Since the bottom of the market in 2013, prices more than doubled in the city. News keep questioning if this booming continues or a fall back in prices is coming. Where is the market going now?

The statistics of Duna House – one of the largest real estate franchise agency – says that the number or property sale transactions dropped slightly in the springtime. Even if there was a little fall back in the amount of transactions, the PRICES INCREASED AGAIN AROUND 10% compared to Q2 2018. An average sqm price on the Buda side is 750,000 HUF (2,344 EUR) now while on the Pest side is 638,000 HUF (1,994 EUR). I have to add that these are average prices, if you seek a nice property in district 5, you can not find anything below 1 million HUF/sqm (3,125 EUR).

Some experts say that the relatively slow market in the springtime was caused by the NEW GOVERNMENT SUPPORT PACKAGE for families which was implemented by the 1st July. Families might have been waiting with their purchase till this date. The first CSOK (Subsidy for home buying families) introduced on the 1st January, 2015 offered subsidized loans only for the purchase of newly-built apartments. From this summer, subsidized loans are available also for resale apartments. Furthermore 10 million HUF (~ 31,000 EUR) interestfree loans are available from now for property purchase also for couples who do not have children yet but they are expecting to have one or more within the next 5 years. Upon the birth of their children, depending on their number, one part or the full outstanding loan amount is released.

However in Budapest the majority of buyers are not subsidized families, 50% OF THE BUYERS ARE INVESTORS. In some areas and new developments this ratio goes up to 70%. Investors seek mainly 1 and 2 bedroom apartments between 40 and 60 sqm. The offer of this size of apartments are so low, that you can sell now such a flat easily even if it has bad light or lay-out. The number of luxury renovated apartments have increased though and its time to sell became longer. The same applies for many other apartments where sellers are not happy with the annual 10% price increase but they put their flats up on the market for sale 20% higher. Unrenovated apartments became also less sought after as finding good workers to renovate is a nightmare now. Workers were either seduced by high salaries of large developers or by the same of foreign countries.

All in all whether it is renovated or not, centrally located or not, PRICES KEEP INCREASING everywhere. The supply of apartments is better by now than last years but it is still low which can mean that most owners do not start yet to sell their flats in the hope of further price increase or it means only that everyone is on holiday and there is summer in the city.