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
Whether you are a first-time buyer or an experienced investor, understanding the Budapest real estate market in 2026 can feel overwhelming at first.
In this article, we break down everything from current housing prices in Budapest to neighborhood trends, rental demand, and what the next few years might bring.
We constantly update this blog post with fresh data, so you always have access to the latest market insights.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Budapest.
How's the real estate market going in Budapest in 2026?
What's the average days-on-market in Budapest in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Budapest is around 75 days, which means most sellers should expect about two and a half months from listing to closing.
In practice, this number varies quite a bit: panel apartments in Pest districts typically sell in 58 to 70 days, while brick apartments in inner-city or Buda locations often take 80 to 90 days, so a realistic range for most typical Budapest listings is roughly 60 to 95 days.
Compared to one or two years ago, the market has settled into a more balanced rhythm, as late 2023 and early 2024 saw slower activity due to high interest rates, and the current pace reflects buyers returning with more confidence but still negotiating carefully.
Are properties selling above or below asking in Budapest in 2026?
As of early 2026, the estimated average sale-to-asking price ratio in Budapest is around 96% to 98%, meaning most properties close at about 2% to 4% below the original asking price.
Based on transaction data, the vast majority of Budapest properties sell at or below asking, with only a small fraction (likely under 10%) attracting multiple offers that push the final price to asking or slightly above, though we should note this varies significantly by micro-location and property condition.
The properties most likely to see competitive offers or above-asking sales in Budapest are well-renovated apartments in prime inner-city districts like District V, District XIII (Ujlipotvaros), or the better streets of District VII, especially when they are priced realistically and hit the market in spring or early autumn.
By the way, you will find much more detailed data in our property pack covering the real estate market in Budapest.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Hungary. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Budapest?
What property types dominate in Budapest right now?
In Budapest in 2026, the estimated breakdown of residential properties for sale is roughly 60% brick apartments (including pre-war and post-war buildings), 15% panel apartments (the concrete-block flats built during the socialist era), 15% detached or semi-detached family houses (mostly in outer districts and Buda hills), and about 10% new-build condos and other property types.
The single property type representing the largest share of the Budapest market is brick apartments, which dominate both listings and transactions because they make up the historic fabric of inner Pest districts like VI, VII, VIII, and IX.
Brick apartments became so prevalent in Budapest because the city expanded rapidly in the late 19th and early 20th centuries with Austro-Hungarian-era construction, creating the dense, courtyard-style buildings that still define much of central Pest today.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Budapest right now?
New-build properties make up an estimated 7% to 10% of all residential listings in Budapest in 2026, which means they are available but not abundant, and buyers should expect to search actively to find suitable options.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Budapest are District XIII (Angyalfold and Ujlipotvaros), District XI (Ujbuda, especially near Moricz Zsigmond korter and Kelenfoldi Station), District IX (Ferencvaros, particularly near the Danube), and parts of District III (Obuda), where developers have focused on transit-connected redevelopment zones.
Get fresh and reliable information about the market in Budapest
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which neighborhoods are improving fastest in Budapest in 2026?
Which areas in Budapest are gentrifying in 2026?
As of early 2026, the top neighborhoods in Budapest showing the clearest signs of gentrification are District VIII (Jozsefvaros), especially around Corvin Quarter (Corvin-negyed) and the Magdolna Quarter, District IX (Ferencvaros) along the rehabilitated Danube-side zones, and parts of District XIII (Angyalfold and the edges of Ujlipotvaros).
In these areas, the visible changes indicating gentrification include the opening of specialty coffee shops, craft beer bars, and co-working spaces (particularly along Krudy Gyula utca in District VIII), the renovation of pre-war building facades, and a noticeable shift toward younger professionals and international residents moving in.
Over the past two to three years, price appreciation in these gentrifying Budapest neighborhoods has been estimated at 25% to 40% in nominal terms, with District VIII and District IX often outpacing the city average due to their central location and improving infrastructure.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Budapest.
Where are infrastructure projects boosting demand in Budapest in 2026?
As of early 2026, the top areas in Budapest where major infrastructure projects are boosting housing demand are along the Metro M3 corridor (from Ujpest in the north through District XIII to Kobanya-Kispest in the south), the southern Buda and Pest zones near the planned Galvani Bridge, and parts of District XI near Kelenfoldi Station on Metro M4.
The specific infrastructure projects driving demand include the completed Metro M3 reconstruction (which has modernized stations and improved reliability), the planned Galvani Bridge connecting District XI (Ujbuda) to District IX (Ferencvaros) and eventually Csepel, and ongoing tram line upgrades in southern Pest.
