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
Where are the best places to invest in Budapest right now? Is District V still the top pick, or are areas like District VII, District IX, and District XIII gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with real estate agents, property developers, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Budapest and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
How this content was created 🔎📝
1) Kőbánya is gaining interest for its large green spaces and revitalized residential areas
Kőbánya has become a sought-after market due to its large green spaces and the ongoing revitalization of its residential areas. In recent years, property prices in Kőbánya have been on the rise, indicating increased demand for housing. This trend suggests that the area is becoming more attractive to potential buyers.
The district has seen significant investment in local infrastructure, including the expansion of public transport options like the M3 underground line. This has improved accessibility and appeal. Additionally, the development of new parks and recreational facilities, such as the revitalized Sportliget public sporting park, enhances the quality of life for residents.
Urban development plans, like the Budapest Urban Development Plan 2027, outline strategies for redeveloping brownfield zones in Kőbánya into new residential areas with high-quality green spaces. These plans aim to create model eco-neighbourhoods, ensuring a human-scale density and compatibility with the cityscape. Specific projects, such as transforming the Dreher Brewery premises into a cultural and entertainment venue, further enhance the area's appeal and livability.
Sources: Budapest Climate Strategy, Wikipedia, Urban Development Plans
2) Pesterzsébet is gaining attention for its affordable property prices and expanding local amenities
Pesterzsébet is gaining attention due to its relatively lower property prices. In the first quarter of 2023, property prices in Pesterzsébet fell by 10.53% year-over-year, which is less severe compared to other districts like Pest, where prices dropped by 35.62%.
This makes Pesterzsébet an attractive option for buyers looking for affordable housing in Budapest. Additionally, the broader Hungarian property market is expected to grow steadily, driven by favorable economic conditions and changing residential trends, which further supports interest in areas like Pesterzsébet.
Moreover, the planned extension of tram line 3 to Pesterzsébet will improve public transport connectivity, making it easier for residents to travel within the city. This enhancement in infrastructure is likely to boost the area's appeal, as better transport options often lead to increased interest from both residents and businesses.
Sources: Global Property Guide, Railway Pro, eSales International
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) Újlipótváros is attracting interest with high rental yields from its city center proximity and vibrant cultural scene
Újlipótváros is gaining attention for its high rental yields, and there are several reasons for this trend. First, the rental yields in Budapest, including Újlipótváros, have been rising due to strong demand for city living. This demand is driven by the city's growing population and its increasing popularity among international students and expats.
The short-term rental market in Budapest is thriving, with typical listings booked for 274 nights a year and a median occupancy rate of 75%. This high demand indicates the potential for high rental yields in areas like Újlipótváros. Additionally, the average daily rate of €71 for short-term rentals further highlights the profitability of investing in this district.
Another factor contributing to Újlipótváros's appeal is its proximity to major business districts and public transportation hubs. The 13th district, where Újlipótváros is located, benefits from good public transportation connectivity, including the M3 metro line and several tram lines. This makes it convenient for commuters and attractive to professionals working in the city.
Sources: Where to Stay in Budapest, Airbtics, The Wandering Investor
4) Óbuda is gaining attention for its scenic views and new residential complexes along the Danube
Óbuda is quickly becoming one of Budapest's most sought-after areas, thanks to its stunning views and new residential developments along the Danube.
In 2023, Óbuda saw a surprising dip in property prices, but by 2024, prices had surged due to high demand. This shift highlights the area's growing popularity among homebuyers looking for picturesque settings.
The district is buzzing with activity, boasting 61 new residential projects and 7,700 flats either under construction or in the planning stages. This development boom is part of a larger urban strategy, which includes transforming old industrial sites like the former gasworks into vibrant community spaces.
Óbuda's appeal is further enhanced by its waterfront location, making it a top choice for those seeking homes with scenic views. Surveys indicate a rising interest in such properties, drawing more buyers to the area.
The district isn't just about housing; it's also becoming a cultural hub. With an increase in tourism and cultural activities, Óbuda is gaining a reputation as a lively and attractive place to live.
For those considering a move, Óbuda offers a unique blend of natural beauty and urban convenience, making it a compelling option in Budapest's real estate market.
Sources: Daily News Hungary, Budapest 2020 Summary, Hungary Today
5) Józsefváros is booming with its central location and historic building renovations driving real estate interest
Józsefváros is experiencing a real estate boom, and a big part of this is thanks to its central location in Budapest. Being centrally located means it's easy for people to get around the city, which is a huge plus for anyone looking to buy property. The area is also seeing a lot of interest because of the ongoing renovation of historic buildings, which adds a unique charm and appeal to the neighborhood.
In recent years, property prices in Józsefváros have been on the rise. This is partly due to the gentrification happening in the area, as well as new transport links that make it even more accessible. The city has been modernizing its transport system, including extending tram lines, which boosts the long-term value of properties in neighborhoods like Józsefváros.
