the year 2022 is in reality the first year of restoring economic activities after 2 years of the global pandemic and the resulting lockdown. Hungarian real estate may be the most badly hit sector of the economy, and while the risks still cast their shadows, many predict that as the year passes the prices will regain their pre-pandemic increasing trend.
Studies show that the number of real estate sales exceeded 170000, almost breaking the last 10-year record. The contributing factor behind the increase is the demand and supply forces delayed by the pandemic. Budapest, the country’s capital witnessed a 50% increase whereas the growth in rural areas and villages was recorded at 25-30%.
the fluctuation in property prices varies between type, location, construction, etc. The rate of change in prices of one type may not apply to the other but the overall price index is a collective indicator.
Prices of houses in Hungary
The house prices in Hungary on average witnessed a 15% increase as compared to 2020. Budapest, the country’s capital Budapest is at the center of the price increase. Even within the capital, the eastern part of the city Pest experienced a 22% increase. Whereas the rate of increase in Southern Great Plain, Transdanubia, Northern Great Plain, Central Transdanubia, and Western Transdanubia was recorded at 14.9%, 14.7%, and 14.6%, 12.6%, and 12.1% respectively.
The average price in dollars for a new house in Hungary was recorded at US$ 100,000 at the beginning of 2021, and almost half the price for an old one during the same period. Despite the increase, the demand for new and old houses is increasing as reflected by the sales growth which at 15%.
Local houses’ price variations
The price variation in housing in Hungary is very apparent and significant. For instance, houses in Budapest are the most expensive compared to the rest of the country. The average price of old houses has reached upwards of US$ 100,000. The Transdanubia region also witnesses a price hike in housing as the price for an old house here can cost up to US$ 60,000.
Investors looking for opportunities in the real estate sector found the prices in the North and Great Plain regions where the houses are the cheapest in the country. The average price of a new house in Northern Hungary could cost as low as US$ 30,000 whereas the same accommodation in the Great Plain could cost US$ 35-40,000.
Recuperating demand
The price parity between new and old houses, though always present, was never as significant and major as now. The sales of old houses decreased by 18% in just one year. Investors and residents alike are looking for newer, cheaper options with more luxuries and advanced amenities.
The table below demonstrates the percentage drop in sales in various parts of Hungary:
| Location | Units sold | Percentage drop |
| Central Hungary | 30700 | 28.3% |
| Budapest | 21000 | 25% |
| Pest | 9700 | 36% |
| Great Plain & North | 52000 | 12% |
Investment by foreigners
For the better part of 2020, the pandemic wreaked havoc on the real estate economy of the country. Due to travel restrictions, the sales of new and old houses fell by 80% from the previous year. The houses were mainly bought by foreigners who live in Hungary rather than investors who procure property for investment purposes. A similar decline was seen in rentals; in terms of rental prices as well as new leases.
One study reflected that the Chinese national contributed heavily to the sales figures, almost two third of the net total sales. Citizens from the EU, Germany, Israel, Russia, and Turkey shared 22%, 11%, 4%, and 2% respectively.
Monthly rents on houses in different parts of Hungary
The table below reflects the current average rentals in various parts of the country:
| Area | Type of accommodation | Location | Rent in USD |
| Budapest | 1 bedroom apartment | City center | 440 |
| Budapest | 3 bedrooms apartment | City center | 850 |
| Debrecen | 1 bedroom apartment | City center | 360 |
| Debrecen | 3 bedrooms apartment | City center | 580 |
| Pecs | 1 bedroom apartment | City center | 300 |
| Pecs | 3 bedrooms apartment | City center | 750 |