The Metro M3 reconstruction is essentially complete, while the Galvani Bridge project is in the planning and design phase with construction expected to take several years, meaning full completion is realistically a mid-to-late 2020s or early 2030s prospect.
In Budapest, infrastructure project announcements typically create a 5% to 15% price premium in nearby properties, with additional gains of 10% to 20% once projects are completed and operational, though the exact impact depends heavily on the specific micro-location and property type.
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.
What do locals and insiders say the market feels like in Budapest?
Do people think homes are overpriced in Budapest in 2026?
As of early 2026, the general sentiment among Budapest locals and market insiders is mixed: many believe that prime inner-city locations like District V and the Buda Hills are overpriced relative to local incomes, while properties in outer districts or secondary locations are seen as more fairly valued.
When arguing that homes are overpriced, locals typically cite the rapid 20% to 25% nominal price growth in 2025, the fact that Budapest prices have nearly doubled since 2015, and the difficulty for average Hungarian earners to afford even a modest apartment without substantial family help or inheritances.
Those who believe prices are fair or justified in Budapest usually point to the limited supply of quality housing, the city's status as the cheapest major capital in the European Union, ongoing demand from foreign buyers, and the expectation that EU-level convergence will eventually push prices higher.
The price-to-income ratio in Budapest is estimated at around 12 to 15 years of average gross salary to buy a typical apartment, which is significantly higher than the Hungarian national average of about 8 to 10 years and comparable to or slightly below ratios in Prague or Vienna.
What are common buyer mistakes people regret in Budapest right now?
The most frequently cited buyer mistake in Budapest is purchasing an apartment without properly investigating the building's common areas, HOA (homeowners association) finances, and planned maintenance costs, which can lead to surprise assessments for facade renovations, roof repairs, or elevator upgrades that add tens of thousands of euros to ownership costs.
The second most common regret is underestimating micro-location effects, such as buying in District VII or VI without realizing that certain streets are directly adjacent to the "party zone" (ruin bar district), which can mean significant noise issues, difficulty finding long-term tenants, and lower resale appeal to families or professionals.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Budapest.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Budapest.
Get the full checklist for your due diligence in Budapest
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Budapest in 2026?
Do foreigners face extra challenges in Budapest right now?
The overall difficulty level for foreigners buying property in Budapest in 2026 is moderate: EU and EEA citizens face relatively few hurdles and can buy almost as easily as Hungarians, while non-EU buyers must obtain a government permit, which adds time and paperwork but is generally granted for residential properties.
The main legal requirement for non-EU foreign buyers in Budapest is obtaining permission from the local Land Registry office (Foldhivatal), a process governed by Government Decree 251/2014, which typically takes two to four months and requires proof of identity, the purchase contract, and sometimes documentation of the buyer's connection to Hungary.
Beyond the permit process, foreigners commonly encounter challenges specific to Budapest such as navigating Hungarian-language contracts and Land Registry documents, finding banks willing to lend (as many require local income documentation), and dealing with sellers or agents who prefer cash buyers or Hungarian nationals to avoid closing delays.
We will tell you more in our blog article about foreigner property ownership in Budapest.
Do banks lend to foreigners in Budapest in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Budapest, but options are more limited than for Hungarian citizens, with only a handful of banks (such as OTP, Erste, and Raiffeisen) regularly processing foreign applications, and approval often depends on the buyer's residency status and income documentation.
Foreign buyers in Budapest can typically expect loan-to-value (LTV) ratios of 50% to 70% (compared to up to 80% for Hungarians), and interest rates in the range of 7% to 9% for forint-denominated mortgages, reflecting the Hungarian National Bank's base rate of 6.5% plus bank margins.
Banks in Budapest typically require foreign applicants to provide proof of income (ideally from an EU source or Hungarian employer), tax returns, employment contracts, a Hungarian bank account, and sometimes a larger down payment or additional collateral to offset perceived risk.
You can also read our latest update about mortgage and interest rates in 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.
How risky is buying in Budapest compared to other nearby markets?
Is Budapest more volatile than nearby places in 2026?
As of early 2026, Budapest's property market is estimated to be more volatile than Vienna or Munich, roughly comparable to Prague, and somewhat less volatile than smaller Central European capitals like Bratislava or Zagreb, based on historical price swing patterns.
