Authored by the expert who managed and guided the team behind the Hungary Property Pack
Yes, the analysis of Budapest's property market is included in our pack
Budapest's property market has experienced remarkable growth in 2024-2025, with annual price increases reaching 15-19% in some segments. As we reach mid-2025, the Hungarian capital remains one of Europe's most affordable major cities for real estate investment, making it an attractive option for both investors and those looking to relocate.
The market fundamentals are strong: demand consistently outpaces supply, foreign investment continues to flow in, and the city offers excellent quality of life at a fraction of Western European costs. However, success in Budapest's property market requires careful planning, local expertise, and understanding of the regulatory landscape.
If you want to go deeper, you can check our pack of documents related to the real estate market in Hungary, based on reliable facts and data, not opinions or rumors.
Budapest's property market is experiencing significant growth with prices rising 15-19% annually in 2024-2025, making it an attractive investment destination.
The city offers excellent value compared to other European capitals, with average property prices around €185,000 and strong rental demand from expats and students.
| Aspect | Current Status | 2025 Outlook |
|---|---|---|
| Average Property Price | €185,000 (60.4M HUF) | 10-20% increase expected |
| Price per m² (Central) | €4,100+ | Continued growth |
| Rental Yields | 5-6% gross average | Stable but declining in center |
| Foreign Investment | Strong demand | Golden Visa program launched |
| Best Investment Areas | Districts V, VI, VII, IX | Up-and-coming districts gaining favor |
| Purchase Process | Permit required for non-EU | Streamlined with legal support |
| Market Trend | Seller's market | Gradual cooling expected |
How have Budapest property prices changed recently and what's expected next?
Budapest's residential property market has experienced dramatic growth over the past two years, with prices accelerating sharply from late 2023 into 2025.
The annual price growth in Budapest reached 15-19% in 2024-2025, with panel apartments seeing increases over 20%. This represents a significant acceleration from the brief slowdown experienced in 2022-2023. As of June 2025, the average price for residential property in Budapest stands at approximately 60.4 million HUF (€185,000).
New build properties are typically priced between €2,500-€3,500 per square meter, while properties in central districts can reach up to €5,500 per square meter. The citywide average sits around €2,700-€2,800 per square meter, with central districts commanding €4,100+ per square meter.
Looking ahead to the remainder of 2025, experts forecast continued price increases, though at a slightly slower pace as the summer season typically brings some cooling to the market. Transaction volumes and prices are projected to rise by 10-20% throughout 2025, driven by robust demand, limited supply, and favorable government policies.
It's something we develop in our Hungary property pack.
What are the major real estate trends in Budapest this year?
The Budapest property market in 2025 is characterized by several key trends that are shaping investor and buyer behavior.
Supply shortage is the dominant factor driving the market, with new residential completions down 15% year-on-year in 2024. This shortage has intensified competition among buyers, creating a seller's market where properties often sell rapidly above asking prices. Demand has surged due to maturing government bonds, falling yields on alternative investments, and strong foreign interest.
Foreign investment remains robust, particularly with the introduction of Hungary's Golden Visa program in 2025, which allows property purchases of €500,000 or more to qualify for residency. This has attracted additional international buyers to the market.
The market is showing signs of gradual cooling as we progress through 2025, with buyers gaining modest bargaining power during the summer months. However, the fundamental trend remains upward, with properties in desirable locations continuing to appreciate rapidly.
Rental demand has also strengthened, driven by the growing expat community and international students, though rental yields are declining in central areas as property prices outpace rental growth.
How does the property buying process work in Budapest for foreigners?
Buying property in Budapest as a foreigner involves several specific steps that must be followed carefully to ensure a successful transaction.
The process begins with property search and reservation, where you work with a reputable local real estate agent or lawyer to identify suitable properties. Once you find your desired property, you reserve it by paying a deposit (usually 10% of the purchase price, called "foglaló").
Next, you must hire a Hungarian lawyer or notary, as all transactions must be countersigned by qualified legal professionals. They will conduct due diligence, draft contracts, and manage the entire process. After signing a preliminary sale and purchase agreement, your lawyer checks the property's legal status, title, debts, and any encumbrances.
Non-EU/EEA citizens must apply for a property purchase permit from the local government office. This requires submitting documents including passport, preliminary agreement, title deed, criminal record certificate, and paying a fee of HUF 50,000-65,000. Processing typically takes 2-6 weeks.
Once the permit is granted, you sign the final contract and transfer the remaining funds. Your lawyer then registers the property with the Land Registry - ownership is only official after this step. Total transaction costs typically amount to around 10% of the property value, including the 4% property transfer tax, legal fees of 1-3%, and various administrative costs.
Where can you find reliable properties for sale in Budapest?
Finding reliable properties in Budapest requires using established agencies and platforms that cater to both local and international buyers.
Major real estate agencies include Tower International, which offers sales, rentals, and property management with multi-lingual staff. Maniv BP focuses specifically on investment properties and expat services, while Casatua Consulting specializes in search, purchase, and management services for foreigners. Other reputable agencies include Budapest Connections, Robertson Hungary, and Stay In Hungary, all with strong local and expat track records.
For online property searches, Ingatlan.com is the largest Hungarian property portal, listing both agency and private offers. Otthonterkep.hu is another major platform for sales and rentals. International-oriented websites include Rightmove, Properstar, Realestateinbudapest.com, Clarke and White, and Capital Real Estate, which provide English-language support.
For budget-conscious buyers, Propertyunder100k.com specializes in affordable properties across Hungary. It's important to work with agents who understand both local regulations and international buyer needs, as they can provide valuable guidance on district selection, legal requirements, and market timing.
What kind of property can you get for different budgets in Budapest?
| Budget Range | Property Type | Typical Location | Size/Features |
|---|---|---|---|
| €100,000 | Small studio or 1-bedroom | Outer districts, less central areas | 30-40 m², may need renovation |
| €150,000 | Renovated 1-bedroom | Semi-central districts | 40-50 m², good condition |
| €200,000 | Comfortable 1-2 bedroom | Central/inner districts | ~50 m², desirable central areas |
| €300,000 | Spacious 2-bedroom | Prime central locations | 60-80 m², high-quality finish |
| €500,000 | Luxury 2-3 bedroom | District V, Buda hills | 90-120 m², premium location |
| €750,000+ | High-end apartments/houses | Exclusive Buda districts | 120+ m², luxury amenities |
The price per square meter varies significantly by location, with outer districts averaging €2,000-€2,200 per m², up-and-coming areas around €2,500-€3,000 per m², and prime central locations exceeding €4,100 per m².
Don't lose money on your property in Budapest
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the common mistakes when buying in Budapest and how to avoid them?
Several critical mistakes can cost buyers significant money and time when purchasing property in Budapest.
The most serious mistake is not using an independent lawyer. This is essential for due diligence, contract review, and avoiding scams. Always hire your own Hungarian lawyer rather than relying solely on the seller's legal representation. Another major error is paying deposits before proper verification - only pay after legal checks are complete and consider using an escrow account for added security.
Many buyers make the mistake of relying solely on property portals, where listings may be outdated or misleading. Work with trusted agents who can provide current market information and access to properties not yet listed online. Ignoring building and legal issues is another costly error - always check for debts, communal ownership issues, renovation restrictions, and special property statuses like "bérleti jog" (inheritable tenancy).
Underestimating renovation costs is particularly common, especially in older buildings where costs can be high and timelines long. Get detailed quotes before purchasing and factor these into your budget. Not researching district-specific rules, especially for short-term rentals, can lead to regulatory violations and financial penalties.
Finally, not visiting the property and area multiple times at different hours and days can result in unpleasant surprises about noise, accessibility, or neighborhood conditions.
What's the cost of living like in Budapest compared to property ownership?
Budapest offers an attractive cost of living compared to other European capitals, making property ownership particularly appealing for long-term residents.
The monthly cost of living for a single person averages €650-€800 excluding rent, which is significantly lower than most Western European cities. Monthly rent for a one-bedroom apartment in central areas ranges from €600-€1,000, while outer districts offer rentals between €400-€600.
When comparing ownership versus renting, property ownership offers significant long-term advantages. While renting remains cheaper in the short term, property prices are rising faster than rental costs, meaning owners benefit from capital appreciation. The upfront costs of ownership are substantial, including the 10% transaction costs, but monthly ownership costs (maintenance, utilities, property tax) are typically lower than rental payments.
For international buyers, the favorable exchange rates and lower living costs mean their foreign income goes further in Budapest. Utilities, food, transportation, and services are all significantly cheaper than in Western Europe, making the overall cost of living very manageable even with property ownership expenses.
It's something we develop in our Hungary property pack.
Which areas of Budapest are best for different types of buyers?
| Area Type | Districts/Neighborhoods | Pros | Cons |
|---|---|---|---|
| Affordable | Outer Pest (XIV, XV), Kelenföld, outer VIII, IX | Lower prices, good transport, more space | Older buildings, less central, fewer amenities |
| Up-and-Coming | Ferencváros (IX), Józsefváros (VIII), Bartók Béla Avenue (XI) | Vibrant, young crowd, new developments | Still gentrifying, patchy quality |
| Central/Tourist | Districts V, VI, VII | Historic, excellent transport, amenities | Tourist crowds, noise, parking issues |
| Family/Upscale | Districts I, II, XII (Buda hills) | Green spaces, quiet, international schools | Highest prices, limited nightlife |
| Student/Rental | Districts VI, VII, VIII, IX, XIII | High rental demand, good yields | Transient population, wear and tear |
District V (Belváros/Lipótváros) is the most prestigious area offering safe capital appreciation but lower rental yields. Districts VI and VII provide central locations with vibrant nightlife but can be noisy and crowded. Districts II and XII offer green, quiet environments perfect for families, with luxury villas and proximity to international schools. District IX is rapidly improving with new developments and strong student populations.
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.
What's expat life really like in Budapest?
Budapest offers an exceptional quality of life for expatriates, combining European sophistication with affordable living costs and rich cultural experiences.
The lifestyle in Budapest is vibrant and cosmopolitan, with an excellent dining scene, active nightlife, and numerous cultural attractions. English is widely spoken in central areas and international business districts, making daily life comfortable for non-Hungarian speakers. The city boasts world-class museums, thermal baths, beautiful architecture, and a thriving arts scene.
Essential services are well-developed, with good healthcare facilities, numerous international schools, and efficient public transportation. The metro, tram, and bus systems are comprehensive and affordable, connecting all parts of the city effectively. Many expats find the bureaucracy slower than in Western countries, but most services are accessible in English, especially in areas with high expat populations.
Integration is generally smooth, particularly in central and Buda districts where international communities are well-established. The city hosts numerous expat groups, international business organizations, and cultural events that facilitate networking and social connections.
Day-to-day comfort is high, with a significantly lower cost of living compared to Western Europe while maintaining excellent infrastructure and services. The main challenges include navigating Hungarian bureaucracy and adapting to some cultural differences, but most expats find these manageable with time and local support.
What about long-term rental investment potential in Budapest?
Long-term rental investment in Budapest offers stable returns with strong tenant demand, though yields are moderating as property prices rise faster than rents.
The best target areas for long-term rentals include Districts VI, VII, VIII, IX, and XIII for their central and semi-central locations, as well as Buda districts for family tenants. These areas attract typical tenants including international students, young professionals, expats, and families seeking quality accommodations.
