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
Why is Budapest emerging as a prime destination for property investment in 2025? Is it the attractive rental yields, the vibrant cultural scene, or the affordability compared to other European capitals? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Budapest's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Budapest’s lively nightlife makes central apartments highly sought after
Budapest's nightlife is a magnet, drawing both locals and tourists to its lively scene.
The demand for centrally located apartments has surged as people want to be near the action. In 2023, rental yields for apartments in Budapest saw a significant boost, with rents increasing by 12.55% from the previous year. This jump is largely due to the strong desire for city living, especially in areas buzzing with nightlife.
High occupancy rates in city center properties are a testament to this trend. In 2023, over half of rental ads were for properties in the capital, highlighting the popularity of these areas. Young people and professionals, in particular, show a clear preference for living near entertainment venues, driving the demand for these centrally located apartments.
The rise of short-term rental platforms like Airbnb in central locations further emphasizes the high demand for properties in vibrant city areas. Despite some restrictions on short-term rentals, these platforms continue to thrive, underscoring the appeal of living in the heart of the city.
Budapest's nightlife is not just about bars and clubs; it's a cultural experience that includes live music, theater, and unique dining options. This diverse entertainment scene makes living in the city center even more attractive, as residents have easy access to a wide range of activities.
For those considering buying property in Budapest, understanding these trends is crucial. The city's vibrant nightlife and the resulting demand for centrally located apartments offer a promising opportunity for investment.
Sources: Budapest Invest, We Love Budapest
2) Properties with views of the Danube River are more valuable
Properties with Danube River views in Budapest are highly sought after.
In districts like I, II, V, and XII, homes with these views can fetch up to €5,500 per square meter, a stark contrast to the city's average resale price of €2,200. This premium is not just about the view; it's about the lifestyle and prestige that come with it.
Real estate agents often emphasize the allure of Danube views, noting that buyers are eager to pay extra for such properties. Whether it's a sprawling estate or a cozy flatlet, the demand is consistently high, pushing prices upward.
The Danube isn't just a river; it's a magnet for tourists, which in turn boosts the appeal of properties overlooking it. This attraction means higher rental rates for these homes, as they offer a unique and desirable living experience.
Living by the Danube means more than just a pretty view; it's about being part of a vibrant community that thrives on the river's charm. The demand for these properties is fueled by the river's status as a major tourist draw, making them a sound investment.
For those considering a purchase, it's worth noting that the Danube's allure isn't just a passing trend. The river's beauty and the lifestyle it offers continue to drive strong interest and investment in the area.
Sources: Daily News Hungary, Immigrant Invest
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.
3) Budapest’s festivals and events bring in a constant stream of visitors
Budapest's festivals and events are a magnet for tourists, drawing crowds from all over.
Take the Sziget Festival in 2023, for example. During this time, hotel occupancy rates in Budapest soared, with room prices jumping by 50% compared to other times in July and August. This surge in demand for accommodation is a clear sign of the festival's impact.
In 2023, Budapest boasted the second-highest Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) among Central and Eastern European capitals. This highlights the high hotel occupancy rates during these vibrant events. Short-term rentals also saw a significant price hike during major events like the Sziget Festival, showing just how much demand increases.
Local government reports back this up, showing that tourism revenue from festivals is substantial. In 2022, hotel revenues in Budapest hit HUF 668 billion, marking a 52% increase from 2021. Catering revenues also rose by 42%, painting a picture of a thriving hospitality sector.
Visitor numbers tell the same story. In 2022, nearly 6.9 million tourists flocked to Budapest, a strong recovery from the pandemic's impact. These spikes in visitor statistics during event periods underline the city's appeal.
For anyone considering buying property in Budapest, these festivals and events are more than just entertainment—they're a key driver of the local economy, ensuring a steady stream of visitors and potential renters.
