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2024-11-08
Last year, an average earner in Budapest would need about 17 years’ worth of salary to buy a new apartment, with further price increases expected. One reason for the rise is that many people buy properties as investments, and approximately 160,000 apartments in Budapest remain vacant. Experts have discussed potential solutions.
According to the latest analysis by GKI, in 2023, a 60-square-meter used apartment in Budapest could be bought with 140 months of income, and a new one with 200 months. Compared to 2010, apartment prices have increased 3.6 times for new apartments and 3.5 times for used ones.
GKI CEO László Molnár believes that government housing programs, such as the "CSOK" and "Babaváró" loans, have driven the sharp price increase. He suggests that state-funded housing construction could be a solution to the housing crisis, with the state directly building properties to keep prices down.
He also mentioned that across the country, around 572,000 homes are empty, with 160,000 in Budapest, most of which need renovation.
Real estate expert Zoltán Leskó emphasized the importance of rural development. He argued that without infrastructure, even affordable housing in rural areas would not attract people due to the lack of job opportunities.
Next year, prices are expected to continue rising, fueled by investment purchases. László Balogh from ingatlan.com warned that challenges in the real estate market could worsen. He pointed out that significant funds are tied up in inflation-linked government bonds, which could redirect demand into the housing market, leading to further price increases. Balogh stressed that increasing incomes and expanding the housing supply would help address the issue and slow price growth.