Over the past decade, Budapest experienced price swings of up to 15% to 20% year-over-year in both directions (including a significant dip during 2008 to 2013 and rapid growth from 2015 to 2022), whereas Vienna saw steadier 3% to 8% annual changes and Prague had swings of 10% to 15%, making Budapest one of the more cycle-sensitive markets in the region.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Budapest.
Is Budapest resilient during downturns historically?
Historically, Budapest property values have shown moderate resilience during downturns, with the market typically experiencing corrections rather than crashes, and recovering within three to five years after significant declines.
During the 2008 to 2013 financial crisis, Budapest property prices dropped by an estimated 20% to 30% in real (inflation-adjusted) terms, and recovery to pre-crisis levels took roughly five to six years, with the market not fully regaining momentum until 2015 to 2016.
The property types and neighborhoods in Budapest that have historically held value best during downturns include premium Buda locations (Districts II and XII), well-maintained brick apartments in District V (Belvaros-Lipotvaros), and newer condos in District XI and XIII with strong rental fundamentals, while outer panel estates and poorly maintained buildings in transitional areas saw the steepest declines.
Get to know the market before you buy a property in Budapest
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How strong is rental demand behind the scenes in Budapest in 2026?
Is long-term rental demand growing in Budapest in 2026?
As of early 2026, long-term rental demand in Budapest is estimated to be stable to slightly growing, driven by high property prices and mortgage rates that keep many potential buyers renting longer, along with continued inflows of students and professionals.
The tenant demographics driving long-term rental demand in Budapest include young Hungarian professionals who cannot yet afford to buy, international students (especially at Semmelweis, Corvinus, and CEU), expat workers employed by multinational companies, and digital nomads attracted by Budapest's relatively low cost of living.
The neighborhoods with the strongest long-term rental demand in Budapest right now are District XIII (especially near Westend and Lehel ter), District XI (around Moricz Zsigmond korter and near university campuses), District VI and VII (for those seeking central nightlife access), and District IX (Ferencvaros, popular with young professionals).
You might want to check our latest analysis about rental yields in Budapest.
Is short-term rental demand growing in Budapest in 2026?
The most significant regulatory change affecting short-term rentals in Budapest is the complete ban on Airbnb-style accommodations in District VI (Terezvaros) that took effect on January 1, 2026, combined with a citywide moratorium on new short-term rental registrations throughout Budapest from January 2025 to December 2026.
As of early 2026, short-term rental demand from tourists remains strong (Budapest recorded nearly 6.7 million guest nights in recent years), but the supply side is being constrained by these new regulations, which means existing licensed operators may see higher occupancy while new entrants are blocked.
The current estimated average occupancy rate for legal short-term rentals in Budapest is around 55% to 65% annually, with peak periods (summer, Christmas markets, major events) reaching 80% to 90% and quieter winter months dropping to 40% or below.
The guest demographics driving short-term rental demand in Budapest include leisure tourists from Western Europe and the UK (especially for city breaks and stag parties), business travelers attending conferences, and increasingly digital nomads staying for one to three months at a time.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Budapest.
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.
What are the realistic short-term and long-term projections for Budapest in 2026?
What's the 12-month outlook for demand in Budapest in 2026?
As of early 2026, the 12-month demand outlook for residential property in Budapest is stable to moderately positive, with most analysts expecting continued buyer interest supported by recovering real wages and the expectation of gradual interest rate cuts later in the year.
The key factors most likely to influence Budapest housing demand over the next 12 months include the timing and pace of MNB interest rate cuts (currently expected in late 2026), the 2026 Hungarian parliamentary election cycle and any associated policy changes, and the broader EU economic environment, particularly eurozone growth.
The forecasted price movement for Budapest over the next 12 months is an estimated 5% to 10% nominal increase, though this growth is expected to be slower than the 20% surge seen in 2025, as affordability constraints and higher base prices temper buyer enthusiasm.
By the way, we also have an update regarding price forecasts in Hungary.
What's the 3-5 year outlook for housing in Budapest in 2026?
As of early 2026, the 3 to 5 year outlook for Budapest housing prices is moderately positive, with most forecasters expecting continued nominal appreciation of 4% to 8% annually, though with more variation by neighborhood and property quality than in the recent "everything rises" years.
Major development projects expected to shape Budapest over the next 3 to 5 years include the Galvani Bridge (connecting south Buda to south Pest and potentially Csepel), continued urban renewal in District IX (Ferencvaros) and District VIII (Jozsefvaros), and expansion of cycling infrastructure and public transit improvements under the Budapest 2030 urban development plan.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Budapest is the trajectory of Hungarian-EU relations and potential impacts on EU fund flows, foreign investment appetite, and overall economic stability, which could either accelerate growth or trigger capital flight and demand weakness.