Sources: My Lighthouse, Horwath HTL, Budapest Adventures
4) Budapest’s famous thermal baths attract tourists, boosting your rental opportunities
Budapest's thermal baths and spas are a huge draw, attracting millions of visitors each year.
In 2024, these iconic baths saw over 3.8 million visitors, underscoring their vital role in boosting the city's tourism. The charm of Budapest's spa culture is irresistible, especially to international travelers.
In September 2024, 87% of guest nights were booked by foreign tourists, showing a clear trend: people from all over the world are flocking to Budapest. This influx has naturally spiked the demand for places to stay, with short-term rentals becoming particularly popular.
Budapest's spas aren't just about relaxation; they're also a financial powerhouse. In 2024, these spas generated substantial revenues and profits, contributing significantly to the local economy.
The government is keen on keeping this momentum going. They've been investing in improving the quality and competitiveness of services related to these thermal baths, ensuring that Budapest remains a top destination for spa enthusiasts.
For anyone considering buying property in Budapest, the thriving spa culture offers a unique opportunity. The continuous flow of tourists seeking the city's famous baths means consistent rental opportunities for property owners.
Sources: Budapest Tourism Statistics - How Many Tourists Visit? (2024), Hungarian Tourism Sees 20 per cent Revenue Increase in September, Budapest's baths raise prices but will offer even more in 2025
5) Budapest’s historic charm draws tourists for extended stays
Budapest's rich history and heritage sites have been a magnet for long-term tourists, especially in recent years.
In 2022, nearly 6.9 million tourists visited the city, drawn to iconic spots like Buda Castle and the Hungarian Parliament Building. This influx of visitors shows just how much people love Budapest for its historical charm.
The tourism boom has also been great for the local economy. Last year, hotel revenues jumped to HUF 668 billion, a 52% increase from the previous year, highlighting the growing interest in Budapest's cultural and historical offerings.
For those planning to stay a while, Budapest offers plenty of long-term rental options. Platforms like Airbnb and Nestpick provide accommodations with amenities such as laundry services and free WiFi, making it easy for tourists to settle in and explore the city's rich heritage.
The government is also playing its part by preserving and promoting historical sites. The Budapest Convention Bureau is committed to sustainability and cultural promotion, ensuring that the city's historical treasures remain a focal point for tourists.
With all these efforts, it's no wonder that Budapest continues to attract visitors who are eager to dive into its past and enjoy its vibrant present.
Sources: Budapest Adventures, Airbnb, Budapest Convention Bureau
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6) Budapest’s booming tech scene draws young professionals looking for homes
Budapest's tech scene is booming, drawing in young professionals eager for housing.
With startups like SEON leading in fraud prevention and securing significant funding, the city is becoming a tech hub. Companies such as aiMotive and Commsignia are also gaining attention in the global AI and autonomous driving sectors.
The Hungarian government is backing this growth with initiatives like the Startup Factory, which supports early-stage tech firms. This has led to a surge in foreign direct investment, further propelling the tech sector.
Budapest's tech ecosystem has seen a 41% growth in value from 2021 to 2023, making it a hotspot for affordable talent in Europe. This attracts young professionals seeking job opportunities and a vibrant urban lifestyle.
As the tech industry expands, so does the demand for tech-related jobs, making Budapest a top destination for those in the field.
Sources: Startup Genome, Startup Genome, Mordor Intelligence
7) With better healthcare facilities, the city is becoming a top choice for retirees
Budapest is becoming a hotspot for retirees, thanks to its improving healthcare facilities.
In recent years, the city has seen a massive investment in healthcare infrastructure, with the Hungarian government pouring HUF 88 billion (USD 248 million) into the sector. This funding is part of the Healthy Budapest Program, which aims to modernize 11 national institutions, 13 hospitals, and 32 specialized clinics. Such improvements are making Budapest a more attractive option for those looking to retire in a place with reliable healthcare.
What's more, Budapest is embracing cutting-edge medical technologies. The city is expected to benefit from U.S.-made advancements in diagnostics and medical imaging systems. This focus on modern technology ensures that retirees have access to high-quality care, which is a top priority for many when choosing a retirement destination.
