Hungarian residential property market takes off, transactions up 40% yr/yr in H1
The first half of 2024 saw the much-anticipated housing market recovery, with a significant upturn in residential property purchases thanks to renewed home purchase subsidies, a favourable interest rate environment and an improving economic situation.
Real estate brokerage Duna House estimates that 61,646 dwellings changes hands in the first half of the year, which marks a 40% jump after a 40% plummet in H1 last year, said Károly Benedikt, head of Marketing & PR and chief analyst at Duna House.
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Along with the recovery in demand, DH's national sales data show that the average amount spent on property purchases in Hungary increased by 12% to HUF 44.5 million compared to the first half of 2023, while prices per square metre changed by the same amount, with the average expenditure per square metre reaching HUF 562,000 in the first half of this year.
Despite the fact that nearly one third (29%) of domestic residential property transactions take place in the capital, the real estate brokerage data for the area show a price increase of only 4%.
According to the sales data for January-June 2024, the amount spent on home purchases in Budapest was close to HUF 59 million, while the average price per square metre reached HUF 908,000, also up 4%, which is just double the HUF 453,000 level in rural areas. In rural areas, the average amount spent on house purchases this year was HUF 38.5 million.
The records
In the first six months of 2024, the cost per square metre of home purchase was in an extremely wide range between HUF 22,000 and HUF 2.6 million. The minimum price for a house (in need of renovation) in Szabolcs-Szatmár-Bereg county was HUF 2 million, and the highest priced property was a newly built luxury villa in the capital's 2nd district, which sold for HUF 1.15 billion.
Nationally, 43% of the sales concluded with Duna House were for detached houses, 37% for brick-built apartments and 13% of the clients bought apartments in blocks of flats.
Most expensive vs. the cheapest
The highest priced apartment in the capital was a 73-square-metre property in excellent condition, located in the 3rd district, which sold for HUF 68 million or HUF 931,000 per square metre. In the countryside, a very good condition apartment in a residential area in Gödöllő sold for HUF 62.3 million and was the best seller, at HUF 1 million per square metre.
In terms of price per square metre, a 46-sqm apartment in good condition in Zugló (Budapest's 14th district) leads the ranking, for which the buyer paid HUF 1.1 million per sqm, while in the countryside the aforementioned Gödöllő apartment fetched the highest price per sqm.
For a flat in a tower block, the lowest price per square metre was paid for a 28-square-metre, well-maintained apartment in Salgótarján, which sold for HUF 214,000/sqm, while in the capital the new owner had to pay more than double that for the best-priced apartment in a tower block, HUF 500,000 per square metre.
Homebuyers preferring brick-built apartments in the capital contracted for property values between HUF 7 million and HUF 750 million, with prices per square metre ranging between HUF 350,000 and HUF 2.6 million in the first half of 2024. In rural areas, the amount spent on property ranged from HUF 6 million to HUF 190 million, with a range of HUF 113,000 to HU 1.9 million per square metre.
Largest vs. smallest
The largest property sold (747 m2) was a building constructed in 1820 on a 5-hectare (12.35-acre) estate near Szentendre, which was in need of renovation. The buyer paid HUF 280 million for the main building, an annexe and the land, which translates into a price of HUF 322,000 per square metre.
At the other end of the scale, a 12-square-metre mini-apartment took the title of smallest property in the first half of this year. The apartment was in good condition and sold for HUF 15 million, or HUF 1.2 million per square metre.
This year, compared to last year, Duna House's clients are more interested in modern and sustainable new buildings, with 6% of buyers choosing a new property, while only 1% of buyers signed a contract for a house or apartment that will be available for occupation in one or two years at the earliest.
At the same time, homes with a longer history remain in demand, with 9% of all sales involving properties built 100 years ago or more. In the first half of this year, the oldest property was a flat in a listed apartment building built in 1780 in Kőszeg. The 85-square-metre apartment, which is in very good condition, fetched just HUF 39.5 million.
Cover photo: Shutterstock
