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Yes, the analysis of Budapest's property market is included in our pack
Budapest's residential property market in June 2025 shows remarkable strength with prices rising 6-17% annually and transaction volumes up 36% compared to last year.
As we reach mid-2025, the Budapest real estate market continues to attract both local buyers and international investors, despite rising mortgage rates hovering around 6.3-6.7%. The market is characterized by tight housing supply, particularly for new builds, while sellers maintain strong negotiating power across most segments.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 in June 2025 is experiencing strong price growth with average residential prices reaching HUF 1.16-1.27 million per sqm (€2,800-3,100), though growth is expected to moderate in the coming months.
Transaction volumes have surged 36% year-on-year in Budapest, with investors comprising 40-45% of buyers, while housing supply remains tight especially for new builds, keeping sellers in a strong negotiating position.
| Market Indicator | Current Status | Trend Direction |
|---|---|---|
| Average Price per sqm | HUF 1.16-1.27 million (€2,800-3,100) | Rising 6-17% annually |
| Transaction Volume | 36% higher than 2024 | Strong increase |
| Mortgage Rates | 6.3%-6.7% | Elevated, impacting affordability |
| Housing Supply | New builds down 15% | Tightening |
| Rental Yields | 4.8%-5.4% gross | Slightly declining |
| Investor Share | 40-45% of purchases | Remains high |
| Price Outlook | Moderate growth expected | Slowing but positive |
What's the current price per square meter for homes in Budapest?
Budapest residential properties currently average between HUF 1.16 million and HUF 1.27 million per square meter, which translates to approximately €2,800 to €3,100.
Prime central districts like District V and District XII command significantly higher prices, often exceeding HUF 2 million per sqm (over €5,000). Meanwhile, outer suburban districts offer more affordable options ranging from HUF 700,000 to 900,000 per sqm (€1,800 to €2,400).
New build apartments typically carry a premium, averaging HUF 1.4 to 1.5 million per sqm (€3,300 to €3,600), while secondary market apartments hover around HUF 1.24 million per sqm (€3,100) as of early 2025.
The variation in prices reflects Budapest's diverse property landscape, with location and property type being the primary determinants of value in the current market.
It's something we develop in our Hungary property pack.
How have Budapest property prices shifted in the past year and a half?
Budapest residential property prices have risen steadily and strongly over the past 12-18 months.
Annual price increases have ranged from 6% to nearly 20% depending on the data source and property segment. In 2024, overall prices rose approximately 6-8%, with some reports indicating 11.8% year-on-year increases in late 2024.
Early 2025 has witnessed continued robust growth of 9-17% year-on-year across different property types and districts. This sustained price appreciation has been driven by strong demand, limited housing supply, and increased foreign investment interest in Budapest real estate.
However, market experts forecast a moderation in price growth later in 2025 due to rising mortgage rates and growing affordability constraints affecting local buyers.
What's the current transaction activity compared to last year?
Transaction volumes in Budapest have increased significantly compared to the previous year.
By early 2025, property transactions in Budapest and its metropolitan area were running 36% higher than the same period in 2024. This follows a strong performance in early 2024 when transactions had already risen by approximately 30% year-on-year.
Nationwide, residential transactions increased by about 18% in 2024, with Budapest accounting for roughly 40% of all property deals in Hungary. This concentration underscores Budapest's dominance in the Hungarian real estate market.
The surge in transaction activity reflects pent-up demand, improving economic conditions, and strong investor appetite for Budapest properties.
Is buyer interest growing, steady, or declining right now?
Buyer demand in Budapest remains strong but is showing signs of stabilization and slight hesitation as we reach mid-2025.
While early 2025 witnessed high demand and rapid sales, the capital city market has somewhat stagnated by June 2025. More buyers are shifting their interest to suburban areas and surrounding regions due to high prices in central Budapest.
Investors continue to be very active, representing approximately 40-45% of all purchases in Budapest in early 2025. This investor demand particularly focuses on prime and mid-range segments, helping to support overall market activity despite affordability challenges facing owner-occupiers.
The current market dynamic suggests a transition from the frenzied pace of early 2025 to a more balanced environment.
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Is the housing inventory getting tighter or looser?
Housing supply in Budapest is generally tightening, particularly for new residential developments.
New home completions decreased by approximately 15% in 2024, resulting in fewer new units available compared to previous years. This shortage of new builds contributes significantly to supply constraints and upward price pressure.
| Supply Indicator | Current Status | Impact on Market |
|---|---|---|
| New Home Completions | Down 15% in 2024 | Pushing prices higher |
| Overall Listings | Slight year-on-year increase | Providing some relief |
| Construction Activity | Limited new projects | Future supply concerns |
| Short-term Rental Conversions | Some units returning to market | Minor inventory boost |
| Developer Pipeline | Below historical averages | Long-term supply shortage |
While the overall number of properties listed has increased slightly year-on-year, this is partly due to sellers responding to high prices and regulatory changes affecting short-term rentals.
The fundamental supply-demand imbalance continues to favor sellers in the Budapest property market.
Who has the upper hand in negotiations - buyers or sellers?
Sellers currently hold stronger negotiation power across most market segments in Budapest.
Many sellers are listing properties at 10-15% above market averages, reflecting their optimism fueled by high demand and strong investor interest. This pricing confidence is particularly evident for well-located properties and newly built apartments.
Buyers tend to have negotiation room primarily for properties requiring renovation or those located in less sought-after areas. In prime locations and for turnkey properties, sellers often receive multiple offers, sometimes above asking price.
This seller's market dynamic is expected to persist through summer 2025, though seasonal factors may provide buyers with slightly more leverage during traditionally slower periods.
