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Vast differences in property prices across Budapest’s various districts

 

Changes in Property Supply Price by Districts (Budapest) Between 2014-2015source: Otthontérkép

 
   A growing price trend and huge territorial differences are shown in the statistical figures of “Otthontérkép” (“Housing Map”) property portal summarizing real-estate asking prices between 2014 and 2015. The portal displays over 100,000 individual property ads and analyzing the database reveals that although there was a drastic price increase, this growth trend is not applicable everywhere.  

The head analyst of Otthontérkép says that there is growing optimism and an increasing price trend on the Hungarian property market which is backed by official statistics as well as their own statistical figures. There was a continuing and spectacular price increase during the last year in asking prices, but territorial and qualitative differences still remain significant.

While Budapest and Western Hungary were flying high, the majority of the other regions performed in varying degrees. One of the most important reasons for this is that prices of hard to sell properties, typically larger houses had seen a continuous decrease over the period. Average prices are expected to grow further in popular districts, while less favored parts of the country may even see decreasing prices.

The national price average was roughly HUF 220,000 / msq in July 2015, and it grew to HUF 312,000 / msq by January 2016. During the summer months (July-September) a more intense growth took place, while the autumn was characterized by a quieter price increases. The highest increase rate was measured in December and January, which was probably caused by the government’s new subsidies, which shall be introduced.

 

Changes in Average Supply Property Price Per Square Meter in Hungarysource: Otthontérkép

The most drastic change happened in Budapest, where the average asking price jumped from HUF 323,000 to HUF 403,000 / msq between 2014 and 2015. However this +25% growth rate is not a general trend nation-wide.

Because of large infrastructural and social differences, the country was divided into two parts: there are areas where average offer prices were well over the 2014 levels, and there are regions where the offer prices of apartments and houses stagnated or even decreased by up to - 21 percent.

 

Changes in Property Supply Price by Districts (Budapest) Between 2014-2015
source: Otthontérkép


Price changes were most spectacular in the central districts of Budapest (District V, I, VI.), where property prices went up by 35 % between 2014 and 2015. This is how a totally unprecedented average rate of 730,000 / msq is the current asking price of newly built properties in District V.

The most realistic prices are reflected in the popular Districts (II., III., VII., XI., XII., XIII.) of Budapest, as the scale of offered properties are far more diversified here.  An increase of +23 percent between 2014 and 2015 is not overall applicable: while in District VII, the increase was +43 %, it was only +11% in District III.

Other more central Districts of Budapest  (IV., VIII., IX., XIV., XVI.) have seen a less intense price increase, but these was still a massive +20 percent in one year between 2014 and 2015. Asking prices in District VIII.  grew by +37 percent, in District  IX. by +30 percent and in District XIV. by some +12 percent.

The average increase amounted to just 8% in the outskirts (Districts X., XV., XVII., XVIII., XIX., XX., XXI., XXII., XXIII.) since 2014, for example in District XX. the increase amounted to +15 percent, in District XVII. +5 percent, and as low as +4 % in District  XXII.

The increasing trend does not seem to stop here. A strong correction and diversifying effect may appear in the changing rates of asking prices. For example as a result of new developments appearing due to government subsidies the increasing new property prices may influence the average prices in certain area, while qualitative changes may also have an effect on average property prices.

 

Read more at Napi.hu

 

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