A few month ago, we reported a selling price of 1,1 million HUF/m2 in the newly built apartment market in Budapest, but now this average price has already risen to 1,2 million HUF/m2, according to the latest survey of Eltinga’s Budapest real estate market report. The average price level of the newly built apartment continued to rise, and the average price of newly built apartment in Budapest was more than 84 million forints. Three month ago, it was only 76 million HUF.
Current survey currently includes 21,405 apartments. These apartments found in constructions where t least one apartment was offered for sale in the fall of 2021 or the winter of 2022. Due to high demand and inflexible supply over the past six months, the number of advertised new apartments and projects has fallen by three quarters.
The prices of newly built apartments in Budapest are rising at an accelerating pace, currently the average offering price is 1,2 million HUF/m2, which is 9.2% higher than a quarter earlier. At the price level, the increase was even higher, the average price of a newly built apartment now exceeds 84 million forints in the capital. The price increase was above average in 3rd, 4th and 10th districts.
Compared to the average prices per square meter in February of last year, there was a 24% price increase in Budapest in one year.
Between November 2021 and February 2022, developers sold nearly 2,500 homes, the same as the record- high adjusted value for the previous quarter. Last year about 8,600 newly built flats have been purchased in Budapest., which is also a record value for the past 6 years. The newly built apartment’s market in Budapest entered its boom again in 2021, but it is questionable how the rising inflation, rising interest rates, the war in Ukraine in the short term, and the family support system and return of 27% VAT in the longer term will affect the market.
Strong demand, meanwhile, is met with an inflexible supply, the number of available flats is steadily decreasing, currently not reaching even 5,000 units in Budapest. Sales of just four projects with at least a hundred apartments have begun: developers like Biggeorge Propety, Living, Property Market have launched a new phase in their existing developments nd Bayer Property has launched a completely new project (Balance Garden). It is characteristic of the developers’ caution that with the exception of Balance Garden, only part of the apartments have started to be sold in the above mentioned projects, others can only be purchased at a later date.
source: portfolio
