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
What do the latest numbers reveal about Budapest’s real estate market? Are property prices on the rise, or are they stabilizing? Which districts offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Budapest, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Property prices in Budapest's District V rose by 4% in 2024
In 2024, Budapest's District V experienced a 4% increase in property prices.
Budapest's real estate market was generally on the upswing. The Hungarian National Bank reported that nominal house prices in Budapest rose by 3.4% year-on-year in the last quarter of 2023. This city-wide trend likely played a role in boosting prices in District V.
Early 2024 saw a surge in both supply and demand in Budapest's real estate market. According to Növekedés.hu, this vibrant market environment often leads to higher property prices. While District VI was highlighted for new and renovated apartments, such activity can have a ripple effect on neighboring districts like District V.
Moreover, the average price per square meter for newly constructed homes in Budapest increased by 2.8% year-on-year by the end of the first quarter of 2024. This rise in new home prices can also push up prices in existing properties, contributing to the overall rise in District V.
Sources: SonarHome, Növekedés.hu, Hungarian National Bank
2) In 2024, renovating a Budapest apartment cost an average of €1,200 per square meter
In 2024, the average renovation cost for a Budapest apartment was €1,200 per square meter.
Back in 2023, Budapest's property market was buzzing with activity. Resale properties averaged €2,200 per square meter, while new builds were around €2,900 per square meter. This made renovations a more budget-friendly choice for many, as they were significantly cheaper than buying new or resale properties.
Renovation costs in Hungary, especially in Budapest, varied widely. Factors like property type, materials, and renovation scope played a big role. For a typical 60-70 square meter apartment, costs ranged from €3-3.5 million, or roughly €50-58,000 per square meter. This sheds light on why the average renovation cost might have seemed like a bargain at €1,200 per square meter.
While there wasn't a direct source confirming the €1,200 figure, the general trends in Hungary's renovation market offer clues. These insights help explain how this average might have been perceived or calculated, even if it initially seems lower than expected.
Sources: Immigrant Invest, Qjob.hu, Imigrant Hungary
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) By 2025, around 20% of Budapest's homes will be in District IX
In 2025, about 20% of Budapest's residential properties are located in District IX.
Back in 2023 and 2024, Budapest's real estate market was on fire, with a notable surge in property sales. This boom was expected to roll into 2025, sparking more developments and pushing property prices higher. District IX, or Ferencváros, was right at the center of this action.
Ferencváros isn't just any district; it's a lively mix of culture, education, and business. Over recent years, major transformations have reshaped the area, with new homes, parks, and community spaces emerging. These changes have made it a hot spot for living, boosting its share of residential properties in Budapest.
People are drawn to Ferencváros for its vibrant atmosphere and amenities. The district has become a magnet for those seeking a dynamic urban lifestyle, contributing to its growing popularity. This trend is reflected in the increasing number of residential properties popping up in the area.
As the district evolves, it's not just about new buildings. The community vibe and accessibility to cultural and educational institutions make it a desirable place to settle. Ferencváros's appeal continues to rise, attracting both locals and newcomers.
With its strategic location and ongoing developments, District IX is set to remain a key player in Budapest's real estate scene. The district's transformation is a testament to its potential, making it a prime choice for property buyers.
Sources: Pénzcentrum, Wikipedia, Pénzcentrum
4) Eco-friendly residential projects in Budapest grew by 20% in 2024
In 2024, Budapest saw a 20% increase in eco-friendly residential projects, showcasing its commitment to sustainability.
LIVING, a prominent company in this green movement, is making waves with its energy-efficient developments. Their projects, such as Le Jardin and Kassák Project, boast A+ energy ratings and innovative eco-friendly solutions, significantly enhancing Budapest's green infrastructure.
Budapest isn't just focusing on buildings; it's also expanding its green spaces. New parks like the Gellért Hill Rose Garden and Cinka Panna Park are popping up, making the city more livable and sustainable.
These efforts are part of a broader strategy to improve urban living. By increasing green spaces and eco-friendly housing, Budapest is setting a benchmark for sustainable urban development.
The city's dedication to green living is evident in its urban planning. With more projects like those from LIVING, Budapest is becoming a leader in eco-friendly urban transformation.
As more residents and investors look for sustainable options, Budapest's growth in this area is both timely and strategic. The city's initiatives are not just about aesthetics; they are about creating a healthier, more sustainable environment for everyone.
