Real estate rollercoaster: Where prices still climb and where they don’t in Hungary
Hungary’s real estate market experienced a dramatic boom in early 2025, with prices and transaction volumes surging to decade highs. However, by late spring, the market had largely stabilised or even cooled in several regions, with interest and activity retreating from their peak.
According to the latest report by the Hungarian National Bank, nearly one in five property transactions in Budapest closed above the asking price in the first quarter of 2025. Nationwide, this figure stood at 8.3%. A surge of state bond redemptions had briefly flooded the market with funds, triggering a rapid increase in demand, particularly in rural areas.
During the final quarter of 2024, housing prices rose by 15.1% year-on-year (a real-term growth of 10.9%). By Q1 2025, annual price growth reached 15% across Hungary and a striking 19.2% in Budapest. Despite the impressive gains, a stagnation trend emerged as early as April in many regions, Hungarian tabloid Blikk reports.
Regional disparities emerge
In Budapest and the surrounding areas, only properties priced with precision — either low-cost flats or high-end luxury homes — continue to attract buyers. “The phones have stopped ringing,” Mariann Tahu of Gyémánt Real Estate told Blikk. Meanwhile, in Miskolc, demand remains strong, particularly for investment properties, due to significantly lower prices compared to the capital.
Vác and the northern suburbs of Budapest also saw early-year activity, but expectations driven by news of incoming state bond money never fully materialised. “We didn’t meet a single buyer using pension savings or government bonds,” said Tamás Erdősi from RDS Real Estate. He noted that a market correction began by April, with only realistically priced homes selling.
A correction in sight?
Real estate expert Zsófia Sebestyén-Teleki from Otthon Centrum said that while everything sold in the first four months of the year, the momentum faded by late April. She anticipates downward price adjustments, especially for overpriced listings.
In Győr and its surroundings, prices rose by 10–20% over the past year but are now seen as approaching unaffordable levels. A local agent noted that while homes in the 50–60 million forint range still move, those near 100 million are nearly impossible to sell.
In western Hungary, including Zala and the southern shores of Lake Balaton, interest spiked late last year but tapered off by May. Salgótarján, however, saw record interest, with demand exceeding supply early in the year. Prices there have nearly doubled since 2022, though rental yields still outperform those in Budapest — despite the challenge of finding reliable tenants.
Hungary’s property market is now in a state of flux, with some regions cooling rapidly while others maintain momentum. For now, sellers may need to adjust their expectations as the era of fast and easy deals draws to a close.
Read more news about the Hungarian real estate market HERE.
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