Residential real estateThe Hungarian residential real estate market has been characterized by the rapidly rising house and apartment prices over the past few years, with the house price index peaking in 2022 . Reasons behind the phenomenon include increasing demand by investors due to low-interest rates, subsidies for families to purchase a new house, growing material costs, and labor shortage.
Budapest has the most expensive housing options, with an average offer price exceeding one million forints per square meter. Moreover, in 2021, the average rental price of apartments totaled 3,192 forints per square meter per month in the country's capital. Debrecen is the second most expensive city for purchasing new apartment homes or houses, with an average offer price of 789 thousand forints per square meter.
Commercial real estateOn the non-residential real estate market, the office sector attracted the highest investment volume in 2021, measuring at 79 percent. In the same year, prime offices benefited from approximately 1.3 billion euros worth of investments, marking an increase compared to the previous year which was negatively impacted by the coronavirus (COVID-19) pandemic. The retail real estate segment was also negatively affected by the safety measures introduced to curb the spread of COVID-19. As a result, investment volumes decreased to 80 million euros in 2021 compared to 502 million in the preceding year.
Owing to the surge in e-commerce, demand for industrial real estate properties spiked in the third quarter of 2022 and reached approximately 218 thousand square meters. At the same time, the industrial property vacancy rate totaled 4.2 percent.