Are demographics or other trends pushing prices up in Budapest in 2026?
As of early 2026, demographic trends are having a mixed impact on Budapest housing prices: the city's population is roughly stable, but household sizes are shrinking and more people are living alone, which increases demand for smaller apartments even without significant population growth.
The specific demographic shifts most affecting Budapest prices include the continued concentration of young professionals and students in the capital (Hungary's rural areas are losing population), an aging population in some outer districts creating turnover of family homes, and a steady inflow of EU citizens and expats seeking affordable European living.
Beyond demographics, non-demographic trends pushing Budapest prices include the growth of remote work (which has made Budapest attractive to digital nomads), continued investor interest from buyers seeking EU property exposure, and the government's CSOK and housing subsidy programs that support family home purchases.
These demographic and trend-driven price pressures in Budapest are expected to continue for at least the next 5 to 10 years, as long as the city remains economically dominant within Hungary and relatively affordable compared to other EU capitals.
What scenario would cause a downturn in Budapest in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Budapest would be a combination of persistently high interest rates (if the MNB cannot cut as expected), a broader European economic slowdown reducing employment and wages, and any geopolitical shock that increases forint volatility or triggers capital outflows.
Early warning signs that such a downturn is beginning in Budapest would include a sharp increase in days-on-market beyond 100 to 120 days, a widening gap between asking and selling prices (exceeding 8% to 10%), a significant rise in new-build inventory that fails to sell, and a noticeable increase in distressed sales or foreclosure activity.
Based on historical patterns, a potential Budapest housing downturn could realistically see nominal price declines of 10% to 20% over two to three years, with recovery taking three to five years, though the severity would depend on whether the trigger is a local shock or a broader European recession.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Budapest, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Hungarian Central Statistical Office (KSH) | KSH is Hungary's official government statistics agency, making it the baseline reference for housing prices, construction data, and demographic trends. | We used KSH for official price indices, transaction volumes, dwelling construction statistics, and tourism arrivals data. We cross-checked their figures against private market sources to ensure consistency. |
| Hungarian National Bank (MNB) Housing Market Reports | The MNB is Hungary's central bank, and its housing reports provide comprehensive analysis of credit conditions, affordability, and market dynamics. | We used MNB reports for macro drivers like mortgage rates, new-build pricing trends, and medium-term demand forecasts. We triangulated their data with KSH and private broker sources. |
| Duna House Barometer | Duna House is one of Hungary's largest real estate brokerage networks, publishing regular market snapshots based on actual transaction data. | We used Duna House for on-the-ground metrics like days-on-market, negotiation discounts, and buyer behavior patterns. We treated it as a practical complement to official statistics. |
| Eurostat House Price Index | Eurostat is the EU's official statistics agency, providing standardized cross-country price comparisons. | We used Eurostat to compare Budapest's price volatility and growth rates against other EU capitals. We relied on their consistent methodology for fair comparisons. |
| European Commission Hungary Forecasts | The European Commission provides authoritative macro forecasts used by governments and institutions across the EU. | We used EC forecasts to frame 2026 and beyond economic conditions affecting housing demand. We paired these with MNB reports for housing-specific interpretation. |
| Nemzeti Jogszabalytar (Hungarian Legal Database) | This is the official repository for Hungarian legislation and government decrees, ensuring legal accuracy. | We used it to verify foreign buyer permit requirements under Government Decree 251/2014. We translated the legal requirements into practical guidance for readers. |
| M3 Metro Reconstruction Official Site | This is the official project website for one of Budapest's most important public transit upgrades. | We used it to confirm infrastructure timelines and assess neighborhood impacts along the M3 corridor. We connected this to property demand patterns in affected districts. |
| FRED (BIS Real Residential Property Prices for Hungary) | FRED is a reputable data distributor that provides BIS-sourced real (inflation-adjusted) property price series. | We used FRED for long-term analysis of real price movements and downturn resilience. We combined this with nominal KSH data to give a complete picture. |
| Airbnb Hungary Compliance Page | Airbnb's official guidance provides accurate, up-to-date information on local short-term rental regulations. | We used it to verify the Budapest registration moratorium and District VI ban details. We supplemented with local news sources for context on enforcement. |
| Trading Economics (Hungary Interest Rate) | Trading Economics aggregates official central bank data and provides accessible economic indicators. | We used it to track the MNB base rate history and current monetary policy stance. We connected rate expectations to mortgage affordability for buyers. |
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