Property price increases in Budapest moderated in November, with annual growth dropping by one percentage point according to data from property portal zenga.hu. While the capital experienced stronger activity in the first wave of this year's property boom, demand has shifted towards the agglomeration in the second half of the year.
Property prices in Budapest and surrounding areas have been breaking records, with shifts in both demand and supply patterns. "The early-year property investment wave, mainly driven by maturing government bonds and interest payments, primarily affected the capital, while the Otthon Start programme available from September has mainly stimulated the agglomeration market," said Péter Futó, Head of Analysis at zenga.hu.
The supply of properties for sale has narrowed most significantly in mid-Pest districts, including the 10th, 14th and 19th districts, indicating above-average demand there. Supply has also tightened slightly in the agglomeration, suggesting increased demand. However, the number of advertised properties has grown above average in outer-Pest districts including the 16th, 17th and 21st districts.
Budapest's average advertised price of 1.495 million forints per sqm nearly reaches the maximum value of the Otthon Start programme. This represents 23% annual price growth, though the pace of annual price increases slowed by one percentage point in November compared to October. Three districts saw annual price increases exceeding 30% in November: the 15th, 9th and 7th districts, with the 10th district approaching this level.
The agglomeration showed the smallest price increase at 14%, while the 1st district recorded 12% growth and the 17th district was the only area where annual price growth remained just below 10%. "This confirms that demand continues to target somewhat closer districts rather than peripheral areas far from the centre," Futó noted.
