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Budapest's apartment market reached an average of HUF 1.27 million per square meter (€3,150) in June 2025, with significant variations between districts and property types.
The Hungarian capital has experienced remarkable price growth, with annual increases ranging from 11.8% to 19.2% depending on location and property age. New-build apartments command premium prices at HUF 1.68 million per square meter, while older properties average HUF 1.17 million per square meter. Central districts like Belváros can reach HUF 2 million per square meter, while outer areas like Soroksár remain below HUF 800,000 per square meter.
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Budapest apartment prices average HUF 1.27 million per square meter as of June 2025, with new builds costing 40% more than older properties.
Central districts command premium prices while gentrifying areas offer the best investment potential for capital appreciation and rental returns.
| Key Metric | Value (HUF) | Details |
|---|---|---|
| Average price per m² | 1,270,000 | All apartment types (€3,150) |
| New-build apartments | 1,680,000 | 40% premium over older properties |
| Used apartments | 1,170,000 | More affordable option |
| Most expensive (District V) | 1,980,000 | Historic city center |
| Most affordable (District XXIII) | 785,000 | Suburban areas |
| Annual price growth | 11.8-19.2% | Varies by district |
| Transfer tax | 4% of value | Standard buying cost |
What is the current average price per square meter for apartments in Budapest?
The average price per square meter for apartments in Budapest stands at HUF 1.27 million (approximately €3,150) as of June 2025.
New-build apartments command significantly higher prices at HUF 1.68 million per square meter (€4,170), representing a premium of over 40% compared to existing properties. Older or used apartments average HUF 1.17 million per square meter (€2,900), making them more accessible for budget-conscious buyers.
The Budapest residential market has experienced exceptional growth, with these prices reflecting the strongest demand in the city's recent history. Construction costs, limited supply, and government housing incentives have all contributed to pushing prices higher across all segments of the market.
Premium locations within the city center can exceed these averages significantly, while suburban districts offer more affordable entry points. The price gap between new and existing properties continues to widen as developers focus on high-end projects in desirable locations.
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How do apartment prices vary between districts and neighborhoods in Budapest?
Budapest's 23 districts show dramatic price variations, with central areas commanding premium rates while outer districts remain more affordable.
| District | Average Price per m² (HUF) | Character & Notes |
|---|---|---|
| V (Belváros) | 1,980,000 | Historic center, premium location |
| II (Buda) | 1,770,000 | Upscale residential, family homes |
| XII (Buda) | 1,770,000 | Family-oriented, green spaces |
| XIII (Angyalföld) | 1,350,000 | Modern developments, metro access |
| XIV (Zugló) | 889,000 | Mixed residential, good value |
| XXIII (Soroksár) | 785,000 | Suburban, most affordable |
District V (Belváros) represents the most expensive area, with quality properties approaching HUF 2 million per square meter due to its historic significance and central location. The Buda side districts II and XII command high prices for their prestigious addresses and family-friendly environments.
Southeastern districts like XXIII (Soroksár) offer the most affordable options, with prices below HUF 800,000 per square meter. These areas provide good value for first-time buyers and investors seeking rental yields over capital appreciation.
What's the difference in price per square meter between new-build and older apartments?
New-build apartments cost HUF 1.68 million per square meter compared to HUF 1.17 million for older properties, representing a 43% price premium for new construction.
This significant gap reflects several factors including modern amenities, energy efficiency, contemporary layouts, and compliance with current building standards. New developments often feature underground parking, elevators, balconies, and smart home technology that older buildings lack.
Older apartments, particularly those built during the communist era, require renovation and modernization but offer better value for money. Many investors specifically target these properties for renovation projects, as the improvement potential can justify the lower initial purchase price.
Premium new developments in District II can exceed HUF 3.4 million per square meter, while renovated older apartments in the same area might cost HUF 2.5 million per square meter. The age and condition of the building significantly impact both initial cost and ongoing maintenance requirements.
How have average apartment prices in Budapest changed over the past 1 year and 5 years?
Budapest has experienced dramatic price growth, with annual increases ranging from 11.8% to 19.2% depending on district and property type during the past year.
Over the past five years, prices have more than doubled in many segments, with some central and gentrifying districts seeing even higher appreciation rates. This exceptional growth has been driven by limited supply, strong domestic demand, government housing incentives, and rising construction costs.
