June 10, 2023

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Schedule – Economy – Do you have a good apartment? Today it is worth twice as much as it was ten years ago

Domestic real estate prices have risen over the past decade. Only in Estonia and Luxembourg is the situation worse than the rise in the Hungarian real estate market across Europe.

Rents and house prices in the EU increased by 1.3 and 7.3 percent in the second quarter of 2021, respectively, compared to the second quarter of 2020, according to the Eurostat real estate market survey.

Ten years ago, between 2010 and the second quarter of 2011, EU house prices and rents followed a similar path, but from the second quarter of 2011, these figures differ significantly. Despite a steady increase in rents until the second quarter of 2021, The Housing prices They were significantly volatile.

After a sharp decline between the second and third quarters of 2011, home prices were more or less stable between 2013 and 2014. Then there was a rapid rise in early 2015, when house prices soared faster than rent.

As a result, between 2010 and the second quarter of 2021, rents rose by 16 percent and home prices by 34 percent.

Hungarian real estate prices have doubled in ten years

Comparing the second quarter of 2021 with 2010, we can see that house prices in 18 EU member states are also higher than rent. Property prices in 23 EU countries have risen and fallen by a quarter.

Estonia (+ 133%), Luxembourg (+ 111%) and Hungary (+ 109%), Greece (-28%), Italy (-13%), Cyprus (-8%) and it is found in Spain (-3%) .

Rents have risen faster in only a few countries than property prices. In Estonia, rents rose by 142 per cent compared to a 132 per cent increase in house prices, while in Lithuania the same rates rose by 109 and 89 per cent, respectively, in Ireland, the previous 65 per cent and the latter “only” 34 per cent.

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Hungary in the negative elite

In Hungary, the situation is not so bad in terms of rent and real estate prices. Rents and real estate prices in the EU rose by an average of 16 percent and real estate prices by 34 percent.

In Hungary, the former increased by 45 percent and the latter by 109 percent.

As a result, Hungary ranks third in the EU in terms of real estate price increases, and we rank 5th out of 27 EU member states in terms of rent increases.

Years of boom

Evaluating Eurostat data, Laszlo Balog, leading economist at Ingatlon.com, said the impact of the deepening crisis in 2008 and determining subsequent years should be taken into account when comparing decades. As a result, in addition to weak economic performance in the first half of 2010, the real estate market was suppressed.

This is shown by the fact that in 2007 there were more than 191 thousand For sale It happened among private individuals, and in 2008 there were only 154 thousand. Then between 2009 and 2013 the market was characterized by less than 100,000 transactions. In essence, turnover has been on the rise since 2014, partly due to the economic recovery, rising wages, state housing subsidies and the transformation of deferred home purchases during crisis years. In addition, liquidity is declining and the shares of real-yield investors have increased in the home market, with prices rising by 10-20 percent per year. Due to this, the turnover gradually increased between 2014 and 2018, the number of sales last year was more than 163 thousand. During these years, the increase in demand led to a significant increase in prices, which can also be seen in Eurostat data.

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In 2019, the number of sales will fall to at least 157 thousand, mainly due to the stagnation of the Budapest market. In 2020, due to the epidemic, turnover was less than 140 thousand, but by 2021, sales of 140 to 150 thousand are expected again.