The agglomeration has become more expensive again – This is how much houses around the capital now cost

In the year 2023, economic difficulties and high loan interest rates reduced the desire to buy real estate nationally, which was also felt in the popular Budapest agglomeration. According to Duna House’s 2022 sales data, real estate market turnover in the settlements around Budapest decreased by 18% last year.

The decrease in demand also had an impact on the price level of real estate in the settlements of the agglomeration ring surrounding the capital, because taking into account the data of the real estate sold in all the agglomeration sectors, only a 3% price increase occurred in the average price per square meter. Last year, at an average price of HUF 594,000 per square meter, the average cost of buying a home with a floor area of ​​101 square meters was HUF 59.8 million, he said. Károly Benedikt, head of PR and analysis at Duna House.

Rising square meter prices

Examining the average square meter prices of the six agglomeration sectors located in the catchment area of ​​Budapest separately, the order changed during 2023 compared to the previous year. While in 2022 it was the most expensive to buy real estate in the northwestern sector, in 2023 the settlements of the western sector took over the leading role. In this area, after a 6% price increase, one square meter cost HUF 690,000, while the most favorable price was HUF 508,000/m² price, the southeast sector awaited the settlers, where a 104 square meter home could be purchased for almost HUF 53 million. The average cost of building a home in the western sector was HUF 73.5 million, and the average property size was 107 square meters, but even more was paid by those moving to the eastern sector, who chose properties with an average floor area of ​​112 square meters, for which the average price per square meter was HUF 654 thousand, or 73.6 million forints were paid.

The northwest shows a minimal decrease (648 thousand HUF/m²) and the northern sector (532 thousand HUF/m²) square meter prices, and the most significant price increase of 10% was seen in the southern sector of the agglomeration area, which has been the most sought after for years, where the average price per square meter increased to HUF 586,000. The amount spent on property purchase was HUF 52.4 million, the average property size was 90 square meters. The proportion of properties sold in the southern sector accounted for 34% of all agglomeration real estate transactions mediated by Duna House, the second most popular with 22% was the southeastern sector, which offers affordable prices per square meter.

2024 brought a trend reversal

However, the year 2024 also brought a change in trends in the agglomeration, where, based on the data of the first three months of this year, more than a third of all last year’s agglomeration transactions were completed during the quarter. Regardless, it can be stated that the very strong wave of emigration experienced during the epidemic period has stopped and a state of equilibrium has developed in the areas around the capital. This is less true for prices, which have returned to an increasing trend along with demand, the expert added. According to the real estate agent’s first quarter data

in terms of the entire metropolitan agglomeration ring, the purchase of real estate costs an average of HUF 10 million more than last year, so this amount almost reaches HUF 70 million,

which means an average price per square meter of HUF 640,000 for a spacious home with nearly 110 square meters of living space.

As in the previous year, those who prefer the western sector have to reckon with the highest average of HUF 824,000 per square meter when buying real estate, here the prices have increased by 19% compared to last year. A significant increase of 12% can also be seen in the southeast sector, where the current price level is HUF 569,000/m². The square meter price also jumped by 10% in the northwest sector, where, thanks to this, the current average square meter price is HUF 715,000/m². The data show a slight increase of 2% for the popular south (600 thousand HUF/m²) and in the northern sector, which offers the lowest prices this year (544 thousand HUF/m²) also. At the same time, prices are stagnating in the eastern agglomeration area, where you can still buy real estate at a unit price of HUF 653,000.

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