The most significant increases occurred in gentrifying districts like Józsefváros (District VIII) and Angyalföld (District XIII), where infrastructure improvements and urban renewal projects have attracted investors and young professionals. Central districts have shown more moderate but consistent growth.
Construction material inflation and labor shortages have particularly impacted new-build prices, contributing to the widening gap between new and existing properties. Government policies supporting first-time homebuyers have also increased demand pressure across all price segments.
What is the forecast for apartment prices in Budapest in 1, 5, and 10 years?
Budapest apartment prices are likely to continue strong growth with annual increases of 10% to 15% expected over the next year due to persistent demand and supply constraints.
Over five years, prices could rise 50% or more if current trends persist, though this depends heavily on economic conditions, interest rates, and government housing policies. The city's growing reputation as a tech hub and tourist destination supports continued appreciation.
Ten-year forecasts suggest prices could potentially double, though this projection carries significant uncertainty. Factors including EU economic integration, infrastructure development, and population growth trends will influence long-term price trajectories.
Market analysts expect gentrifying districts to outperform central areas in percentage terms, while outer districts may see more moderate but steady appreciation. Supply constraints are likely to persist, supporting continued price pressure across all segments.
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What are the most expensive, upcoming, and budget-friendly areas for buying an apartment?
The most expensive areas center around Districts V (Belváros), II, and XII on the Buda side, where prime properties command premium prices for their prestigious addresses and historic significance.
Upcoming and gentrifying districts offer the best investment potential:
- Józsefváros (District VIII): Central location undergoing major renovation and gentrification, popular with young professionals and investors
- Angyalföld (District XIII): Benefits from new metro extensions and infrastructure projects, showing rapid price appreciation
- Kőbánya (District X): Green spaces and revitalized industrial areas attracting families and developers
- Rákospalota (northern Pest): Suburban charm with infrastructure upgrades making it attractive to families seeking value
- Ferencváros (District IX): Growing cultural scene and proximity to universities driving young professional demand
Budget-friendly options include Districts XXIII (Soroksár), XV, XXI in outer Pest, and selected areas of District VIII. These locations offer significantly lower entry costs while maintaining good transport connections to the city center.
What are example purchase prices for typical 1-bedroom, 2-bedroom, and 3-bedroom apartments?
Apartment prices vary dramatically by location, with central districts commanding premium rates while outer areas offer more affordable options.
| Apartment Type | District V (Central) - HUF | District XXIII (Suburban) - HUF | Size |
|---|---|---|---|
| 1-bedroom (new) | 79,000,000 | 31,000,000 | ~40 m² |
| 1-bedroom (used) | 45-50,000,000 | 25,000,000 | ~40 m² |
| 2-bedroom (new) | 118,000,000 | 47,000,000 | ~60 m² |
| 2-bedroom (used) | 70-80,000,000 | 38,000,000 | ~60 m² |
| 3-bedroom (used) | 134,000,000 | 63,000,000 | ~80 m² |
These examples demonstrate the substantial price differences between central and suburban locations. A 1-bedroom apartment in the historic center costs more than twice as much as a similar property in outer districts.
Condition and building age significantly impact prices within the same district. Renovated older apartments often provide better value than new builds while offering character and larger rooms typical of pre-war construction.
What are the additional costs involved when buying an apartment, including taxes, legal fees, and renovation?
Transfer tax represents the largest additional cost at 4% of the property's market value, paid by the buyer during the purchase process.
Legal fees typically range from 1% to 2% of the purchase price plus VAT, covering contract review, due diligence, and transaction completion. Realtor's commission varies from 1.5% to 5% of the purchase price plus VAT, depending on the agency and property type.
Land registry fees cost approximately HUF 10,600 for standard registration, with higher fees for expedited processing. Non-EU citizens must obtain a property acquisition permit costing HUF 50,000.
Renovation costs vary widely depending on property condition and desired improvements. Older apartments may require HUF 200,000 to HUF 500,000 per square meter for complete modernization, including plumbing, electrical, and heating system updates.
Additional expenses include property valuation fees, bank charges for mortgage processing, and insurance costs. Budget an additional 8% to 12% of the purchase price for all transaction-related expenses excluding renovation.
How do mortgage conditions currently look for local and foreign buyers in Budapest?
Hungarian banks typically offer maximum loan-to-value ratios of 50% to 75% for residential mortgages, depending on the borrower's profile and income verification.
