The European Parliament found a shocking property price rise in Hungary
Property prices increased in Hungary shockingly in the last eight years, the European Parliament found in an analysis they shared. #europeanparliament #property #realestate #money #propertyprice
The European Parliament shared shocking data about the rise in real estate prices in Hungary and the European Union. They found that the increase rate was brutally high in Hungary compared to the EU, where it averaged “only” 48%. The bad news is that experts believe the property price rise will continue this year in Hungary.
Property prices increased most in Hungary in the EU
According to the European Parliament, “in less than 10 years, between 2015 and 2023, house prices in the EU rose on average by 48%. The biggest increase is marked in Hungary, where prices rose 173%, and the lowest in Finland, with just 5%.” The European Parliament found that the highest year-on-year rise in Hungary was between 2021 and 2022. The increase rate was 46% then. Another almost 20% followed between 2022 and 2023, clearly showing the devastating effects of the skyrocketing inflation on Hungary’s economy and society. You may check out further data on the issue by clicking HERE.
“The main reasons contributing to the rise in prices are higher building costs and mortgage rates, a decrease in construction that limited supply and the rise in the purchase of properties as an investment to generate additional income”, they wrote.
Hungarians leave their parental home above 27
Another interesting fact they shared was the average age when people leave their parental home. The EU average age is 26.3, but that also varies significantly between EU countries, from 21.4 years in Finland to 31.8 years in Croatia. In Hungary, it is 27.1.
Foreigners buy property in Budapest and the Western counties
According to 24.hu, the number of foreign nationals buying Hungarian real estate is low. Based on the analysis of Otthon Centrum, the Chinese buy property only in Budapest’s downtown, while the Germans focus on Somogy County and the Western counties of Hungary.
Foreigners spend more money on property. The average property price they pay is HUF 51.1 million (EUR 123,000), while Hungarians spend HUF 2 million less. 92% of the foreigners buy property in Budapest and the Western counties of Hungary (Vas, Somogy, Győr-Moson-Sopron, Zala). The highest number of transactions concerning property took place in Budapest’s 8th district, where Americans, Western European and Ukrainian citizens were the most active.
Based on experts, property prices will continue to rise in Hungary in 2025 due to several government measures aiming to pump more money into the sector. Here you may read more about them.
Read also:
- Good news: 2025 will be a better year in Hungary’s property market, says Duna House
- Budapest’s housing crisis in focus: What about the worsening situation in Debrecen?
Featured image: depositphotos.com
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