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Yes, the analysis of Budapest's property market is included in our pack
Budapest property prices are experiencing explosive growth, with annual increases reaching 19.2% in early 2025.
The average price per square meter for residential properties in Budapest has climbed to HUF 1.27 million (approximately EUR 3,150), marking historic highs. New construction apartments now command HUF 1.68 million per square meter, making Budapest's real estate market one of Europe's fastest-growing.
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Budapest property prices are surging dramatically in 2025, with annual growth of 19.2% and new apartments averaging HUF 1.68 million per square meter.
The market shows signs of overheating, with 18% of properties selling above asking price, though Hungary remains more affordable than other CEE capitals.
| Metric | Current Value (June 2025) | Year-over-Year Change |
|---|---|---|
| Average Price per m² (All Properties) | HUF 1.27 million | +19.2% |
| Average Price per m² (New Apartments) | HUF 1.68 million | +13.04% |
| Average Property Purchase Price | HUF 74.8 million | +21% |
| Most Expensive District (V) | HUF 1.98 million/m² | +15% |
| Most Affordable District (XXIII) | HUF 785,000/m² | +12% |
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.
How much have Budapest property prices increased in 2025?
Budapest property prices have skyrocketed in 2025, with increases far exceeding national averages.
As we reach mid-2025, the Budapest residential market has recorded an annual price growth of 19.2%, with a remarkable quarterly increase of 8.7% in Q1 2025 alone. This represents a significant acceleration from previous periods, as Budapest continues to outpace the national average growth rate of 15.0%.
The momentum has been particularly strong in the first half of 2025. House prices in Budapest rose by 6% in just the first two months of the year, nearly matching the entire growth rate of 2024. Month-over-month data shows Budapest prices climbing 2.4% in December 2024, triple the national average of 0.8%.
For context, an average property purchase in Budapest now costs HUF 74.8 million (EUR 185,832), representing a 21% increase from June 2024. New construction properties are even more expensive, with average square meter prices reaching HUF 1.68 million.
The rapid price appreciation reflects strong demand from both domestic and international buyers, limited housing supply, and favorable government policies supporting home purchases.
Which Budapest districts have seen the biggest price increases in 2025?
District XI (Újbuda) leads Budapest with the highest price growth, experiencing 18-20% annual increases.
This southwestern district has benefited from numerous new residential developments that have elevated prices for both new and existing properties. The influx of modern apartment complexes has transformed Újbuda into one of Budapest's most dynamic real estate markets.
District XIV (Zugló) follows closely with 12% growth, pushing average prices to HUF 889,000 per square meter. The anticipated Grand Budapest development project has generated significant investor interest, driving prices higher even before construction begins. Central districts like District V (Belváros-Lipótváros) and District II have seen steady 15% annual growth, maintaining their status as premium locations.
Even traditionally affordable outer districts have experienced double-digit growth. Districts like XVII and XVIII, which historically offered budget-friendly options, have seen prices rise by 10-12% as buyers seek alternatives to expensive central areas.
It's something we develop in our Hungary property pack.
What are the current average property prices per square meter in Budapest?
The average price per square meter for all residential properties in Budapest has reached HUF 1.27 million as of June 2025.
Breaking this down by property type reveals significant variations. Used apartments currently average HUF 1.17 million per square meter (approximately EUR 2,900), while new construction commands a premium at HUF 1.68 million per square meter. This represents a substantial gap of over 40% between new and existing properties.
| District | Average Price per m² | Property Type |
|---|---|---|
| District V (Belváros) | HUF 1.98 million | Mixed (Premium) |
| District II | HUF 1.77 million | Mostly Houses/Villas |
| District XII | HUF 1.77 million | Family Homes |
| District XIII | HUF 1.35 million | Modern Apartments |
| District XIV (Zugló) | HUF 889,000 | Mixed Residential |
| District XXIII (Soroksár) | HUF 785,000 | Suburban Houses |
The most expensive locations remain in the historic center, with District V approaching HUF 2 million per square meter for quality properties. Meanwhile, southeastern border districts like Rákosmente, Pestszentlőrinc, and Soroksár offer the most affordable options, with prices below HUF 700,000 per square meter.
Premium new developments in District II can exceed HUF 3.4 million per square meter, while more modest new construction in Districts XV and XX starts at around HUF 1 million per square meter.
How do new apartment prices compare to existing properties in Budapest?
