Hungary property prices have outpaced wages over the last five years, as overseas property investors have made the most of a strong Hungary property market.
Real estate dealer ingatlan.com compared local average net salaries to the average price of a 50m2 flat. Although net salaries have also risen over the last five years (around 46-59 per cent), property prices rose by more in all of Hungary’s 19 county seats.
Hungary property prices rose most in Debrecen, where the purchase of an average flat now requires 111 months of the local average net income (whilst not spending a single forint on anything else like food, living costs, etc.), a significant hike after only 77 months in 2015.
Experts owe this to Debrecen’s increasing attractiveness, such as Hajdúság’s capital being the second largest university hub after Budapest; also, car manufacturer BMW will soon build a huge factory there.
Budapest came in second and saw the biggest increase proportionally in Hungary. In the capital, in comparison to only 68 months in 2015, residents now need 104 months of net income for an average flat.
Veszprém finished third in the Hungary property price list, with a jump up from 67 months to 97 months. Nyíregyháza’s fourth place is also surprising, however it is very much due to the fact that the city usually bottoms the list of the average net salary, adding to the high unemployment.
Salgótarján, the rather less wealthy and underdeveloped seat of Nógrád county, rounds out the list – the purchase of an average flat there requires only 43 months of net salary at the moment, preceding Tatabánya and Miskolc.
Interestingly Győr, the city of Audi, saw the lowest increase in this matter, with a hike of only one month, in comparison to 2015.
While the rise of housing costs being faster than that of salaries, seems a tendency in the Western world, the recent pace of increase of Hungary property prices still remain well above the average in the EU, attracting further investment from abroad.