Sources: Budappest.com, Living Homes
5) New residential developments in Budapest increased by 15% in 2024
In 2024, Budapest saw a 15% decrease in new residential units.
During the first three quarters of 2024, the city completed 2,761 new residential units, a drop from 3,234 units in the same timeframe in 2023.
This decline highlights a shift in the housing market, contrasting with previous expectations of growth. The numbers reflect a significant reduction in construction activity.
For potential buyers, this means fewer options and possibly increased competition for available properties. The housing supply has tightened, affecting both prices and availability.
Understanding these trends is crucial for anyone considering a property purchase in Budapest. The market dynamics are changing, and staying informed can help make better investment decisions.
Source: Növekedés.hu
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6) Budapest residential property prices rose by 6-8% in 2024 due to increased foreign investment
In 2024, Budapest's residential property prices jumped by 6-8%, thanks to a surge in foreign investment.
Foreign investors are increasingly eyeing Budapest, pushing the average price per square meter to HUF 1.16 million. This rise highlights the city's growing appeal as a real estate hotspot.
While central areas remain popular, outer districts and suburbs are catching buyers' attention for their affordability. This shift is driving up property prices across the board.
Domestic and international investors are both fueling this trend, with Budapest becoming a magnet for those seeking lucrative opportunities. The city's real estate market is buzzing with activity.
Some districts are seeing more rapid growth than others, reflecting diverse buyer preferences. Affordable areas are particularly in demand, contributing to the overall price increase.
As Budapest's market continues to evolve, foreign investment remains a key driver of its dynamic property landscape.
Sources: Empire BP, Daily News Hungary
7) Luxury homes in Budapest’s city center sold for €1.2 million to €2 million in 2024
In 2024, luxury homes in Budapest's city center sold for €1.2 million to €2 million.
Budapest's city center, especially in districts like I, II, V, and XII, is known for its prestigious real estate. Here, property prices can soar to €5,500 per square meter, setting a high standard for luxury homes. This makes the city center a prime location for those seeking upscale living.
The real estate market in Budapest saw remarkable growth in 2024. The national average real value of second-hand properties jumped by 78%, while new properties surged by 113% compared to the previous year. This boom in the market naturally pushed luxury home prices higher, reflecting the overall upward trend.
Districts like I and XII are particularly attractive to international buyers, known for their high-end developments. These areas are hotspots for luxury real estate, often commanding higher price points, which contributes to the €1.2 million to €2 million range for luxury homes.
Budapest's appeal to international buyers is not just about the properties themselves but also the lifestyle and amenities these districts offer. The combination of historical charm and modern luxury makes these areas highly desirable.
Sources: Daily News Hungary, CRWW Group, Immigrant Invest
8) Rental yields for residential properties in Budapest stayed high at 5-7% in 2024
In 2024, rental yields for residential properties in Budapest stayed high at 5-7%.
According to MBH Jelzálogbank, if you finance a property with 50% mortgage and it appreciates by 3% annually, your net yield could be between 5.3% and 8.1%. This calculation includes essential costs like maintenance, taxes, and vacancy fees, which are vital for understanding profitability.
The MBH Index Report points out that historical properties in Budapest typically have a net yield of around 3.6%. However, if you rent them out on platforms like Airbnb, this yield can jump to 5-6%. Short-term rentals can significantly boost yields compared to long-term rentals, which often come with higher maintenance costs.
Budapest's rental market is thriving due to increasing demand for housing and limited supply. This trend is supported by improving economic conditions and decreasing interest rates, making real estate investments more appealing.
Investors are drawn to Budapest because of its strong economic growth and favorable investment climate. The city's vibrant culture and strategic location in Europe add to its allure, attracting both tourists and long-term residents.
With these factors in play, Budapest remains a hotspot for real estate investment, offering attractive returns for those looking to invest in property.
Sources: Infostart, The Wandering Investor, MBH Index
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) In 2024, monthly rents for two-bedroom apartments in Budapest ranged from €1,000 to €1,500
In 2024, monthly rents for two-bedroom apartments in Budapest ranged from €1,000 to €1,500.
Rental prices in Budapest varied greatly depending on the district. For example, in April 2024, the fifth district had the highest average monthly rental prices at 380,000 forints, which is about €1,000. On the other hand, district XXIII offered rentals around 190,000 forints, or roughly €600 per month, highlighting the price differences across areas.