New apartments in Budapest command a significant premium, averaging 44% more expensive than existing properties.
As of June 2025, new construction apartments average HUF 1.68 million per square meter, compared to HUF 1.17 million for used properties. This price gap has widened considerably from previous years, driven by modern amenities, energy efficiency standards, and contemporary designs that new developments offer.
The market has reached a historic milestone in Q1 2025, where new properties under HUF 1 million per square meter have become virtually unavailable in Budapest. Even in traditionally affordable districts, new construction rarely falls below this threshold. Premium new developments in central areas regularly exceed HUF 2.5 million per square meter, with luxury projects in District II reaching HUF 3.4 million.
Interestingly, while new properties command higher absolute prices, used apartments have experienced stronger percentage growth rates. Used dwellings saw 15.18% year-on-year price increases, compared to 13.04% for new construction, suggesting a narrowing of the price gap as the used property market catches up.
The highest proportion of property sales now occurs in the HUF 1.6 million+ per square meter category, representing a fundamental shift in market dynamics from previous years when mid-range properties dominated transactions.
What are the Budapest property price forecasts for 2026?
Property prices in Budapest are expected to continue rising in 2026, with forecasts suggesting 7-10% growth for used apartments.
Expert predictions indicate that the Budapest residential market will maintain its upward trajectory, though at a slightly moderated pace compared to the explosive growth of 2025. For used apartments, price increases between 4-13% are forecast, with most analysts converging on a 7-10% average rise. New apartment prices could see increases of 4-15%, typically around 9%.
Several factors support these optimistic forecasts. The Hungarian economy is positioned for continued recovery, with GDP growth projected at 2.6% for late 2025. High employment levels and dynamic wage growth, which saw real income increase by 7-8% in early 2024, continue to support housing demand. Additionally, new government policies allowing pension savings to be used for housing purchases are expected to inject substantial capital into the market.
Property transactions nationwide could increase by 20-30% in 2026, with Budapest representing approximately 40% of all transactions. Some analysts predict even stronger growth, with double-digit price increases ranging from 10% to as high as 20% in premium districts.
It's something we develop in our Hungary property pack.
Which property types are experiencing the fastest price growth in Budapest?
Studio apartments and one-bedroom units in central Budapest districts are seeing the most rapid price appreciation.
These smaller properties have experienced annual price growth exceeding 20% in prime locations like Districts V, VI, and VII. The surge is driven by strong demand from young professionals, international workers, and investors targeting the short-term rental market. Studios in District V now average HUF 45-50 million, up from HUF 37-40 million just one year ago.
Family-sized apartments (3+ bedrooms) in emerging districts represent another fast-growing segment. Districts XI and XIII have seen 18-20% annual growth for larger units, as families seek modern living spaces with good infrastructure. New three-bedroom apartments in these areas now start at HUF 120 million, compared to HUF 100 million in 2024.
Renovated historical properties in Districts I and II are experiencing exceptional growth, with some properties appreciating 25% annually. These unique homes appeal to wealthy buyers seeking character properties with modern amenities. Premium renovations in castle district townhouses can now exceed HUF 5 million per square meter.
Conversely, panel apartments (socialist-era concrete buildings) show the slowest growth at 8-10% annually, though even this represents substantial appreciation in historical terms.
How does Budapest compare to other Central European capitals in 2025?
Budapest remains more affordable than most CEE capitals despite having the fastest growth rate in the region.
| City | Average Price per m² | Years of Salary for 50m² Apartment | 5-Year Growth Rate |
|---|---|---|---|
| Prague | HUF 2.2 million | 11.7 years | +95% |
| Warsaw | HUF 1.5 million | 9.8 years | +78% |
| Bratislava | HUF 1.4 million | 8.9 years | +82% |
| Budapest | HUF 1.1 million | 7.7 years | +187% |
| Bucharest | HUF 850,000 | 6.5 years | +65% |
While Budapest's absolute prices remain lower than Prague, Warsaw, and Bratislava, its growth trajectory is unmatched. Hungary has led the EU with a 187% price increase since 2015, compared to the EU average of 51%. This positions Budapest for continued convergence with more expensive regional capitals.
The affordability advantage makes Budapest increasingly attractive to regional investors. Using average local wages, Hungarians need 7.7 years of salary to buy a 50m² apartment in Budapest, compared to 11.7 years in Prague. This relative affordability, combined with rapid appreciation, creates a compelling investment case.
