For years properties in blocks of flats were the most popular choice of housing in Budapest. However, there is a growing interest in newly built real estate too. In 2017, the most in-demand properties in Budapest were homes in blocks of flats in the green belt with 2-3 rooms and good transport connections, closely followed by studios, which were usually bought as a form of investment.
Due to the rise in property prices in 2018, one could observe a migration towards the outer districts of the capital; people tried to buy bigger properties with the same budget, which was only possible further away from the city centre. Properties in blocks of flats remained the most accessible real estates, with 1.5-2 room flats proving to be the most affordable option. There was also a growing interest in newly built housing too. So far there have been no significant changes in choice of real estate compared to previous years. Homes in blocks of flats remain the most popular form of real estate.
Based on the following statistic, this is understandable: a family with a budget of €12,500-€15,500 can access a property valued €60,000-€80,000 if they choose to live in a block of flats. The price of homes in blocks of flats is constantly rising as they can provide the same comfort as a brick-built condominium. Due to their similarity, it is near impossible to negotiate down more than €300-€600 from the original price.
Property buyers are still searching for small flats; 2 room and 1+2 flats are very popular, while in the inner city, studios are the most sought after type of real estate. Buyers’ preferences have not changed either: Flats with balconies and on lower floors tend to be more popular. Other important considerations include lots of green space, accessibility and location in a quiet area. Renovating a property could also further increase its value. February was the eighth consecutive month when more used properties were bought in Budapest than were put on the market.
Therefore in the last eighth month the selection available has declined. Housing in the capital is in high demand. According to a study conducted last year, Chinese people are purchasing the most properties in Budapest. Foreign nationals are playing an increasingly more active role in the capital’s housing market as they seek to invest in real estate.