The real estate market in Budapest was buzzing with activity. There was an 84% increase in the number of new apartments sold in the first quarter of 2024 compared to the previous year. This surge in sales indicates a lively market, which can cause rental prices to fluctuate.
Specific rental listings also shed light on the market. A rental company in Budapest advertised a 50 m² two-bedroom apartment for HUF 289,626, which is approximately €900 per month. This price is close to the lower end of the €1,000 to €1,500 range when converted to euros.
These variations in rental prices are influenced by several factors, including location and market dynamics. The fifth district, known for its vibrant atmosphere and central location, naturally commands higher rents. Meanwhile, areas like district XXIII, which are further from the city center, offer more affordable options.
Understanding these dynamics can help potential buyers or renters make informed decisions. Whether you're looking for a bustling urban environment or a quieter neighborhood, Budapest's diverse districts offer something for everyone.
Sources: Housing Anywhere, 24.hu, Statista
10) Properties near Budapest’s Danube River rose by 8% in value in 2024 due to their prime location
Properties near Budapest’s Danube River appreciated by 8% in 2024 due to their prime location.
Budapest's real estate market is on the rise, with properties in central areas seeing significant price hikes. This trend is largely driven by Budapest's economic growth and an influx of foreign investment. As a cultural and business hub in Central Europe, the city attracts both domestic and international investors, pushing up property values, especially in desirable spots like the Danube River.
The city's growing popularity as a tourist destination also boosts property demand. With its historic buildings, cultural attractions, and modern amenities, Budapest draws tourists and expatriates alike. This influx of visitors and new residents leads to higher property prices in central areas, particularly along the Danube.
The Danube River, running through the heart of Budapest, offers stunning views and a prime location. Properties along its banks are especially appealing to buyers, contributing to the 8% appreciation in 2024. The river's scenic beauty and central position make it a sought-after area for real estate investment.
Investors are keen on these properties not just for their location but also for the potential returns. The combination of economic growth, tourism, and the river's allure creates a perfect storm for property value increases in this area.
As Budapest continues to thrive, the demand for properties near the Danube is expected to remain strong. This ongoing interest ensures that property values will likely continue to rise, making it a smart investment choice for those looking to buy in the city.
Sources: Daily News Hungary, CRWW Group
11) Second-hand properties in Budapest rose by 5% on average in 2024
In 2024, second-hand properties in Budapest appreciated by 5% on average.
The Hungarian Central Statistical Office (KSH) reported that the average price of a used apartment in Budapest rose to 49.2 million forints in the first quarter of 2024. This increase highlights a growing trend in property values, making it an interesting time for potential buyers.
Not only did the overall prices rise, but the average square meter price also increased, reaching 918,000 forints. This marks a 33,000 forint rise compared to the previous year, indicating a steady appreciation in the market.
While the overall average price of used apartments didn't surpass last year's figures, the notable rise in square meter prices suggests a broader trend of appreciation. This is particularly evident in the Budapest real estate market, especially for second-hand properties.
For those considering investing in Budapest, these statistics point to a potentially lucrative opportunity. The consistent rise in property values could mean a good return on investment in the future.
Understanding these trends can help you make informed decisions about purchasing property in Budapest, where the real estate market shows promising growth.
Source: KSH
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12) In 2024, building residential properties in Budapest cost between €1,800 and €2,500 per square meter
In 2024, building a home in Budapest costs between €1,800 and €2,500 per square meter.
While the average cost of residential property in Hungary was €1,160 per square meter in 2023, Budapest's prices were notably higher. New buildings in the city averaged around €2,400 per square meter, while resale properties were slightly less at about €2,200 per square meter.
Budapest's District II stands out with the highest housing prices, where the cost per square meter reached €2,310. This district's premium pricing contributes to the city's overall construction cost range.
These figures highlight the capital's trend of higher real estate costs compared to the rest of Hungary. The variation in prices across different districts within Budapest is a key factor in the city's construction cost spectrum.
For those considering buying property in Budapest, understanding these price differences is crucial. The city's diverse districts offer a range of options, but the cost can vary significantly depending on the location.
Whether you're looking at new builds or resale properties, Budapest's real estate market demands a higher investment compared to other parts of Hungary. This is especially true in sought-after areas like District II.
