Prices of real estate transactions are rising in Budapest
August 18th, 2015
July turned out to be the strongest month of the year: the last month this many transactions took place on the real estate market was January 2012. Many people are present on the market with the intention of investing.
July is the fourth month this year when more than 12 000 transactions took place. Last year the trend was already getting stronger but the number of transactions reached only 9200 – which indicate a strong 34% year-on-year growth.
The fresh data is very promising considering that demand is on the low thanks to the summer seasonality, but is still higher than any time last year.
The average price per square meter was 135 thousand Forints in Eastern Hungary and 147 thousand in the Western region. The same type of flats were sold at a much higher rate in the capital – the average 254 thousand in Pest and 283 thousand in Buda.
The differences are spectacular if we have a look at the prices of brick-built apartments: while average price per square meter was 153 thousand in the East, in inner Pest it was 439 thousand.
Buyers were able to negotiate 4% from the prices on average. Sellers had to lower the most in the capital where transaction prices were 7% lower than advertised prices.
There are still a large number of people who are buying with investment purposes – in July 30% of all buyers were investors.
In the countryside the number of cheaper estates decreased compared to last year while more expensive estates – especially those above 400 thousand Forints per square meter – greatly increased, from 11% to 36%.
(Source: http://www.resourceinfo.hu/hu/cikk/lakas/37806.html)
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