Over the past decade, real estate prices in Hungary have increased significantly. The increase in the cost of living over the years is a natural phenomenon that occurs in all countries. However, in some cases, price increases can reach 100% in just ten years. This is exactly what happened in Hungary.
When in 2004 Hungary joined the European Union, it was obvious that prices should follow the EU level and someday reach it. In particular, the cost of real estate on Lake Balaton has reached this level, and sometimes already exceeds the cost of properties on the Adriatic Sea. The prices for renting real estate on the largest lake in central Europe are still slightly behind the cost of renting at sea.
Source: eurostat – ec.europa.eu
Recently, the statistical service of the European Union, Eurostat, published fresh data on the cost of buying and renting real estate in the EU. Although Hungary is not at the top of the list, it is in the first positions. If you look at the dynamics over the past 10 years, the Hungarian real estate market has experienced tremendous growth. For the period 2010 — 1st quarter of 2021 the cost of buying a home has increased by 2 times (reaching almost 100% growth).
If we consider the entire EU, this figure is quite impressive. Only two countries, Estonia (126.8%) and Luxembourg (108.2%), showed even higher growth if we consider only housing prices. Six months ago, Hungary occupied the second position, but due to a period of stagnation in the country and a significant increase in real estate prices in Luxembourg has lost its position.
The increase in rental prices was less significant and amounted to almost 43%. In practice, this means that the apartment currently offered for rent at a price of 343 euros cost 240 euros 10 years ago.
Source: eurostat – ec.europa.eu
If we consider the dynamics of purchase and rental prices, then until the second quarter of 2011. They followed a very similar path in all EU countries. From mid-2011, purchase prices showed fluctuations until mid-2015, after which they began to grow at a relatively rapid pace. Since then, the growth rate of real estate purchase prices has outpaced the growth rate of rental prices, which has demonstrated steady and continuous growth since 2010.
Compared to the 4th quarter of 2020, prices in both cases show continued growth: the cost of rent — by 0.4%, purchases — by 2.2%.
If we look at the overall picture for the EU over the past 10 years, the average rental price has increased by 15.3%, and the purchase of real estate by 30.9%. Price increases are observed in 23 EU countries, but in 4 states their decrease is recorded. Greece and Cyprus recorded a drop in both the cost of buying and renting real estate. Spain and Italy can please potential home buyers by reducing prices by 4.8% and 14.4%, respectively.
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