Buying real estate - Part III: Where to purchase?
Budapest is really a many-sided European city. We can find green areas with parks, playgrounds and woods, but the ones who prefer the vivid and hive downtown, can also find their dream home. Everyone can find the perfect area for their taste, but if you want to purchase a home, it's worth to think about the long-term options, where to buy real estate.
What do the statistics say?
Whether we'd like to buy real estate as an investment or as our dream home, choosing the district and the area is a crucial factor. A significant viewpoint can be if we look at in which area grew the sqm prices the most since the recession. According to the real estate statistics, in Budapest, the prices increased more than 20% since 2017. In Buda districts 2 and 11 grew the most dynamically, while in Pest district 5 is still the most expensive.
In Hűvösvölgy, the sqm price grew 66% in a year, now it's 1.1 million HUF/sqm on the supply market. In Lipótmező the 54% increase resulted a 1 million HUF/sqm, while the apartment prices in Rézmál rose 45% percent and produced a 1.05 million HUF/sqm. In the 2nd and 12th district the supply is tighter than in other districts of Budapest, but a lot of buyers want to purchase specifically there, and they send up the prices in the area.
Choosing the location as an investor
It's a good idea to decide according to which districts people are interested in the most. The real estate price probably will increase further and in the case of selling, it would be easier too. Most people look in the 2nd and 12th districts, no wonder, this is the most diverse neighborhood: from luxury houses to newly built condominiums and detached houses, you can find everything, and the infrastructure is also excellent. Not only Hungarian families, but also foreigner buyers attracted to this part of the city. According to the statistics the Asian buyers purchase detached houses in Buda, while the second most spending buyers, the French prefer the downtown apartments.
In conclusion, viewing the big picture, more people find apartments in Pest than Buda, but the most desirable districts are still in Buda. According to the forecasts, the demand will be the smaller apartments, mostly because the higher prices. The newly built real estates are more expensive YoY, smaller apartments are more fit to the budget. The newly built apartments' prices won't decrease in the next year, despite the rising supply market.
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Source: Ingatlan.com, KSH and FHB analysises