New Residential Constructions Are Up Again in Hungary
November 17th, 2016
In the Hungarian property market 155,000 sales contracts are expected to be signed in 2016, among which 45,000 contracts are from Budapest. 10,000 new flats have been sold this year and 5,000 from the capital. The most popular investment spots for real estate investments are districts 13 and 11.
Sales of new homes
Newly released data shows 10,000 new apartments have been built and the half of that was carried out in the capital this year.
The sales of these new built apartments can be attributed to entrepreneurial constructions, therefore, to the effect of new constructions an increase is foreseen in the average number of new apartments in the capital as well as in main towns. At the moment there are 370 constructions under process in the country.
New homes in the capital
There are currently more than 270 investments under way in Budapest in the housing market, among which almost 17,000 apartments are being built and 40 % of them awaits buyers. In the centres of the countryside there are 62 projects with a total of 1,660 apartments under construction. In other county towns there are 1,500 new apartments advertised. In Buda side of the capital the average number of flats per project is 35, in Pest side this number is 62 and in the countryside there are 30 apartments in a home building project.
In the capital the most new apartments can be found in district 13, where there have been more than 50 investments - being almost the one third of the residential apartment projects in Budapest – are in different phases of implementation. The number of investments is also outstanding in district 11 and 14, providing the 15% and 12 % of the residential construction investments in the capital. There have been significant constructions in the inner districts, in the downtown of Budapest and in some other districts of Buda.
Here are the most expensive newly built apartments: 1.4 million HUF/sqm!
According to analyst expert Gábor Soóki-Tóth in these new projects the average sqm price of these new apartments is 630,000 HUF.
Districts 5 and 12 can be characterised by the highest transaction prices, where the average price exceeds 1 million HUF/sqm, while the lowest prices can occur in the outer districts of Pest, with 400,000 HUF/sqm. The most expensive flat costs 1,400000 HUF/sqm and the cheapest one is 300,000 HUF/sqm.
Fewer apartments and lower prices in the countryside
There are one hundred residential constructions in the countryside, which have appeared on online advertisement sites. There are 3 thousand apartments in these projects, which is only a fraction of the projects in the capital; both the number of the apartments and the transaction prices are much lower: on average 340,000 HUF/sqm. The most expensive town is Sopron, where the new built apartments cost 500,000 HUF/sqm. The cheapest new apartments can be found in Nagykanizsa, where one can be a new apartment for 235,000 HUF/sqm.