Housing Market: Unprecedented Momentum in May

The real estate market experienced a long-unprecedented momentum in May, with investment in the capital and moving to larger properties in rural areas motivating buyers, while nationwide, demand was focused on good condition apartments, real estate brokerage firm Duna House said on Monday.

According to its estimates based on the company’s own data, 10,187 sales were made nationwide last month. The May boost was 31% better than this year's strongest month, March, and 50% better than the usually weaker April.

On the Buda side of the capital, homes between 20-40 and 60-80 square meters accounted for 27% each of the properties sold through Duna House. On the Pest side, properties between 40 and 60 square meters were the best sellers. In terms of unit price (HUF/sqm), most homes in Buda sold for between HUF 900,000 and HUF 1 million and between HUF 1.2 million and 1.4 million, while in Pest most homes sold for between HUF 600,000 and 800,000. 

In May, buyers were more likely to buy properties with a floor area of between 40 and 60 square meters nationwide (with the exception of Central Hungary) and between 60 and 80 square meters in Pest County. The majority of homes sold in Hungary were below HUF 250,000 per square meter, while in Pest County, the average price was above HUF 600,000 per square meter.

In the eastern and western parts of the country, the average price per square meter of prefabricated apartments rose by HUF 10,000 and HUF 5,000 year-on-year to HUF 468,000 and HUF 495,000 respectively in May.

In the eastern part of the country, the average unit price of second-hand brick-built flats increased from HUF 227,000 in May 2022 to HUF 278,000 in May this year, while in the western part of the country, the average unit price increased from HUF 325,000 to HUF 373,000.

In Buda and Pest, the average price per square meter of prefabricated apartments has also decreased, from HUF 835,000 to HUF 810,000, and from HUF 736,000 to HUF 703,000.

In contrast, the average price per square meter of second-hand brick apartments on the Buda and Pest sides of the capital also increased: from HUF 950,000 to over HUF 1.1 million and from HUF 711,000 to HUF 782,000, respectively. In the city center, on the other hand, the unit price of these apartments fell from HUF 950,000 to HUF 895,000.

It was also noted that in May, the focus of demand nationwide was on properties in good condition. In Budapest, in the eastern and western parts of the country, 47%, 43% and 39% of sales were in this category, respectively.

In the capital, investment was the most popular buyer motivation, followed by buying a first home. In the countryside, moving to a larger property was the top reason, followed by investment and buying a first home.