affordable housing in rural areas would not attract people due to the lack of job opportunities.

Next year, prices are expected to continue rising, fueled by investment purchases. László Balogh from ingatlan.com warned that challenges in the real estate market could worsen. He pointed out that significant funds are tied up in inflation-linked government bonds, which could redirect demand into the housing market, leading to further price increases. Balogh stressed that increasing incomes and expanding the housing supply would help address the issue and slow price growth.


Nagy Márton Signals over 100 Billion HUF in Motion for Housing Crisis

index.hu
https://index.hu/gazdasag/2024/10/31/nagy-marton-kormany-ingatlan-ingatlanpiac-ngm/ 

2024.10.31. 11:52

Nagy Márton, Hungary’s Minister for National Economy, met with key figures in the real estate sector to discuss measures addressing the housing crisis. Among the proposals, measures were suggested that could mobilize over 100 billion HUF.

The meeting aimed to discuss solutions for Hungary's housing crisis, with a focus on affordable housing. As part of the new Economic Policy Action Plan, the government proposed ten key actions to address housing challenges.

A key development was the tightening of Airbnb regulations in Budapest, with efforts to extend the improvements nationwide, including rural home renovation programs and using voluntary pension savings for housing purposes.

One proposal discussed creating a state program allowing domestic real estate funds to access 20-30 billion HUF each, totaling over 100 billion HUF, to develop affordable housing, rental apartments, and dormitories. The government is exploring how state-backed funds could support such initiatives.

Additionally, it was suggested to reduce the 27% VAT on rental housing and dormitories to 5% if businesses lease to private individuals. These measures are expected to boost both the construction and real estate sectors, contributing to a projected 3% economic growth in 2025.