This has led to a complex and dynamic environment that presents both opportunities and challenges for investors and residents alike. Here are some of the key trends shaping this evolving landscape:
**1. Growth of Central Budapest:**
* **Increased Property Values:** Central Budapest has witnessed a surge in property values, driven by factors like improved infrastructure, cultural attractions, and a growing demand from young professionals and families.
Interestingly, while inner-city districts faced depopulation, areas on the outskirts saw growth. The XXIII district recorded nearly a 10% increase in population, with the XXII and XIII districts also experiencing significant growth, each over 7%. The issue of population decline in the VI district has been highlighted in connection with a potential ban on Airbnb. Local authorities have raised concerns that short-term rentals could be driving residents away, a factor contributing to the district’s noticeable depopulation. Real estate prices: rising but uneven While population declines mark the city centre, the real estate market in Budapest has seen notable activity, especially over the summer. Prices nationwide have shown little month-to-month change, with a slight increase of just 0.1% between July and August. However, over the past year, real estate prices have continued to climb at a steady rate of 6.5%, a slight uptick from the previous annual figure of 6.4%, László Balogh, economy expert at ingatlan.com, told Economx.
In Budapest’s outskirts, specifically in the agglomeration of Pest County, real estate prices surged by 1.2% in July, while the rest of the country saw more mixed results. Despite this, the annual growth in Pest County remained the lowest in Hungary, at only 3.2%. Central Budapest’s luxury real estate market saw some price adjustments recently. In the VI district, the average price per square metre for premium apartments dropped by 1% in just four weeks, from HUF 1.45 million (EUR 3,670) to HUF 1.43 million (EUR 3,618). This decline comes amid broader discussions about potential regulations targeting short-term rentals, like Airbnb. In mid-September, a referendum on banning short-term rentals is set to conclude in the VI district, with government actions on the matter likely to follow.
Despite these fluctuations, real estate remains a hot commodity in several Budapest districts, with average prices per square metre exceeding HUF 1 million (EUR 2,530) in 11 districts. Meanwhile, in four districts—XVII, XXI, XX, and XXIII—prices remain more affordable, with average prices still under HUF 800,000 (EUR 2,024) per square metre. Creative solutions in Budapest’s housing market Amid these changing trends, creative housing solutions have emerged in Budapest. The city recently gained attention for what could be Hungary’s smallest apartment. Located near Nyugati station, this 3.2-square-metre property originally served as a bathroom, but the owner has transformed it into a fully functional living space.
This loft space provides a unique and intimate atmosphere, perfect for a couple or two friends seeking a cozy and unconventional accommodation. The apartment boasts a minimalist design that prioritizes functionality and space efficiency. This is evident in the loft bed’s compact size, the multi-purpose furniture, and the cleverly designed storage solutions. This minimalist approach allows for a comfortable and practical living experience without compromising on style. The apartment’s location is a major selling point.
