Interest in Prefab Housing Fallen Significantly

Buyer interest in prefabricated apartments has halved, after the average price per square meter of these properties rose by 30% in the first quarter compared to the previous three months, and now exceeds HUF 1 million, real estate broker Duna House told MTI on Monday.

They pointed out – based on their own data – that last year, the average price per square meter of prefabs increased by 14% in a full year, which has not yet reduced demand.

The statement quoted Ferenc Máté, deputy CEO of Duna House, who said that in the first quarter of last year, 17% of transactions in the capital still included residential apartments, but due to the price level soaring above HUF 1 million per square meter, some buyers have now turned away from the otherwise popular property type due to its predictable energy consumption. Only 9% of the properties sold in the capital this year were factory-built homes.

While last year buyers spent an average of HUF 42.6 million to buy a prefabricated house in the capital, in the first quarter of this year this amount rose to over HUF 55 million. It was noted that there were buyers who paid almost HUF 100 million for a fully renovated three-room prefab apartment, which meant a cost of HUF 1.5 million per square meter.

They also pointed out that the most sought-after residential area among Duna House's clients this year is the Békásmegyer residential area (in the north of the capital), where the average price per square meter increased by 40% to almost HUF 1.2 million in the last quarter. However, it is important to note that 85% of these apartments were renovated and in very good condition. Buyer interest is increasingly focused on such properties, they added.

In the current supply, good or habitable condition prefab apartments advertised at HUF 1.2-1.7 million per square meter are becoming more common, but Duna House said market conditions and demand do not always justify the increase in price, so sellers may be forced to make price cuts in order to close deals successfully.