The annual increase in apartment prices in Budapest slowed to 9% in May, compared with almost 11% in April. Nationwide, the annual dynamics also decreased from 14.3% to 13%. These data published by Ingatlan confirm analysts' forecasts about the market's imminent transition to a more moderate growth rate.
In six months, the Budapest price index has decreased four times. At the same time, the picture is different in the regions of Hungary: the annual growth in the regions is almost twice as high as in the capital (13-16% versus 9%).
The key reason is the Otthon Start state program with a limit of 1.5 million forints per square meter (about 4,225 euros). In Budapest, where the cost has long been around 1.4 million (approximately 3,944 euros), the ceiling has slowed down growth. In rural areas, on the contrary, low starting prices provoked an acceleration in demand and a rise in prices.
As of June, apartments in new buildings in the capital cost on average about 4,790 euros per square meter (in the secondary market 4,200 euros), the average apartment price is about 287,300 euros and;253,500 euros, respectively.
Source: Hungary Today
.jpeg)