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Smaller properties for the same price?

The news that house prices are growing are no longer news. This is a tendency that news sites are writing about as a novelty almost weekly. We are now examining how this rise in prices is felt by the average homeowners in downtown Budapest. The comparsion was made from now to 2 years ago, altough there is a constant increase in prices everywhere, sales prices in the downtown market have stagnated in some places (based on the conclusions of a central home transaction).

Otthontérkép.hu made a questionnaire survey asking how much of the Hungarians are looking for the average amount of money, the size and location of the apartment. As a result of the research, it is clear that the majority of Hungarians would like to have a 3-room home, for less than 35 million forints in a less frequented place. They sought answers to the same questions for the residents of Budapest as well as for the Budapest apartment seekers, which also revealed that the 25-32 million real estate demand was greatest. (source: mfor.hu)

Since Otthontérkép was based on the advertised guidelines of the apartments, we also conducted this research on the purchases of the homes sold, based on the Central Home‘s own database. It is important that the statistics may differ considerably in Budapest, as well, Central Home analyzed the data in comparison to the market”s state from 2 years ago.

Although the amount for housing has not changed last year, in this price category, it is a real rarity to find a dwelling property with the same parameters as a year ago. Here come the compromises. If the supply becomes more expensive, it is necessary to increase the cost, if there is no capacity for that, the expectations must be reduced.

The survey of Otthontérkép shows that in the last quarter of 2016 between the prices of 25-32 million HUF mostly newly constructed and novel real estates could be found in the supply, but at this price category we are now only able to get refurbished. The other factor, which is inversely proportional to the rise in prices, is the size of the flats. In just one year, the floor space of the 25-32 million forints category was reduced by 3 squaremeters.

Central Home office managers have categorized the most frequently searched housing types into three categories, which we have separately examined. The categories are divided into: 25-35 million; 50 million forint real estates and exclusive properties. Housing between 25 and 35 million forints at Central Home is very common, which is the same as the category surveyed by Otthoncentrum, so we get a good basis for comparison.

The analysis of apartments in the price range of 25-35 million forints is extremely complex, so market expertise and presence in transactions are indispensable. Among other things, it is necessary to examine the ground floor flats, which are typically reduced (partly due to the effect of Airbnb You can read more about this in our previous article. Contrary to the ground floor flats, the upstairs apartments in the category were more expensive, to such an extent that 2 years ago we could have bought a half-room larger apartment for the same price in the downtown area than we can today.

The results of the two researches show almost the same results. As a consequence, this trend is a general characteristic of the Budapest apartments that are for sale. The other two Central Home categories (around 50 million, and exclusive properties) target another target group that will bring different market results. Statistics on these are discussed in our next article.


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