Specialized healthcare services are also expanding, with efforts to reduce waiting times for CAT scans and MRI exams. The Healthy Budapest Program has allocated additional funds to tackle these issues, making it easier for retirees to access the comprehensive healthcare they need.
These developments are not just about infrastructure; they reflect a broader commitment to enhancing the quality of life for retirees in Budapest. The city's healthcare improvements are a significant draw for those considering a move to the country.
With these advancements, Budapest is positioning itself as a city that not only offers cultural richness and historical charm but also top-notch healthcare services for its residents.
8) Budapest’s booming startup scene means more people want modern living spaces
Budapest is buzzing with 290 startups, making up 69% of Hungary's total.
This surge in startups means more people are flocking to the city, boosting the demand for modern living spaces. Entrepreneurs and their teams are looking for places that match their dynamic lifestyles.
The Hungarian Innovation Agency, teaming up with Startup Genome, has shown a 41% annual growth in Ecosystem Value from 2021 to 2023. This growth is not just numbers; it's backed by more venture capital flowing into the city, drawing even more talent and increasing the need for contemporary housing.
Big names in tech like Cloudera, Transferwise, and BlackRock are setting up shop in Budapest, creating a wave of new jobs. This influx of tech opportunities is pushing employment rates up, and with it, the demand for modern living spaces to house this growing workforce.
Budapest's tech and innovation sectors are on the rise, making it a hot spot for professionals seeking vibrant urban living. The city's growing startup scene is a magnet for those wanting to be part of a thriving entrepreneurial ecosystem, increasing the need for modern accommodations.
With all these developments, Budapest is not just a place to work but a place to live, attracting a diverse crowd eager to be part of its exciting growth story.
Sources: Startup Genome, StartupBlink, Tech Bullion
We have made this infographic to give you a quick and clear snapshot of the property market in Hungary. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Budapest’s central location boosts its connectivity and attractiveness
Budapest is a prime spot in Central Europe, boosting its connectivity and appeal.
In recent years, more international companies are setting up shop in Budapest, thanks to a surge in foreign direct investment. This trend is a testament to Budapest's growing reputation as a business hub, where companies find a strategic advantage in its central location.
The Budapest Ferenc Liszt International Airport is a key player in this connectivity, with passenger traffic soaring by an impressive 14.5% annually. This growth outpaces the EU market average and is set to continue with plans to expand and modernize the airport, making it even easier to reach the city from anywhere in the world.
Getting around Budapest is becoming more convenient too. The city's public transportation is seeing major upgrades, like the extension of Metro Line M1 and new tram lines. These projects, partly funded by the European Union, aim to make travel between the suburbs and the city center smoother and faster.
These improvements are not just about convenience; they reflect Budapest's commitment to enhancing its infrastructure to support its growing role as a central European hub. With these developments, the city is not only more accessible but also more attractive to both businesses and tourists.
As Budapest continues to evolve, its strategic location and improved connectivity make it a compelling choice for those looking to invest in property or business in the region.
Sources: Hungary Today, International Airport Review
10) With Budapest’s great public transport, every area is easy to reach and attractive
Budapest's public transportation system makes every corner of the city easy to reach and attractive to live in.
Imagine hopping on one of the 2,200 vehicles that hit the streets daily, whisking you to any of the 5,600 stops scattered across the city. Whether it's the four metro lines, 16 railway lines, 30 tramway lines, or 15 trolleybus lines, this network covers over 1,400 km, ensuring you can get anywhere you need to go.
Tram lines 4 and 6 are a commuter's dream, boasting one of the highest service frequencies in Europe. With buses running every 6-10 minutes during the day, you can count on short commuting times, making your daily travel hassle-free and efficient.
The Hungarian government is not just sitting back; they're actively investing in the public transport system. New air-conditioned, low-floor trams are being introduced, making rides more comfortable and accessible. This modernization effort is part of a broader push to make public transport more environmentally friendly, aligning with the city's green goals.
These improvements are not just about comfort; they're about making electric transport more appealing to everyone. The city's commitment to enhancing public transport is evident in these ongoing upgrades, ensuring that residents and visitors alike have a pleasant travel experience.
Sources: BKK in Numbers, Euronews, Railway Pro, Housing Anywhere, EMTA
11) Budapest’s historic architecture draws both tourists and investors
Budapest's historic architecture is a major draw for both tourists and investors.
In 2022, the city welcomed nearly 6.9 million tourists, and the numbers are expected to keep rising. This surge is largely due to Budapest's stunning architectural beauty, which captivates visitors from all over the globe.
In the heart of Budapest, property prices are soaring. In District II and District V, prices reach €231,000 and €222,000 per square meter, respectively. This indicates a strong demand for real estate in these historic areas, making them attractive to investors seeking profitable ventures.
Architectural tours are booming, and Budapest's iconic sites like the Gellért Baths and Castle Hill are frequently featured in the media. This widespread attention makes the city's historic architecture a must-see for tourists and a smart investment for real estate buyers.
Investors are particularly drawn to Budapest's unique blend of history and modernity. The city's architecture not only tells a story but also offers lucrative opportunities for those looking to invest in a vibrant and growing market.
With its rich history and architectural charm, Budapest continues to be a hotspot for both tourism and real estate investment, offering a unique blend of cultural allure and financial potential.
Sources: Imigrant Hungary, Airbtics, Corinthia, Budapest Adventures, ISARO
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12) Budapest’s universities attract international students, making it easy to find renters
Budapest is buzzing with international students, creating a booming demand for places to live.
In 2023, Hungarian universities experienced a remarkable surge, with enrollments jumping by 28% compared to the previous year. This trend is a clear sign that more student housing is needed to accommodate this influx.
By the 2023/2024 school year, 37.5 thousand international students were studying in Hungary, marking a steady rise. This growing number of students means the city needs to expand its accommodation options.
Even though dorms in Budapest are packed, they remain a more budget-friendly choice than renting an apartment. This affordability highlights the urgent need for more student housing, as demand is outstripping supply.
With universities drawing students from all over the world, the city is feeling the pressure to provide enough living spaces. The current situation shows that the demand for student accommodation is only going to grow.
As Budapest continues to attract international students, the housing market is adapting to meet their needs. The city's vibrant academic scene is a major draw, and more housing projects are on the horizon to keep up with this demand.
Sources: Study in Hungary, Hungary Today, Statista
13) With more co-working spaces, Budapest is ideal for remote workers
Budapest is buzzing with a booming number of co-working spaces, perfect for remote workers.
Companies like IWG are expanding rapidly, adding spots like Regus Infopark and HQ F99, offering over 3,000 square meters of flexible workspace. This is a response to the growing demand for high-quality co-working environments in the city.
The shift towards hybrid working models is driving this demand. Businesses are moving away from traditional offices, opting for flexible spaces to meet their needs. This trend is in line with the surge in remote workers in Hungary, jumping from 36,000 in 2019 to over 151,000 in 2023.
Budapest is not just about workspaces; it's a top choice for remote work, crowned as the top 'workcation' city for 2024. The city offers excellent transport, affordable living, and fast internet, making it a haven for digital nomads.
With its wealth of flexible workspaces, Budapest is an ideal spot for those looking to blend work and travel. The city's infrastructure supports a seamless remote working experience, attracting professionals from all over.
Whether you're a freelancer or part of a remote team, Budapest's co-working scene is thriving, offering a dynamic and supportive environment for all your professional needs.
Sources: IWG Announces Expansion in Hungary With 3 New Openings, Hungary: number of people working remotely regularly 2023 | Statista, Budapest crowned world's top 'workcation' city for 2024 - HRreview
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.