Will the skyrocketing of property prices in Budapest continue in 2018?

According to Hungarian Real Estate sources the skyrocketing of property prices may stop in 2018. This is because the number of property purchase is decreasing. There was an 18.4 percent increase in the prices of Budapest properties in 2016. Also, on a national scale, prices have increased by 10-15 percent since 2015.

Price increase may stop

Based on the latest Hungarian Real Estate experts analysis, property prices increased even in 2017. For example, real estate prices grew by 10pc in Budapest; however, the trend might stop in 2018, as demand for new and resale flats has not changed.

However, according to some of the local exonomists, two significant changes happened in 2017. On the one hand, more and more property purchases were financed with loans because interest rates were lower than ever. On the other hand, property purchase in Budapest is not increasing anymore. As a result, dynamic price increase may stop this year.

The average price per sqm in Budapest was 543 thousand HUF at the end of December. This means a 16 percent rise since 2016 December.