Authored by the expert who managed and guided the team behind the Hungary Property Pack
Everything you need to know before buying real estate is included in our Hungary Property Pack
Wondering whether it's a smart move to buy property in Hungary right now?
In this article, we break down the current housing prices in Hungary using fresh data, expert analysis, and the latest market signals to help you decide.
We constantly update this blog post to reflect the most recent developments in Hungary's real estate market.
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 Hungary.
So, is now a good time?
As of early 2026, the verdict for buying property in Hungary is "rather yes," but only if you plan to hold for at least 5 to 10 years and choose your location and financing wisely.
The strongest signal supporting this conclusion is that supply remains structurally constrained, with new dwelling completions down 14% year-over-year while demand continues to rise.
Another strong signal is that the Otthon Start subsidized mortgage program at 3% fixed interest has brought thousands of new buyers into the market, keeping demand elevated despite high prices.
Additional signals include the Hungarian National Bank estimating prices are about 14% above fundamentals, 18% of Budapest properties selling above asking price, and rental yields compressing as prices outpace rents.
The best investment strategies in Hungary for 2026 include targeting family houses or larger apartments in the Budapest agglomeration that qualify for Otthon Start financing, or focusing on central Budapest districts with strong rental demand if you plan to rent out.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Hungary, or should I wait as of 2026?
Do real estate prices look too high in Hungary as of 2026?
As of early 2026, property prices in Hungary look elevated, with the Hungarian National Bank estimating that housing prices are approximately 14% above what economic fundamentals like incomes, rents, and construction costs would justify.
One clear signal that prices look stretched in Hungary comes from the bidding data: in Budapest, an unprecedented 18% of properties sold above the asking price in early 2025, suggesting buyers are competing fiercely and paying premium prices rather than negotiating discounts.
Another indicator is the compression of rental yields in Budapest, which have dropped from around 5.2% to 4.4%, meaning that prices have risen faster than rents, which often signals an overheated market where buyers are paying more than income potential justifies.
You can also read our latest update regarding the housing prices in Hungary.
Does a property price drop look likely in Hungary as of 2026?
As of early 2026, the likelihood of a meaningful property price decline in Hungary over the next 12 months appears low to medium, mainly because policy support and tight supply are keeping the market buoyant despite elevated valuations.
The plausible price change range for Hungary real estate in the next 12 months is approximately minus 5% to plus 15%, meaning a small correction is possible in overheated segments, but another round of gains remains the more likely scenario if subsidies and supply constraints persist.
The single most important macro factor that could increase the odds of a price drop in Hungary is a sharp tightening of credit conditions or a significant rise in market mortgage rates above the current 6.5% to 7% level, which would reduce buyer purchasing power.
However, this scenario seems less likely in the near term because the European Central Bank has been cutting rates, the Otthon Start program keeps effective borrowing costs low for eligible buyers, and inflation in Hungary is expected to moderate toward the central bank's target by early 2027.
Finally, please note that we cover the price trends for next year in our pack about the property market in Hungary.
Could property prices jump again in Hungary as of 2026?
As of early 2026, the likelihood of a renewed price surge in Hungary within the next 12 months is medium to high, particularly in Budapest and areas that qualify for the Otthon Start subsidized mortgage program.
The plausible upside price change for Hungary property in the next 12 months ranges from 10% to 20%, with Budapest potentially seeing the higher end of this range if supply remains constrained and demand from subsidized buyers continues.
The single biggest demand-side trigger that could drive prices to jump again in Hungary is the continued rollout of the Otthon Start program, which offers 3% fixed-rate mortgages compared to market rates of 6.5% to 8%, effectively doubling the purchasing power of eligible first-time buyers.
Please also note that we regularly publish and update real estate price forecasts for Hungary here.
Are we in a buyer or a seller market in Hungary as of 2026?
As of early 2026, Hungary is in a seller-leaning market, with the strongest seller conditions found in Budapest where limited supply and strong demand give property owners significant pricing power.
The months-of-inventory equivalent in Hungary is tight, with the Hungarian National Bank reporting that vacant new homes available for purchase in Budapest fell 11% year-over-year, which typically means buyers have fewer choices and less room to negotiate.
The share of listings with price reductions in Hungary remains relatively low, and in fact the opposite trend dominates: about 8% of sales nationally involved competitive bidding, and in Budapest, 18% of properties sold above the asking price, which indicates sellers can often command premium prices.
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.
Are homes overpriced, or fairly priced in Hungary as of 2026?
Are homes overpriced versus rents or versus incomes in Hungary as of 2026?
As of early 2026, homes in Hungary appear overpriced compared to both rents and incomes, particularly in Budapest and the new-build segment where prices have risen faster than what local earnings and rental income can comfortably support.
The price-to-rent ratio in Hungary has stretched beyond balanced levels, with gross rental yields in Budapest dropping to around 4.4% to 5% from 5.2% previously, which means buyers are paying more relative to the income a property can generate.