Another factor driving the real estate boom is the significant investment in infrastructure and public spaces. The government is renovating historic areas, turning Józsefváros into a cultural hub with cafes, restaurants, and art galleries. This transformation makes the area more attractive to both locals and tourists, increasing demand for housing.
Foreign investors are also showing increased interest in Józsefváros. The ease of purchasing real estate in Hungary and the potential for high rental income make it an appealing option. With its trendy neighborhoods and cultural spaces, Józsefváros is particularly attractive to these investors.
Sources: Budapest by Locals, World Estate Homes, World Estate Homes
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.
6) Zugló is gaining attention for its family-friendly vibe and affordable larger properties
Zugló is drawing interest for its family-friendly environment and the availability of larger properties at competitive prices for several reasons.
First, the development of the Zugló City Centre by Zaha Hadid Architects is a major attraction. This project includes nearly 35,000 square meters of communal green space, shade trees, and ponds, which are very appealing to families. The focus on reducing energy consumption and emissions while enhancing the quality of life makes it a sustainable choice for those looking to settle in a family-friendly neighborhood.
Additionally, Zugló offers competitive property prices compared to other districts in Budapest. While real estate prices in Budapest are generally high, Zugló provides more affordable options, making it an attractive choice for families. The availability of larger properties in the area, as highlighted by real estate agencies, further adds to its appeal for families who need more space.
Moreover, the emphasis on green spaces and community areas in the Zugló City Centre project aligns with the growing interest among buyers for neighborhoods with ample recreational areas. This trend is supported by surveys and market trends, indicating that Zugló is seen as a sustainable and family-friendly environment.
Sources: World Architecture, Landscape Architecture Aotearoa
7) Rákospalota is gaining interest for its suburban charm and potential property value growth as the area develops
Rákospalota is gaining popularity among homebuyers for its suburban charm and potential for property value growth.
In Budapest, property prices have been climbing, with a notable 11.8% increase year-over-year in 2023. While specific numbers for Rákospalota aren't available, the area is likely following this upward trend, making it an attractive spot for real estate investment.
Rákospalota's appeal is boosted by significant investments in local infrastructure. The Rákospalota – Újpest railway station is undergoing modernization, featuring spacious, barrier-free platforms. This is part of a larger plan to improve public transport links, enhancing connectivity with central Budapest and making the area more accessible to potential buyers.
Demographic trends in Budapest show a growing population, especially among young families and professionals. These groups are drawn to suburban areas like Rákospalota for their affordability and quality of life. The ongoing urban expansion and infrastructure improvements, such as the M3 metro line extension, are expected to further boost property values in the area.
Rákospalota offers a suburban feel with the convenience of city access, making it a promising investment opportunity. As the area develops, property values are likely to rise, attracting more buyers looking for a balance of lifestyle and investment potential.
Sources: Hungary Today, PestBuda, World Estate Homes
8) Ferencváros is gaining interest for its modern developments and historic charm, attracting young professionals
Ferencváros is experiencing a surge in demand, and there are several reasons why this is happening. First, property prices have been rising steadily. In 2023, the average price per square meter was €2,900, and by the first quarter of 2024, it had increased to approximately €4,200. This rise in property values indicates a growing interest in the area.
Another factor contributing to the demand is the development of new residential projects. Ferencváros has the highest number of new-build projects in Budapest, with over 7,000 new apartments available. This shows a significant investment in modern residential developments, which is attractive to young professionals looking for contemporary living spaces.
In addition to modern developments, Ferencváros is known for its historic charm. The restoration and renovation of historic buildings add to the district's appeal, offering a unique blend of old and new that many young professionals find appealing. This mix of modern and historic elements creates a vibrant urban environment that is highly sought after.
Sources: Imigrant Hungary, Wikipedia, RE/MAX Hungary
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) Angyalföld is gaining attention for its rapid property appreciation potential with new infrastructure projects underway
Angyalföld is becoming a magnet for investors, and there are several reasons why this area is seeing such rapid property appreciation. In 2024, the average cost of a new apartment in Budapest reached HUF 79 million, with significant increases in districts like Angyalföld. This shows a high demand and appreciation in property values, especially when compared to other areas.
One of the key factors driving this trend is the announcement of new infrastructure projects. The Hungarian government has invested in extending metro line M1, which will improve connectivity across the city. This makes it easier for residents in Angyalföld to access central Budapest, enhancing the area's appeal to potential buyers and investors.
Additionally, the Budapest Railway Node Strategy aims to reduce commute times and improve connectivity, which is expected to positively impact property values in Angyalföld. Real estate experts have also predicted growth in northern Budapest due to these transport upgrades, with reports highlighting steady economic growth in Hungary, further boosting the property market.
Sources: CRWW Group
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.