Hungary’s housing market revs up—But Budapest is no longer in the driver’s seat
Hungary’s real estate market is showing renewed energy, with demand for homes picking up again in May after a slowdown in April. However, a noticeable shift is occurring: the epicentre of the housing market has moved away from Budapest to smaller towns and villages across the country.
A shift in Hungary’s housing market
According to Ingatlan.com, the number of inquiries for homes for sale rose 4% in May compared to April and was 7% higher than in May 2023. The uptick wasn’t limited to potential buyers—sellers also returned in greater numbers. Over 35,000 residential properties were listed in May, marking a 5% increase both monthly and annually. Notably, listings from private sellers surged by nearly 10%.
Still, the recovery has not been evenly spread. While Budapest had been the leader earlier this year with a strong first quarter, demand in the capital has since stagnated. Meanwhile, counties like Szabolcs-Szatmár-Bereg, Heves, Pest, and Nógrád saw a significant boost in interest from buyers.
“The April dip now looks temporary, but it’s clear the market’s momentum is shifting to the countryside,” said László Balogh, chief economist at Ingatlan.com. “Our earlier forecast that the housing market engine would move out of Budapest is being confirmed.”
Why are buyers shifting towards villages?
This trend is particularly visible in the performance of Hungary’s smallest settlements. While demand in cities grew only slightly (1–2%), villages experienced a dramatic 20% jump in interest. Many of these are located in Pest County, forming part of the Budapest metropolitan area.
So, what’s fueling the village boom? According to Balogh, it’s partly due to the soaring property prices in Budapest. “Many buyers are priced out of the capital and are looking for more affordable options in nearby areas,” he noted. Additionally, ongoing political debates about municipal autonomy haven’t deterred buyers from exploring these rural areas.
Budapest still sees an expansion in supply
Interestingly, while demand in Budapest has levelled off, the supply there has continued to expand. Since January, the number of properties listed for sale in the capital has grown by 20%. “At current prices, the stagnant demand simply can’t absorb the available supply,” Balogh explained. “For the rest of the year, we expect self-use buyers, rather than investors, to play a more dominant role, especially outside Budapest.”
The shift suggests that while Budapest remains a key player, Hungary’s housing market is becoming more decentralised. For expats, foreign students, and Hungarians returning home or relocating within the country, this could mean more diverse—and potentially more affordable—housing opportunities beyond the capital.
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