Hungary Tops List of House Price Increases in Europe

Over the past seven years, Hungary has seen the largest increase in house prices among EU countries, according to data published by Eurostat.

In the first quarter of this year, the price of new dwellings rose by 19% year-on-year, while the price of second-hand dwellings increased by 20%, with prices up by 7.3 and 4.8% respectively compared to the previous quarter, according to the housing price index of the Hungarian Central Statistical Office (KSH) for the first quarter. The highest increase was in Veszprém with 26%.

In Budapest, the square meter price of new dwellings crossed the EUR 1 million psychological barrier. According to KSH's quarterly housing market report, the most expensive districts in the first quarter of 2022 were the mountainous districts of the capital. The average price here rose to HUF 72.9 million from HUF 66 million a year earlier. The average price per square meter exceeded HUF one million for the first time in the country.

The price per square meter of second-hand housing rose from HUF 334,000 to 362,000. In Budapest, the average price of second-hand housing rose from HUF 687,000 to HUF 766,000 per square meter per year.

In the Lake Balaton agglomeration, the price of second-hand dwellings rose from HUF 41.8 million to HUF 46.2 million in 2021. The square meter price exceeded HUF 580,000.

The number of transactions on the housing market temporarily decreased in 2020 (134,000), but in 2021, according to preliminary data, it approached the pre-epidemic level (157,000).

According to Eurostat data, Hungary has seen the steepest price increase of all EU countries compared to the average price in 2015, with prices of second-hand dwellings rising 2.3 times and new dwellings almost 2.5 times compared to the base year, an increase of 234% in nominal terms and 185% in real terms.

After Hungary, the Czech Republic has seen the biggest increase in house prices in seven years (211%). On average, homes in the EU-27 are almost 45% more expensive than in 2015. The lowest values were recorded in Cyprus (104%) and Italy (106%). In the first quarter of 2021, the Czech Republic and Estonia recorded the highest annual house price increases (25 and 21% respectively), followed by the Netherlands, Lithuania and Hungary, each with 19%.