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Yes, the analysis of Budapest's property market is included in our pack
Thinking about buying a 3-bedroom apartment in District V, Budapest? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like District XIII or District XI where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Hungary Property Pack.
Will property prices increase in Budapest in 2025?
Yes, property prices in Budapest are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Budapest remains an attractive city for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Budapest’s price growth are expected to persist.
Demand, especially in the central districts, continues to outpace supply, making significant price drops unlikely. Additionally, Budapest's status as a cultural and economic hub continues to attract buyers from around the world.
Signals pointing to a property price increase in Budapest
Here are some factors suggesting prices could increase:
The ongoing shortage of new housing developments in Budapest is expected to continue into 2025, particularly in high-demand areas. This limited supply, coupled with steady demand, is likely to drive up property prices.
Budapest is experiencing a surge in tourism and international interest, which is expected to continue in 2025. This increased attention is likely to boost demand for short-term rental properties, thereby increasing property values.
The Hungarian government is expected to continue offering incentives for homebuyers, such as favorable mortgage conditions and subsidies for families, which could stimulate demand and push prices higher.
Infrastructure improvements, including the expansion of public transportation networks, are set to enhance connectivity in Budapest. These developments are likely to increase the attractiveness of certain districts, leading to higher property prices.
The trend of urbanization and the movement of people from rural areas to Budapest is expected to persist, maintaining strong demand for housing in the city.
Budapest's growing reputation as a tech and startup hub is attracting young professionals and entrepreneurs, increasing demand for residential properties in the city.
The stability of the Hungarian economy, with expected GDP growth in 2025, is likely to support a healthy real estate market, contributing to rising property prices.
Signals pointing to a property price decrease in Budapest
Here are some factors suggesting prices could fall:
Rising inflation and living costs could strain household budgets, potentially reducing the purchasing power of local buyers and dampening demand for properties.
Higher interest rates could make mortgage financing more expensive, discouraging potential buyers and slowing down the property market.
Economic uncertainties, both globally and locally, could impact investor confidence, leading to a more cautious approach to property investments in Budapest.
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If property prices go up in Budapest, how much would they increase by?
If real estate prices in Budapest were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Budapest appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as district, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in District V for 100,000,000 HUF today, don't be surprised if it's priced between 103,000,000 and 107,000,000 HUF this time next year.
To give you a better understanding, here is a table that shows 7 types of Budapest real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (HUF) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Classic Apartment (60 sqm / 646 sqft) | 40,000,000 HUF | 41,200,000 HUF | 42,000,000 HUF | 42,800,000 HUF |
| Modern Apartment (75 sqm / 807 sqft) | 60,000,000 HUF | 61,800,000 HUF | 63,000,000 HUF | 64,200,000 HUF |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 150,000,000 HUF | 154,500,000 HUF | 157,500,000 HUF | 160,500,000 HUF |
| Studio (30 sqm / 323 sqft) | 20,000,000 HUF | 20,600,000 HUF | 21,000,000 HUF | 21,400,000 HUF |
| Loft (80 sqm / 861 sqft) | 80,000,000 HUF | 82,400,000 HUF | 84,000,000 HUF | 85,600,000 HUF |
| Townhouse (150 sqm / 1,615 sqft) | 200,000,000 HUF | 206,000,000 HUF | 210,000,000 HUF | 214,000,000 HUF |
| Investment Property (50 sqm / 538 sqft) | 50,000,000 HUF | 51,500,000 HUF | 52,500,000 HUF | 53,500,000 HUF |
Everything you need to know is included in our Property Pack for Budapest
If real estate prices go up in Budapest, which areas are likely to see the biggest increases?
Today, people who want to move to Budapest are looking for a blend of historical charm and modern amenities, which District V (Belváros-Lipótváros) offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in youthful, vibrant neighborhoods, and District VII (Erzsébetváros) has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Budapest market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| District V (Belváros-Lipótváros) | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| District I (Castle District) | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Budapest. |
| District VII (Erzsébetváros) | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| District XIII (Újlipótváros) | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| District XI (Újbuda) | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| District VIII (Józsefváros) | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| District IX (Ferencváros) | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| District VI (Terézváros) | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| District II (Rózsadomb) | Medium-High | Its proximity to the city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| District III (Óbuda) | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| District XII (Hegyvidék) | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Margaret Island | High | Upcoming restoration projects and high-profile cultural events are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Budapest
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Budapest?
In 2025, Budapest real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Budapest, such as Budaörs and Szentendre, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Budapest, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Budapest's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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