Budapest offers 30% better value than Lisbon for property purchases, attracting European investors seeking affordable entry points into dynamic markets. The combination of EU membership benefits, strategic location, and ongoing infrastructure development supports continued demand from international buyers.
What impact are government housing subsidies having on Budapest prices?
Government housing subsidies, particularly CSOK Plus, are significantly inflating Budapest property prices by boosting demand without addressing supply constraints.
The CSOK Plus program distributed HUF 294.8 billion in 2024, creating substantial additional purchasing power in the market. While the total value of non-refundable housing support decreased from HUF 113.1 billion in 2022 to HUF 49.2 billion in 2024, the inclusion of supported loans brings the total impact to HUF 361.4 billion.
These subsidies have particularly benefited families with children purchasing new construction, contributing to the 13% annual price growth in the new apartment segment. However, the number of new loan contracts decreased from 18,100 in 2022 to 13,200 in 2024, suggesting the program may be reaching saturation.
Market analysts warn that policies prioritizing demand stimulation without addressing housing supply shortages are creating unsustainable price growth. The subsidies have effectively transferred public funds into higher property prices, benefiting existing homeowners and developers more than first-time buyers.
The introduction of new policies allowing pension savings for housing purchases in 2025 is expected to inject additional billions into the market, potentially accelerating price growth by another 10-20% according to some forecasts.
Are there signs of a housing bubble forming in Budapest?
Multiple indicators suggest Budapest's property market is overheating, though systemic financial risks remain limited.
The Hungarian National Bank estimates that housing prices exceeded fundamentally justified levels by 14.3% nationwide in Q4 2024. In Budapest specifically, an unprecedented 18% of properties sold above asking price in Q1 2025, indicating fierce competition among buyers and potentially irrational exuberance.
Housing prices are rising faster than rents, incomes, and construction costs—classic bubble indicators. The ratio of property prices to average incomes has reached historic highs, with the average Budapest property now costing 7.7 years of salary compared to 5.2 years in 2020. Rental yields have compressed to 4-5% in central districts, down from 6-7% three years ago.
However, the central bank considers the current situation less risky than previous bubbles because the surge is investor-driven rather than credit-fueled. Many transactions occur without loans, reducing systemic financial risk. Unlike the 2008 crisis, household debt levels remain manageable, and lending standards are relatively strict.
Some analysts warn of speculative excess in premium segments where prices have reached HUF 3-4 million per square meter. The market shows characteristics of unsustainable growth that historically precede corrections, though timing any potential downturn remains highly uncertain.
How is foreign investment affecting Budapest property prices?
International investors are driving significant price increases in Budapest's premium property segments.
The introduction of Hungary's Golden Visa program requiring €500,000 property investment has created substantial additional demand from wealthy international buyers. Foreign investors are particularly active in Districts I, II, V, and XII, where premium properties regularly sell to international buyers at prices 10-15% above local market rates.
Most foreign buyers are cash purchasers, making them less sensitive to interest rate changes and able to outbid local buyers relying on mortgages. This dynamic has pushed prices in premium segments to historic highs, with some luxury properties exceeding HUF 4 million per square meter.
Budapest's position as an EU capital offering residence permits through property investment attracts buyers from Asia, the Middle East, and non-EU European countries. The city remains 30% more affordable than Lisbon and 50% cheaper than Paris for comparable properties, making it attractive to European investors seeking value.
Foreign investment has created a two-tier market, with international buyer districts experiencing 20-25% annual growth while local buyer areas see more moderate 10-15% increases. This divergence is widening inequality and making central Budapest increasingly unaffordable for local residents.
It's something we develop in our Hungary property pack.
What are the long-term prospects for Budapest property prices through 2030?
Budapest property prices are projected to continue rising through 2030, with cumulative gains of 40-60% expected over the next five years.
Experts predict continued strong growth with nationwide price increases of 14-17% annually expected through 2025, moderating to 7-10% annually from 2026-2030. This trajectory would see average Budapest property prices reach HUF 2 million per square meter by 2030, approaching current Prague levels.
Several fundamental factors support this optimistic outlook:
- Hungary's EU membership providing continued economic integration and investment flows
- Budapest's strategic location as a regional business hub attracting multinational companies
- Ongoing infrastructure development including metro expansion and urban renewal projects
- Demographic shifts with millennials entering prime home-buying years
- Limited new housing supply relative to growing demand
The convergence story remains compelling—Budapest prices are still 50% below Vienna and 40% below Prague, suggesting room for catch-up growth. As Hungary's economy continues developing, property prices should gradually align with regional peers.
