Real estate market

Hungarian real estate market is still under development and is in constant motion.

Trends show that this country will soon reach the level of Western European markets in every respect: price, quality, type of housing, financial resources and mortgage conditions.

As a result of massive foreign investment, as well as funds received from the EU, the construction sector in Hungary is growing at a considerable pace.

Regarding building sites, the price depends on the size and location, as well as on the segment of the population to which it is intended and  the public  services it counts with.

  • Transfer tax from 2% to 10%
  • Building permit/apartments: 40, - €
  • Average price of buildable land in Budapest: between 150 - and 350 € / m2 but can reach as much as 700, - € / m2 in a prestigious district.
  • Average cost of construction in Budapest: 600, - € / m2
  • The cost to renovate a protected heritage building, can reach as much as 1,000, - € / m2.

Distribution by level of property:

  • 50% live in old or socialist homes less than 60 m2 and  with minimum services inherited from the old system.
  • 30% live in renovated homes, between 60 and 90 m2.
  • 20% live in new or rehabilitated homes but still not consisting more than two bedrooms, a bathroom and a kitchen combined with the living-room.

All this is hard to explain without understanding what was the distribution of housing before and after 1945, nearly up to 1990.

It is evident and justified, that as purchasing power gets stronger, more and more people make economic progress and expect  offers for more decent housing.

Relating to this, we can distribute the demand into the following segments:

  • 10%, the upper class, seeking housing and can buy it
  • 40%, the middle class, who wants change  or feels the need of it but mostly cannot get access to because of the problem  of not being to sell its actual home to the lower class.
  • 50%, the lower class, in poor rental situation that requires political measures and financing to be able to purchase a home.

In Budapest the estimated number of homes demanded in the first segment is approximately 4,000

The number of homes demanded in the second segment is approximately 20,000.

And the number of homes necessary to fulfill the demand of the third segment is approximately 70,000


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