Here’s why Budapest real estate remains a bargain by European standards
Budapest’s real estate market is heating up, with house prices in the Hungarian capital rising faster than almost anywhere else in the European Union. Yet despite this sharp increase, real estate in Budapest remains among the most affordable in Europe’s major cities.
Hungarian real estate market’s performance
As Portfolio reports, the Hungarian real estate market, particularly in Budapest, has seen a notable surge in house prices over the past year. Hungary outpaced most of its European Union counterparts with nearly a 13% year-on-year rise in the fourth quarter of 2024. While the broader Central and Eastern European region also witnessed substantial growth, Hungary’s figures remain the highest among the Visegrád countries. A comparative analysis of actual house prices, rather than indices, was conducted across 30 major European cities to provide a clearer context.
Average property prices in Europe
When comparing average property prices per square metre, Budapest still ranks among the more affordable capitals, especially in its city centre, where prices hover around HUF 1.5 million (EUR 3,674). This contrasts starkly with Western European hubs like Zurich and London, where similar properties reach HUF 9 million (EUR 22,036) and HUF 7-8 million (EUR 17,139-19,587), respectively. Even within the region, cities like Prague and Warsaw have surpassed Budapest in price, highlighting rising demand and smaller high-density areas driving up local real estate costs. Conversely, cities like Athens and Bucharest remain cheaper, while war-torn Kyiv records the lowest figures on the continent.
Rental market
In terms of rental markets, Budapest again falls mid-range. Renters in cities such as Zurich, London, and Amsterdam face monthly costs of up to GBP 1 million for a central two-bedroom flat, while similar apartments in Budapest remain far more attainable. However, affordability is relative: lower average incomes in Budapest mean that even modest rent can strain budgets. Still, Budapest remains more accessible than many Western cities, offering potential value for both local residents and investors seeking lower entry points in Europe’s real estate landscape.
Finally, when gauging the profitability of renting versus buying, Budapest presents moderate returns. While cities like Lisbon and Athens suffer from a lack of supply and booming demand, Budapest offers a more balanced picture. Around 40% of the average monthly income is needed to rent a two-bedroom suburban flat, placing Budapest in the middle of European rankings. Despite recent price hikes, Budapest continues to offer comparatively low property prices and manageable rents, maintaining its appeal within Europe’s competitive real estate market.
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