Housing prices have increased by 17% in a year and by 4% on a monthly basis in March in Hungary, according to data from the country's National Statistical Institute. The upward trend has been observed for the 10th consecutive year. Properties in Budapest are increasing in price faster than other regions of the country, but even there the price growth is significant - 10% per year.
The price per square meter on the secondary market in Budapest reached 3,000 EUR. In residential areas - about 2,000 EUR.
The average price for a transaction involving apartments is about 270,000 EUR. More or less cheap options can still be found, for example, in districts XX and XXIII, where they pay an average of EUR 137,000.
Why are apartments in Hungary rising in price so quickly? The golden visa is definitely not the reason for this, since real estate was excluded from the program. The classic shortage is to blame for such a large-scale increase in prices. Falling interest rates on loans and the improving economic situation have brought a real boom to the market. And it is unlikely that the trend will change dramatically in the foreseeable future. The only thing we can expect is that the rate of price increases will slow down.
This summer, Hungarian lawmakers are expected to pass a law that would allow local councils to restrict the right of foreigners to buy housing. Municipalities will also receive additional preferential purchase rights and will be able to provide benefits to Hungarians wishing to return to their regions and tie the deal to residency requirements.
The reason for such a measure is the sharp rise in prices and the popularity of certain areas of the country among foreigners - especially Budapest and its suburbs, as well as Lake Balaton. In addition, newcomers do not live in the houses and apartments they buy themselves, but acquire them for investment purposes, which also exacerbates the housing crisis.
However, it is not only the most famous areas that are popular with visitors. For example, Romania's final entry into Schengen attracted citizens of that country to the market, who began to buy relatively cheap real estate along the southeastern Hungarian border.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE