Property Transactions Plunge in Budapest as Prices Stagnate

The property market in Budapest has hit the brakes and the 9,941 transactions recorded in the first half of the year represent a significant 46% drop from the same period a year earlier, according to the weekly analysis published by Ingatlan.com. The average price per square meter of used properties in the Hungarian capital was HUF 720,000 in October, essentially stagnating compared to the previous months of 2019 but still showing an year-on-year increase of 18%. In cities like Debrecen and Győr prices continued to rise. Property market analysts blame the drop in transaction numbers on lower demand. The government’s launch of a retail bond carrying high yield is the main reason behind declining demand. In the July-September period, demand has dropped by a third in Budapest. Prices are not expected to decline in the short term, the latest data indicate that used property prices in Budapest have peaked, according to the analysis. Although recent data indicates that used property prices in Budapest have peaked, prices are not expected to decline in the short term, according to the analysis.