In our most important industrial cities, the rise in house prices has pushed the important customer base to the surrounding settlements. But the former price advantage is melting, and from our outlook, we can safely say that there has been a price explosion in these villages and no jobs on the rise in the coming months.
By searching real estate advertising portals — and providing feedback on the situation found a year and a half or two earlier — it is possible that supply has now declined in villages in the immediate vicinity of a large industrial city. In other words, the renovable family houses are running out. Part of the customer group consists of people moving from the given city, on the other hand, those coming from other counties of the country. The strong demand of the two of them is legally buying up prices and some experts say they are already approaching prices measured in the outer districts of a given city.
Let’s look at some specific examples! According to the data of NAV – these were also processed by OTP Residential Real Estate Value Map – in the vicinity of Debrecen the price increase was 62 values in two years. In the agglomeration of Székesfehérvár, residential real estate, mostly family houses, increased on average by 39 per cent, in Győr by 33 per cent and in Szeged by 25 per cent. During the same period, a price increase of “only” 11 percent was measured within the mentioned cities, ie in Debrecen 21, in Fehérvár 14, in Győr 19 and in the county seat of the Southern Great Plain. There were far fewer sales in the big cities in 2019 and 2020 than in the surrounding settlements.
A representative of OTP Ingatlanpont told our newspaper that little data is available in Pécs, because far fewer transactions took place than in the above cities and their agglomerations. Although it was recorded that between 2019 and 2020, the average price of residential real estate in the city of Baranya will increase by 7 percent, while in the immediate vicinity there were 10 different increases in average prices.
We were curious about the price change at the western end of the country, in Győr and especially in Szombathely. Our own information collection and data from OTP Real Estate and Duna House (DH) revealed that in the first half of the year, close to the big city of Vas, you have to pay no less than 50-65 percent more for a house than you did a year and a half or two ago. The Szombathely agglomeration map of Sárvár has also been uploaded, the first, larger condominium will be handed over after two years, mostly with apartments of 45-60 square meters.
We can also report so much massive construction and renovations in Győr. Row houses also appeared in Győrújbarát, Győrújfalu and other smaller villages. A new house of 90-140 square meters costs 57-85 million forints. In this context, Károly Benedikt, Head of Public Relations and Communications, mentioned the beneficial effect of the village CSOK, but added that although there are more sources of credit and support if there is not enough real estate for sale, the epidemic has looking for houses or apartments with terraces.
“Those who move out have a higher need for plots. But it is also true that, for example, in the case of Szombathely or Győr and Debrecen, the cyclicality previously characteristic only of Budapest also appeared. If the transport takes too much time, some people prefer to move back to the big city, so developers will start building within the city again if they find a suitable plot of land, ”the expert said.
In Tatabánya, we saw that many people want to change their apartment in the city center to an agglomeration house. In Kecskemét, many years ago, even before the construction of the car factory, many people moved to the surrounding villages due to the price advantage, but now they have strengthened the decline in this advantage, they have to go further and further to find a suitable house. Thus, the districts within the city, but close to the agglomeration, are becoming more valuable, which is why these two residential park investments could have started, in one of the 90-100 square meter apartments they can be bought for 50 million forints.
The same is especially true for Debrecen, in practice, for example, Hajdúszoboszló is also an agglomeration of Cívisváros, and one or two smaller investments have been launched in the last year. It is also true there that a new family house of 100-120 square meters will cost 56-60 million forints.
Székesfehérvár is in a special situation, where due to the spread of the city, there is plenty of space for smaller residential parks or townhouses even in the outer zones. A 10-year development concept has just been adopted. In any case, Lake Velence and its district also belong to the agglomeration of Fehérvár, where residential park investments have started one after the other and many of the customers have moved out of Fehérvár. In Gárdony, a HUF 45-50 million has to be paid for a 55-60 square meter condominium.
There are also a large number of families who come to the Fehérvár agglomeration from Budapest or another county. One or another adult in the capital or White City has a job and business commuting to the county seat or the capital. All of this, understandably, could only push prices up.
The big question is what will happen in the agglomerations with large-sized (150-300 square meters), outdated family houses. According to intermediary networks, they sell much slower than those around 100 square meters. Always a lower unit price can attract moving families or it could be a solution for two familiar families to move into one, of course after a thorough renovation. There are plenty of resources available here today and overall they can still come out cheaper than choosing a custom family home.