Hungarian real estate market has come to turning point

The housing market works in a cyclic way. The increase started in 2013, this is the sixth year of growth. Current real estate prices are well over the balanced level, but this does not necessarily mean they will drop anytime soon. Considering the current demand, the best-case scenario is stagnancy. The government’s family protection plan also generates early demand for properties, stalling the fallback of demand even further – says portfolio.hu, an economic news site.

According to an analysis of OTP mortgage bank, property prices have shown an increase of 14.2% in the first three quarters of 2019. “Apartment prices in residential areas have increased by 21%. This means that their value escalated at a higher rate compared to other properties, for instance, individual houses with their roughly 7% growth in a year. Nowadays the price of apartments sold in residential areas is more than 326 000 forints per square meter” – said Dávid Valkó, lead real estate market analyst of OTP mortgage bank.

The capital’s most expensive area is still district V. with an average price of 944 000 forints per square meter. District I. comes second with a roughly 150 000 forints lower price. Districts II., VI., and XII. are also above 700 000.

Reference: Portfolio.hu