How much will an apartment in Budapest be worth in a year?
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Loading... - Chloe Bernard
- 20 Sep 2022
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Due to the brutal high inflation, rising loan interest rates and drastically increased energy prices, the real estate market will also face adverse changes. Read our article and find out how much an apartment is going to cost in a year!
Portfolio has asked nine real estate experts about market trends regarding prices, supply and demand, housing construction and rents. Here is what they predict for the real estate market in Budapest.
Inflation exceeds price increase
Although apartment prices have risen since the pandemic, the price increase may be smaller in the coming year. According to some experts, an increase of between 0-4 percent is expected until the end of the year, while others predict 2-7 percent until September 2023. On the other hand, in real terms (adjusted to inflation), the value will be negative. This means that, although the numbers are going up due to inflation, the price increase will not be that significant. However, it is worth making a distinction according to the condition of the property. High utility costs will definitely be visible on the price tag of apartments in worse condition. In addition, family houses will be the most affected.
What about apartment rental fees?
As Pénzcentrum writes, the increase in apartment rental fees surpassed experts’ predictions. Compared to the low point during the pandemic, the increase was more than 30 percent. However, owners must pay attention to the energy efficiency of the apartment. In the case of apartments where the electricity or gas consumption exceeds the utility reduction limit, demand can drop significantly. On average, in Budapest, the majority expect a significant slowdown in the increase in rents. Read More...
