Hungary Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

13.8x

Ratio of property prices to annual income

Rental Yield

3.3%

Average annual rental return

Price to Rent

30.6

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Hungary Real Estate trends and investment implications

Market Overview

Hungary's property market currently exhibits signs of being overheated with high price-to-income and price-to-rent ratios, indicating potential risks for new buyers. However, moderate rental yields suggest steady, though not particularly high, returns for rental property investors. Historical data shows significant price appreciation, but current metrics advise caution as the market may be nearing its peak.

Key Findings

Data-driven insights

•The price-to-income ratio stands at 13.8, indicating a market that may be overvalued relative to local incomes.
•Gross rental yield is measured at 3.3%, which is modest and may be less attractive compared to alternative investments.
•The price-to-rent ratio is 30.6, suggesting that renting may currently be more economical than buying.
•Rental yields remain stable at 3.3%, indicating limited growth in rental income relative to property prices.

Market Trends

Historical patterns

•A long-term upward trend in property prices, with significant appreciation since the early 2000s.
•A gradual increase in price-to-income ratio over the past two decades, reflecting a growing affordability challenge.
•Stability in rental yields over the last decade, despite fluctuations in property prices, indicating consistent demand for rental properties.

For Investors

Actionable takeaways

•Investors should exercise caution and consider waiting for a market correction before making new purchases.
•Focus on properties in high-demand rental areas to maximize yield within the current market constraints.
•Monitor interest rate changes closely, as they could impact rental yield attractiveness and financing costs.
•Consider diversifying investments beyond the Hungarian property market to mitigate risks associated with potential market corrections.

Market Context

Hungary's property market has matured significantly over the past few decades, characterized by strong price growth and increased investor interest. However, current metrics suggest a potential overheating phase, necessitating careful analysis and strategic investment decisions.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.