However, risks include potential interest rate increases, economic slowdowns, or policy changes that could moderate growth. The market's current pace of appreciation appears unsustainable long-term, suggesting periods of consolidation or modest corrections are likely within the broader upward trend.
How are rising interest rates impacting Budapest's property market?
Despite Hungary maintaining the region's highest interest rates at 6.5%, Budapest's property market continues its rapid ascent.
The apparent disconnect between high borrowing costs and surging prices reflects the market's unique dynamics. While mortgage rates have increased to 7-9% for variable rate loans, many buyers are circumventing this constraint through cash purchases or family assistance. The central bank notes that the housing demand surge is not primarily credit-driven, making traditional monetary policy less effective.
High interest rates have shifted market composition rather than cooling prices. Cash buyers now represent over 40% of transactions in premium districts, up from 25% in 2022. First-time buyers relying on mortgages have been largely priced out of central districts, concentrating their purchases in outer areas where prices remain below HUF 800,000 per square meter.
The European Central Bank's monetary policy has created mixed effects. While higher rates increased borrowing costs, they've also reduced government bond attractiveness, leading households to shift savings into real estate as an inflation hedge. With inflation estimated at 5.5% by year-end 2025, real estate offers protection against currency depreciation.
Stricter lending conditions implemented by banks have had minimal effect on prices since many transactions occur without loans. This suggests that any future rate cuts might accelerate price growth by bringing mortgage-dependent buyers back into the market.
We made this infographic to show you how property prices in Hungary compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Which areas offer the best value for property investment in Budapest?
Districts XIII, XI, and XIV offer the optimal combination of growth potential and current affordability for property investors.
District XIII (Angyalföld/Újlipótváros) stands out with average prices of HUF 1.35 million per square meter—below the city average but experiencing 15% annual growth. The district benefits from excellent transport links, ongoing development projects, and proximity to the city center. New metro connections and office developments are transforming formerly industrial areas into vibrant residential neighborhoods.
District XI (Újbuda) leads all districts with 18-20% annual growth while maintaining relatively affordable entry points around HUF 1.2 million per square meter. The combination of universities, new residential complexes, and improving infrastructure creates strong rental demand. The district offers diverse options from student studios to family apartments.
| District | Current Price/m² | Annual Growth | Rental Yield | Investment Appeal |
|---|---|---|---|---|
| XIII (Angyalföld) | HUF 1.35 million | 15% | 5.5% | High |
| XI (Újbuda) | HUF 1.2 million | 18-20% | 5.2% | Very High |
| XIV (Zugló) | HUF 889,000 | 12% | 6.0% | High |
| IX (Ferencváros) | HUF 1.1 million | 14% | 5.3% | Moderate-High |
| VIII (Józsefváros) | HUF 950,000 | 16% | 6.2% | High (with risks) |
For budget-conscious investors, outer districts like XVII (Rákosmente) and XVIII (Pestszentlőrinc) offer entry points below HUF 700,000 per square meter with steady 10-12% growth. These areas benefit from improving transport connections and serve as affordable alternatives for families priced out of central locations.
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.
Yes a lot - Budapest property prices are experiencing explosive growth with no signs of slowing down.
The data overwhelmingly confirms that Budapest's residential property market is in a strong upward trajectory. With annual growth of 19.2%, prices rising faster than incomes and rents, and 18% of properties selling above asking price, the market shows clear signs of rapid appreciation. While concerns about overheating exist, fundamental factors including EU membership, limited supply, government subsidies, and strong foreign investment continue driving prices higher. Based on current trends and expert forecasts predicting 7-10% annual growth through 2030, property prices in Budapest are definitively going up significantly.
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Sources
- Hungarian National Bank - Housing Market Report May 2025
- Global Property Guide - Hungary Price History
- Daily News Hungary - Budapest Current House Prices Report
- Reuters - Hungarian House Price Surge Analysis
- Xpat Loop - Budapest Regional Price Comparison
- Index.hu - Budapest District Price Analysis
- deVere Europe - Hungary's Housing Boom
- Hungary Golden Visa - Real Estate Market Overview
- Hungarian National Bank - Housing Market Report November 2024
- CRWW Group - Budapest Real Estate Market Analysis