“Housing price growth driven by scarcity of new homes”
According to ingatlan.com, prices of the most popular size of new homes - those of an area of 50-70 square meters - averaged HUF 673,000 per sqm in Budapest in mid-January. In other cities, prices were much lower: for example, HUF 337,000 in Győr, HUF 396,000 in Debrecen, and HUF 383,000 in Szeged, business daily Világgazdaság reported.
László Balogh, lead expert at ingatlan.com, said that the price growth of new homes is driven by a sparse supply caused by reduced construction in the preceding years, but also by rising costs due to labor shortages and price increases of construction materials. However, housing prices are not likely to grow in Budapest as much as before, at a 15-20% rate, as they are already very high compared to incomes, he added.
Read more: bbj.hu