EU nationals generally access similar mortgage terms as Hungarian residents, while non-EU citizens face stricter requirements including higher down payments and additional documentation. Interest rates average around 7% for 20-year fixed-rate mortgages as of mid-2025.
Required documentation includes proof of income, bank statements, employment agreements, and for foreigners, a registered Hungarian address. Banks prefer borrowers with stable employment history and debt-to-income ratios below 40%.
Government programs support first-time homebuyers with reduced down payment requirements and subsidized interest rates. Young families may qualify for additional incentives including partial loan forgiveness for mortgage principal.
Foreign buyers should establish Hungarian bank relationships early in the process, as this facilitates mortgage approval and demonstrates commitment to local investment.
What are the smartest apartment investment options today: living, renting long-term, renting short-term, or reselling later?
Long-term rental provides steady returns with yields averaging 4% to 7% in central districts, offering reliable cash flow and professional tenant relationships.
Short-term rental through platforms like Airbnb can generate higher returns in central and trendy neighborhoods but requires active management and faces regulatory restrictions in some districts. Tourist areas and business districts show the strongest short-term rental demand.
Owner-occupancy makes sense for buyers planning to live in Budapest long-term, benefiting from strong capital appreciation while avoiding rental management responsibilities. This strategy works well in gentrifying districts with improving infrastructure and amenities.
Reselling focuses on capital appreciation, particularly effective in upcoming areas with infrastructure development or gentrification potential. Investors targeting resale should focus on properties with renovation potential or locations benefiting from urban development projects.
Gentrifying districts like Józsefváros and Angyalföld offer the best potential for all strategies, combining rental yield opportunities with strong capital appreciation prospects.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Hungary versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How does the price per square meter in Budapest compare with similar European cities like Prague, Warsaw, and Bucharest?
Budapest remains 15% to 30% cheaper than major Central European capitals like Prague, Warsaw, and Bratislava, while commanding higher prices than Bucharest.
| City | Average Price per m² (€) | Position |
|---|---|---|
| Prague | 4,600-5,600 | Most expensive in region |
| Warsaw | 4,300 | Higher than Budapest |
| Bratislava | 4,000 | More expensive than Budapest |
| Budapest | 3,000-3,700 | Rapidly growing, good value |
| Bucharest | 2,200-2,700 | Cheapest major CEE capital |
This pricing position makes Budapest attractive for investors seeking Central European exposure without Prague's premium pricing. The city's rapid growth suggests this price gap may narrow over time.
Quality of life factors, tourism infrastructure, and EU membership status support Budapest's competitive position relative to neighboring capitals. The city offers better value than western European capitals while maintaining developed market characteristics.
What apartment types and areas give the best return on investment in Budapest right now?
Gentrifying districts provide the strongest ROI potential, combining rental income opportunities with significant capital appreciation prospects.
Renovated older apartments in areas like Józsefváros, Angyalföld, and Kőbánya offer excellent investment potential for both long-term rental and eventual resale. These properties benefit from character features and larger spaces while riding neighborhood improvement trends.
New builds in central or upcoming districts focus on capital appreciation, particularly suitable for investors with longer time horizons and higher risk tolerance. Premium developments in Districts V and II target high-end rental markets and international buyers.
Short-term rental investments perform best in central Districts V and VII, plus trendy areas of District VIII near universities and cultural attractions. These locations benefit from strong tourist and business traveler demand.
Outer districts with infrastructure upgrades, such as areas near new metro extensions, provide emerging opportunities for patient investors willing to wait for development completion and neighborhood transformation.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Budapest's apartment market offers compelling opportunities for both owner-occupiers and investors, with strong fundamentals supporting continued price appreciation.
Gentrifying districts provide the best combination of rental yields and capital growth potential, while central areas offer prestige and stability for long-term investment strategies.
Sources
- InvestRopa - Budapest Price Forecasts
- InvestRopa - Hungary Price Forecasts
- Imigrant Hungary - Real Estate Prices
- Realting - Hungarian Real Estate Market
- Connecting Region - Budapest Price Increases
- InvestRopa - Budapest Investment Areas
- Golden Visa Lawyers - Property Tax
- Tranio - Hungary Mortgage Conditions
- Numbeo - Budapest Cost of Living
- Global Realty Group - Real Estate Investment 2025