Lawyer's addressLövőház utca 20/A.
1024 Budapest Hungary
Attorney's phone number Tel.: +36 1 316 9233
Law office's fax number Fax.: +36 1 336 0107
Attorney's office e-mail info@drlittner.hu

Property and mortgage market data

napi.hu, 18.01 – More than a third of Budapest clients signed contracts for over HUF 20 million last year. Between September and December, for example, their share was 42%, which reflects an increase of 10 percentage points in 2021. The number of applications in this value range has increased steadily from quarter to quarter, to a lesser extent in the East and to a greater extent in the West. However, the HUF 10-15 million category remained the most popular throughout the year in both rural regions.

The majority of customers opted for a 20-year term: while in the country more than half of the applicants (52% and 54% in the East and in the West, respectively) went for this option, its share was 35% in Budapest. The second most popular choice was a term of 25 years, followed by the 10-year alternative. At the end of last year there were almost no mortgage applicants who had signed a mortgage for less than 5 years. The share of loans with fixed interest rates for at least 10 years showed an increasing trend throughout the year, ending at 87% in Budapest, 91% in the East and 80% in the West in 2021.

Property prices to decrease in 2021

Napi.hu, 04.12. – For the next twelve months experts expect to see a residential property price decrease of 3-4% on average in Budapest. With the exception of the green belt of Buda and of detached houses market expectations have changed for the worse, i.e. market players expect that oversupply will increase in the future. In the country, however, the outlook has improved a little. In the Eastern part of the country two of three experts queried expect to see stagnation; the overall forecast promises a 3% price decrease. In the Western part of the country, on the other hand, 72% and 22% of property experts expect stagnating and decreasing prices, respectively. According to the overall prognosis the price decrease will be a mere 2%. As far as property rental fees are concerned 57% of experts say there will be a decrease, 36% expect stagnation and a mere 7% believes rental fees will increase in 2021. The expected decrease (5%) is smaller than  before.

Budapest residential property market may slow down

Napi.hu, 30 July 2018 – In the first half of 2018 there were 6517 apartments built in Hungary, 30 per cent more than in the same period of the previous year. The number of residential units under planning was 18,066, 8.9 per cent less than in the first half of 2017. The number of planning approvals issued in Budapest decreased by 27 per cent. 50-50 per cent of residential properties are still built by private persons and companies, respectively.

54 per cent of apartments created in a new building are located in houses, 36 per cent in condominiums and 6.2 per cent in gated residential communities.

The average floor space of apartments is 101 square metres, an increase of 5 square metres from the previous year. The number of apartments planned reduced by 27 and 3.5 per cent in Budapest and in county centres, respectively, and increased (by 17 per cent) in other towns and cities only.

This is how crime rate affects apartment prices

In theory, there is a strong correlation between the crime rate and the property prices of a neighbourhood: security has a well-defined market value. However, in reality this relationship is not that straightforward: “As ever so often, the devil is in the details”, a property market analyst said. 60-70 per cent of the price of an apartment depends on the property’s physical parameters and the rest comes from the quality of the neighbourhood and the quantity and quality of services available locally. Crime and security have a strong influence, but we must also consider what type of crimes the statistics mention.

For example, although according to data published at www.police.hu the crime rate per 1000 inhabitants is the highest in downtown Budapest, apartments here are still some of the most expensive ones in the Hungarian capital: the average offering price of HUF 515 thousand in 2014 increased to HUF 862 thousand by 2016. The districts most severely hit by burglaries are the central ones in Buda (with the exception of District I.), and although the number of reported cases sank by 30-50 per cent in all of them, burglaries are still very frequent compared to the number of inhabitants.