The remarkable thing about the Lake Balaton property
After a slowdown in 2022, the Hungarian market is gradually recovering. Analysts expect activity to pick up from the end of 2023 but unevenly across the country. In particular, property on Lake Balaton is showing record growth rates. This may indicate an increased interest in the region among investors or property buyers.
According to Duna House, the value of homes near the lake is growing rapidly. It has already surpassed the figures for the Hungarian capital, Budapest. On average, properties in the Balaton area cost 164 thousand euros, more than two times higher than the prices in 2018. Then, houses here cost about 63.3 thousand euros.
In addition, the analysts drew attention to the uneven distribution of prices in the area itself. The difference between the cost of objects in the northern and southern parts of the lake was 17%. In general, the situation is as follows:
– properties on the north shore of Lake Balaton cost 1.9 thousand euros per square metre;
– the price per square metre in the southern part is 1.7 thousand euros;
– the volume of expenditure on this property market is 6% higher than in Budapest.
Analysts explain the rate of increase in housing costs by general trends in the country. In Hungary, unlike other EU countries, mortgage lending conditions remain favourable. Rising wages contribute to increased demand for local housing. The country’s high employment rate also positively affects the property market.
Advantages of Balaton
The popularity of lakefront properties is due to the attractiveness of the location itself. Lake Balaton is the most important resort in Hungary, located 100 kilometres from Budapest. It is the largest freshwater lake in Central Europe. Due to its high mineral content, the lake and its nearby springs are considered curative.
The surrounding area of Lake Balaton offers picturesque landscapes and a mild microclimate similar to the Mediterranean. As Hungary is a landlocked country, the lake attracts the largest number of holidaymakers, which stimulates demand for local facilities. Moreover, the infrastructure around Lake Balaton is well-developed, making the region suitable for both holidays and year-round living.
Overview of the property market in other regions
It is worth noting that property prices in Hungary are not only rising near the lake. Other regions are also experiencing price increases, namely:
1. Veszprém. One square metre of property here costs 1480 euros, and the average cost of an object is about 128,4 thousand euros.
2. In the counties of Zala and Somogy, options are available for 991-1103 euros per square metre. The average purchase price is 89 thousand euros.
At the same time, the Balaton market is notable for its great diversity. Here, you can buy both more affordable options and luxury homes.