What's happening with mortgage rates and buyer affordability?
Mortgage interest rates in Hungary currently range from 6.3% to 6.7%, significantly higher than in previous years.
These elevated borrowing costs have increased monthly payments and reduced affordability for many potential buyers. Despite rising wages and government subsidies, higher mortgage rates have contributed to a slowdown in buyer interest growth and increased caution among owner-occupiers.
The Hungarian government has implemented measures to ease affordability pressures, including capping mortgage rates at 5% for certain qualifying loans. However, overall financing conditions remain tighter than before the rate increases.
It's something we develop in our Hungary property pack.
The impact on the market has been notable, with many first-time buyers either delaying purchases or looking at smaller properties and suburban locations to maintain affordability.
How is inflation affecting property buyers and investors?
Inflation in Hungary peaked above 20% recently but has now stabilized, restoring buyer confidence in the real estate market.
The high inflation environment and volatile financial markets have pushed investors to seek real estate as a safe haven for wealth preservation and income generation. This flight to tangible assets has fueled strong investor demand for Budapest properties.
For individual buyers, stabilizing inflation has made financial planning more predictable, though the previous inflationary period has eroded some purchasing power. Real estate continues to be viewed as an effective hedge against future inflation risks.
This environment supports continued investment interest despite affordability challenges facing typical homebuyers, with investors viewing Budapest property as a relatively stable store of value.
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.
Which property types are seeing the most action?
The mid-range segment is currently the most active in Budapest's property market.
- Small 1-1.5 bedroom apartments are particularly favored by investors due to strong rental demand from young professionals and students
- Mid-range properties priced between HUF 40-70 million (€100,000-175,000) see the highest transaction volumes
- Luxury properties in prime districts (Districts I, V, XII) remain in demand, attracting foreign buyers and wealthy locals
- New build apartments command premium prices and sell quickly despite limited supply
- Renovated properties in historic buildings appeal to both investors and owner-occupiers seeking character homes
New builds are highly sought after but represent a small portion of transactions due to limited supply, with prices for new apartments rising faster than resale properties.
Which Budapest neighborhoods are hottest right now?
Central districts continue to dominate buyer interest in Budapest's property market.
Districts V, XIII, XI (Újbuda), and XII remain the most popular choices for both investors and owner-occupiers, offering excellent infrastructure, amenities, and transport connections. These established areas command premium prices but deliver strong rental demand.
Suburban and outer districts are gaining significant traction, particularly Districts X, XV, XVI, and areas like Kőbánya, Pesterzsébet, and Rákospalota. These neighborhoods offer more affordable entry points and are benefiting from improving infrastructure and urban development projects.
Up-and-coming areas with new transport links and urban renewal projects, such as Óbuda and Józsefváros, are attracting growing demand from buyers seeking value and future appreciation potential.
What's the rental yield situation and investor outlook?
Rental yields in Budapest have declined slightly but remain attractive for European standards.
Current gross rental yields average between 4.8% to 5.4%, depending on district and property size. This represents a decrease from approximately 5.7% a year earlier, reflecting the fact that property prices have risen faster than rental rates.
| District Type | Average Gross Yield | Investor Appeal |
|---|---|---|
| Prime Central (V, VI) | 4.8%-5.0% | High demand, stable tenants |
| Buda Hills (II, XII) | 4.5%-4.8% | Premium properties, capital growth |
| Inner Pest (VII, VIII, IX) | 5.2%-5.4% | Student/young professional demand |
| Outer Districts (X, XIV, XV) | 5.3%-5.6% | Higher yields, family rentals |
| Suburban Areas | 5.4%-5.8% | Best yields, longer tenancies |
Investor sentiment remains cautiously optimistic, with strong demand for rental properties in well-located areas despite concerns about yield compression.
The combination of capital appreciation potential and steady rental income continues to attract both domestic and international investors to Budapest's property market.
Where is Budapest's property market headed in the next few months?
Budapest's housing market is expected to continue rising but at a more moderate pace over the next 3-6 months.
Price growth is forecast to slow from the current 6-17% annual rate to a more sustainable 5-8% by late 2025. Transaction volumes are projected to increase by 10-20%, supported by government subsidies, maturing investments, and ongoing foreign interest.
The traditional summer slowdown may provide buyers with slightly more negotiation power temporarily, but no major price corrections are anticipated. Market fundamentals remain strong with continued demand exceeding supply.
A notable trend will be the shift in demand towards suburbs and smaller towns as affordability pressures persist in the city center. This suburban migration is expected to support price growth in outer districts while potentially moderating increases in prime central locations.
It's something we develop in our Hungary property pack.
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 real estate market in June 2025 presents both opportunities and challenges for prospective buyers and investors.
While prices continue to rise and seller negotiation power remains strong, the market shows signs of transitioning to a more balanced state. Smart buyers focusing on emerging neighborhoods and investors with long-term perspectives can still find value, particularly as the market begins its expected moderation phase in the coming months.
Sources
- Budapest Real Estate Market Analysis - Investropa
- Real Estate Market in Budapest - CRWW Group
- Hungary Square Meter Prices - Global Property Guide
- No Stopping in the Rise of Real Estate Prices - Hungary Today
- Housing Market Report May 2024 - Hungarian National Bank
- Residential Transactions in Hungary Up 18% - Property Forum
- Hungary's Real Estate Market in 2025 - International Investment
- Why Investors Rule Budapest's Real Estate Market - Daily News Hungary
- Hungary Rental Yields - Global Property Guide
- Hungary Real Estate Forecasts - Investropa