What kind of new apartment do we buy in the middle of the crisis? – These are the best-selling homes in Budapest
In a previous article, we already reported on the average prices of the latest new housing market in Budapest based on data from the Budapest Housing Market Report. However, it is not yet about which apartments were able to arouse the interest of buyers at the end of the year 2022, which brought many changes and difficulties.
A total of 1,070 new apartments were sold in autumn 2022,
what we can call stagnation or a slight decreasebecause it is only 50 units less than the value of the previous quarter.
The purchases were made in a market where:
- the average square meter price is HUF 1.421 million, i.e. 5% more in the summer of 2022.
- an average newly built apartment in Budapest cost HUF 97.4 million.
- on an annual level, the increase in price was still above inflation, at 29.7 percent, (but it has already decreased on an annual and quarterly level)
The new supply of purchases
In order for the number of sales to remain high, a new offer is also needed. Based on data from the Budapest Housing Market Report, it appears that sales have slowed down among projects that have been on the market for a long time. (There are still 750 vacancies in Budapest of the new apartments planned for completion at the end of 2022, which is 10% of all the apartments that will expire at the end of the year.) However, the sales statistics show thatSince September, more than 2,600 apartments have been sold in new construction projects, which is a big jump compared to the number of around 1,000 in the previous two quarters. Most recently, the sale of this many newly built properties started in the second quarters of 2019 and 2021.
Another interesting thing is that in the new range, projects with a larger number of apartments have never represented as much weight as they do now. The average size of the launched projects exceeded 80. This suggests that only the bigger developers dare or want to stay in the game. Among the larger developers, Cordia, Metrodom, LIVING, Bayer Property, Polat, iDOM were also active, either for the new phases of their older developments (Park West III, Sasad Resort Sunrise) or their completely new multi-phase projects (Metrodom Green, Cordia Woodland). by starting The dominant market players are therefore moving forward even after the preferential VAT deadline has been extended, and are confident that there will be buyers for their built apartments in the coming years.
An IX. district was the winner
It reduces the number of sales in all but one district. The always popular and well-stocked XIII. district still retained the highest number of sales: 30 percent in XIII. it was sold by the developers in a district project, but this represents a minimal decrease compared to the summer value. Mainly in Kulső-Pest and the XI. there was a decline in the district, where 27 and 38 quiet apartments were sold, as in the previous quarter.
However, more apartments were bought in the IX. district, to which the sales of several new projects also contributed, City Pearl II. pace and the Metrodom Green I. also started with outstanding sales, which is why in order to
every fifth apartment was sold in Ferencváros.
Although two-room apartments are still the most popular among buyers, 12 less in autumn such property was sold by the developers as in the summer. On the other hand, the sales indicators of studios (+13%) and three-room apartments (+4%) increased, while apartments with four or more rooms fell (-9%).
Overall, 47% of the new apartments sold in Budapest this year were two-room and 26% three-room. Presumably due to high prices and interest rates, the share of smaller apartments increased compared to last year.
What can we expect next?
It is likely that after 2022, the year 2023 will not be an outlier in terms of the number of sales of new apartments. About this year 6,200 newly built apartments were purchased in Budapest, which is 15-20 pleasant, like last year. This decreasing trend may continue even in the next year, due to the deterioration of financing options and economic conditions, as well as high price levels, an increasingly narrow group will be able to afford to buy a newly built property in the future.
However, there are many ongoing developments, so A larger handover wave at the end of 2023 you will be able to see. At that time, 2,530 apartments are planned to be handed over, more than a third of these apartments are still for sale. In 2024, 4,600 and 1,360 apartments are expected to be delivered sooner or later. More than half of the homes in these projects are still available for purchase.
Cover image: Getty Images