Tenant preferences strongly favor modern, renovated apartments with good transport connections, modern amenities, air conditioning, and fast internet. Properties near universities, business districts, or metro stations command premium rents and have lower vacancy rates.
Current rental yields average 5-6% gross, though this varies significantly by location and property type. Central areas may offer lower yields (3.5-4.5%) due to higher property prices, while semi-central and up-and-coming areas can achieve 6-8% yields. However, yields are generally declining as property prices appreciate faster than rental rates.
Rental levels for central one-bedroom apartments range from €700-€1,000 per month, while two-bedroom units rent for €1,200-€1,800 monthly. Outer districts typically offer 20-30% lower rents but may require longer to find quality tenants.
How viable are short-term rentals like Airbnb in Budapest?
Short-term rental investment in Budapest faces increasing regulatory challenges but can still be profitable in the right locations with proper management.
The best areas for short-term rentals are Districts V, VI, VII, IX, and parts of I and II, which attract tourists, business travelers, and visiting families of international students. These central locations offer easy access to major attractions, restaurants, and transportation hubs.
Expected returns vary significantly based on location and management quality, with well-located and professionally managed properties achieving 5-7% gross yields. However, returns are declining due to increased competition and tightening regulations.
Regulatory restrictions are the biggest challenge facing short-term rental investors. Some districts, including District VI, have voted to ban new Airbnb registrations from 2026. Other districts require special permits or homeowners' association approval. The regulatory landscape is constantly evolving, with increasing activism against short-term rentals in residential areas.
Success in short-term rentals requires staying current with local regulations, obtaining proper permits, maintaining high property standards, and professional management. The risks include potential regulatory bans, increased compliance costs, and community opposition.
It's something we develop in our Hungary property pack.
So is it actually worth buying property in Budapest in 2025?
Budapest presents a compelling investment opportunity in 2025, though success depends on your specific goals and careful market approach.
For those planning to live in Budapest, property purchase makes strong financial sense if you're staying several years. The city offers exceptional quality of life, affordable living costs, and strong long-term property appreciation potential. The combination of European sophistication and affordable prices makes it attractive for relocation.
For rental investment, the market offers moderate but declining yields in central areas, with stronger potential in up-and-coming districts. Long-term rental demand remains robust from expats and students, but investors should focus on emerging areas for better returns and accept more hands-on management requirements.
For capital appreciation and resale investment, Budapest's fundamentals remain strong with continued foreign investment, supply shortages, and government support. Property prices are expected to continue rising, though the market is becoming more competitive and some segments may face overvaluation risks.
The key caveats include the fast-moving market with tight supply and rising prices, making due diligence and local expertise essential. Regulatory risks, particularly for short-term rentals, require careful attention and up-to-date legal advice. Transaction costs of around 10% and the need for permits (for non-EU buyers) add complexity and expense.
Overall, Budapest remains one of Europe's most attractive capitals for real estate investment in 2025, offering strong fundamentals for both personal use and investment purposes, provided buyers approach the market with proper preparation and realistic expectations.
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 property market in 2025 offers significant opportunities for both investors and residents, with strong fundamentals driving continued growth despite increasing competition and regulatory challenges.
Success in this market requires careful district selection, professional legal support, and realistic expectations about yields and regulations, but the city's combination of affordability, quality of life, and investment potential makes it one of Europe's most attractive real estate markets.
Sources
- Global Property Guide - Hungary Price History
- InvestRopa - Budapest Real Estate Market
- Daily News Hungary - Buy Property in Budapest
- Remax Hungary - Hungarian Housing Market 2025
- Global Citizen Solutions - Buying Property in Hungary
- Global Property Guide - Hungary Buying Guide
- The Wandering Investor - Best Budapest Neighborhoods
- Numbeo - Cost of Living in Budapest
- MHomes - Guide to Budapest Districts
- The Wandering Investor - Budapest Real Estate Investment