The Features of Today’s Budapest Property Market
July 16th, 2018
At the end of the first quarter of this year, 6800 homes were for sale on the Budapest real estate market, while at the beginning of the same period 9 percent more homes were waiting for customers. The demand side, however, closed a stronger period. In the first three months of the year, it has been the strongest quarter of the last two years, as more than 2500 homes have found their new owners. The increased demand is also shown by the fact that more than a third of the projects announced this year are already sold. See what the latest analysis of Cordia on new homes market shows in Budapest.
Prices per square meter rise
On average, the square meter prices of newly built apartments in Budapest is 730 thousand forints, but there are parts of Budapest where far higher prices can be found. For example, in Buda, the average price per square meter is 784 thousand forints, but in the inner Buda districts, we can find apartments for more than one million forints per square meter.
At the same time, Pest averages 709 thousand forints per square meter, which is also differentiated by city districts. It is still top notch in the 5th district of Budapest, where some apartments have a price of around 2 million forints per square meter. The other ends are the 4th and 10th districts, where the average square meter price is around 600 thousand forints.
Diagram: Cordia, Average square meter prices in March 2018 Budapest, showing the average prices by districts
Different features of the rental market
The monthly rent in Budapest for new suits is 125 thousand forints on average, the two-roomed apartments are 168 thousand forints, and the average monthly rent for three-room suites can exceed 200 thousand forints.
There is also a lot to be said about the location as the highest monthly rental rates for the popular two-bedroom apartments are requested for apartments in Nagykörút and Marina coast. This means an average of 190 thousand forints. Marina Part is a popular part of District 13, but in comparison, in another part of District 13., for example, Angyalföld the average monthly rental fee is only 145 thousand forints. Thus, apartment prices change according to territorial differences.
District 5. is still the most expensive district, where the rent of one-room apartments may even reach the 200 thousand forints monthly amount.
Variable payback times
However, the property market has shown us that the expensive square-meter apartments have slower, but steadier returns through long-term rentals. In these cases, you must be very prescient, as the rental market on the luxury segment is narrower.
In the inner districts of Budapest, the investment return is within four months - projected to square meters (it means that a four-month rental fee covers the price of a square meter of the purchased property). On the even more expensive Marina Part, where tenants have to pay a monthly rent of 190 thousand forints - and the property prices are 890 thousand forints per square meter - the return reaches five months per square meter. On the other hand, the average square meter price of two-roomed apartments in Angyalföld is 620 thousand forints, with a return of 4 months per square meter