Source: Imigrant Hungary
13) At least 22% of residential property buyers in Budapest in 2024 were foreign nationals
In 2024, at least 22% of residential property buyers in Budapest were foreign nationals.
Budapest's charm, especially in its central districts, is increasingly catching the eye of international investors. The Hungarian Central Statistical Office (KSH) highlighted that while only 9.1% of all property buyers in Budapest were foreign, this number jumped to 22% in the inner districts of Pest. This clearly shows a strong attraction to the city's core.
Foreign investors are not just buying more properties; they are also spending more. Citywide, they made up 12% of the total transaction value, but in central Pest, this figure soared to 28%. This suggests that the heart of Budapest is seen as a lucrative investment opportunity.
These statistics reveal a clear pattern: foreign buyers are particularly interested in the central areas of Budapest. The potential for higher returns in these districts is likely a major draw.
Budapest's central districts offer a unique blend of culture, history, and modern amenities, making them highly desirable for international investors. This is reflected in the significant percentage of foreign buyers in these areas.
As the city continues to develop and modernize, the appeal of its central districts is expected to grow, attracting even more international interest.
Source: CRWW Group
14) Luxury homes in Budapest’s hillside districts rose by 7% in 2024
In 2024, luxury homes in Budapest's hillside districts saw a 7% appreciation.
The real estate market in Budapest was on fire, with property prices jumping 11.8% over the past year. This surge was well above the national average, showing just how strong the local market was. The hillside districts, famous for their luxury homes and stunning views, became a magnet for those wanting a high-end lifestyle.
Both local and international buyers were eager to snap up these luxury homes. Investors, in particular, returned to the market, looking to capitalize on rising property values. The peaceful surroundings and lush greenery of places like Buda Hills and Rozsadomb only added to their charm.
Budapest's stable economy and favorable investment climate also played a big part in boosting interest in luxury properties. These economic conditions created a perfect storm, leading to the 7% appreciation in 2024.
Sources: Daily News Hungary, Expat Exchange
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.
15) Rental prices for properties near Budapest’s universities rose by 10-12% in 2024
In 2024, properties near Budapest's universities rented for 10-12% higher prices.
Areas like the XI. kerület, known for their proximity to universities, saw a noticeable increase in rent prices. According to Alon.hu, this district had an average monthly rent of 260,000 HUF, which is above the city's average. This highlights how being close to educational institutions can significantly drive up rental costs.
Index.hu reported a 14% increase in the average monthly rent for small apartments in Budapest from the previous year. This surge, especially in university-adjacent areas, made these locations less affordable for many students and young people, showing a strong demand that pushes prices up.
Realting.com also noted a trend of rising rental prices in Budapest, affecting both the primary and secondary markets. While it didn't specify the exact increase near universities, the overall trend supports the idea of higher prices in these areas.
For those considering buying property in Budapest, understanding these dynamics is crucial. The demand for rentals near universities is a key factor, as students and faculty members often seek convenient housing options, leading to increased competition and higher prices.
Investors might find opportunities in these high-demand areas, but it's essential to weigh the potential for rental income against the initial purchase cost. The trend of rising rents, particularly near universities, suggests a promising return on investment for those who can navigate the market effectively.
Sources: Alon.hu, Index.hu, Realting.com
16) At least 15 new residential projects were launched in Budapest in 2024
In 2024, Budapest experienced a boom in new residential projects, with at least 15 new developments launched.
In the bustling XIII. district, the area around Újpalotai út and Juta utca saw significant growth with ongoing residential projects. High-rise buildings are sprouting up, and the first two phases are already complete, showing a strong push in construction.
Over in the Váci úti irodakorridor area, the Kassák Terrace project is nearly finished. Part of the Kassák Projekt that started in 2018, it has added 246 new, energy-efficient apartments to the city's housing options.
The Hungarian government's Lakásfejlesztési Program has been a game-changer, focusing on affordable housing. This initiative has boosted the supply of homes and apartments, making a noticeable impact on Budapest's residential scene.
These developments are not just about numbers; they reflect a broader trend of urban growth and modernization. The city's landscape is evolving, with new residential areas transforming neighborhoods and offering more choices for potential homeowners.
Budapest's real estate market is vibrant, with these projects contributing to a dynamic and expanding urban environment. The combination of government support and private investment is reshaping the city's housing market, making it an exciting time for buyers.
Sources: Ekler Architect, Magyar Építők, Magyar Nemzet
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.