Constant growth of GDP
Now is the best time to buy an apartment in Hungary
Due to the present situation of the real estate market in Hungary, the most significant trends and the special locations of our properties, City Collection apartments offer a unique combination of a new home and an excellent investment opportunity. With regard to apartments in new residential buildings located in the city centre, further price increases can also be expected as the number of empty plots is decreasing. Fewer empty plots means fewer new developments, and the shrinking supply may push up the price of relatively new apartments as well. Compared to the European market, Hungarian apartment prices still seem low, even considering the lower levels of income...
Since 2012, the end of the financial crisis, GDP has been growing in Hungary and, according to the experts, this trend is likely to continue in the years to come. Simultaneously, the number of people buying a property has also grown rapidly: in the first 9 months of 2015, the number of housing loans grew by about 50% year on year. It is no wonder that, after years of downturn, the real estate market has started to thrive again.
In just two years, Budapest has climbed back from the 17% drop suffered by the real estate market during the crisis – this explosive growth took place due to the outstanding investment opportunities. Prices have been rising since 2005, and this trend is likely to continue over the next 3-4 years, according to forecasts. As the demand for new build homes significantly exceeds supply, the price of 5-10 year old apartments is relatively high, due to which owners investing in new homes can achieve healthy profits, even in the short term. Not to mention that prices per square metre in ever-more popular Budapest still lag far behind those in other major European cities.
Most dynamically developing areas:
Districts 5 and 7
Lack of new homes built in good locations in the city centre
In the past years, Budapest has become one of the most popular tourist destinations in Europe. In line with the international trends, tourists increasingly prefer to stay in a rented flat or apartment rather then in a hotel while they are in Budapest. The numbers speak for themselves, and as the amount of people capitalising on their apartments this way is increasing, this trend primarily benefits those opting for long-term lets. The limited development opportunities in downtown area further increases the exclusivity of the most central districts - and apartment prices.