The price-to-income multiple in Hungary has also worsened, with the MNB explicitly stating that housing prices are rising faster than household incomes, and market mortgage rates around 6.7% APR make monthly payments a significant burden for average earners who don't qualify for subsidized loans.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Hungary.
Are home prices above the long-term average in Hungary as of 2026?
As of early 2026, Hungary property prices are significantly above the long-term average, with housing prices having increased by roughly 260% since 2010, making Hungary one of the fastest-growing real estate markets in the European Union.
The recent 12-month price change in Hungary has been approximately 15% to 20% nationally and up to 25% in Budapest, which is well above the pre-pandemic pace and among the strongest growth rates in Europe.
In inflation-adjusted terms, Hungary real estate prices have roughly doubled over the past decade and are near or above prior cycle peaks, meaning "cheap versus history" is not an accurate description of the current market.
Get fresh and reliable information about the market in Hungary
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What local changes could move prices in Hungary as of 2026?
Are big infrastructure projects coming to Hungary as of 2026?
As of early 2026, Hungary's property prices are most sensitive to ongoing urban transit improvements and major employer expansions rather than a single headline megaproject, with areas near Budapest metro extensions and regional investment corridors in Debrecen and Gyor seeing the strongest infrastructure-driven price effects.
The timeline for these developments varies, with Budapest District XI and District XIII benefiting from completed or ongoing metro and tram improvements, while the HUF 800 billion to 1,000 billion Housing Capital Program announced in late 2024 is expected to gradually increase residential supply over the 2026 to 2027 period.
For the latest updates on the local projects, you can read our property market analysis about Hungary here.
Are zoning or building rules changing in Hungary as of 2026?
The most important rule change affecting Hungary's housing market in 2026 is not a dramatic zoning liberalization but rather the design of housing subsidy programs, particularly the Otthon Start requirements that cap property prices at HUF 100 million for apartments and HUF 150 million for houses, with a maximum of HUF 1.5 million per square meter.
As of early 2026, the net effect of these rule changes is likely to keep prices somewhat anchored in segments that qualify for subsidies, while potentially pushing premium properties outside the subsidy limits into a separate, less liquid market.
The areas most affected by these rules in Hungary are new-build developments in Budapest's outer districts and the Budapest agglomeration, where developers are actively designing projects to meet Otthon Start price caps and attract subsidy-eligible buyers.
Are foreign-buyer or mortgage rules changing in Hungary as of 2026?
As of early 2026, the most significant rule change affecting Hungary property demand is the Otthon Start subsidized mortgage program, which has effectively reduced the average interest rate paid by eligible new borrowers from around 6.7% to 3%, dramatically increasing purchasing power for first-time buyers.
There is no major foreign-buyer restriction being introduced in Hungary, although non-EU citizens still need to obtain an acquisition permit from local authorities, which costs around 130 to 160 euros and takes about 30 days to process.
On the mortgage side, the key changes include the Otthon Start loan cap of HUF 50 million at 3% fixed for 25 years, a reduced down payment requirement of just 10% instead of the usual 20%, and the ability to combine this with other programs like CSOK Plusz for families with children.
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.
Will it be easy to find tenants in Hungary as of 2026?
Is the renter pool growing faster than new supply in Hungary as of 2026?
As of early 2026, renter demand in Hungary's key markets appears to be keeping pace with or slightly exceeding new rental supply, particularly in Budapest and university cities where job opportunities and student populations sustain tenant interest.
The estimated net household formation and in-migration signal in Hungary shows continued urban pull toward Budapest, with young professionals and international students driving rental demand in central districts where ownership is increasingly unaffordable.
The pace of new completions in Hungary has been weak, with only 7,490 new dwellings built in the first three quarters of 2025, down 14% from the previous year, which limits how quickly rental supply can expand and keeps vacancy tight.
Are days-on-market for rentals falling in Hungary as of 2026?
As of early 2026, well-priced rentals in Budapest typically stay listed for around 14 to 21 days on average, with competitively priced studios and one-bedrooms in central locations renting within 7 to 14 days.
The difference in days-on-market between best areas and weaker areas in Hungary is significant: prime Budapest districts like V, VI, and VII see rentals absorbed within one to two weeks, while outer districts and overpriced units can sit for 30 to 45 days or more.
One common reason days-on-market falls in Hungary is the persistent undersupply of quality rental stock in central Budapest combined with seasonal demand peaks in August and September when universities resume and corporate relocations increase.
Are vacancies dropping in the best areas of Hungary as of 2026?
As of early 2026, vacancy rates in the best-performing rental areas of Hungary, including Budapest Districts V (Belvaros-Lipotvaros), VI (Terezvaros), VII (Erzsebetvaros), XI (Ujbuda), and XIII (Ujlipotvaros), remain tight at around 1% to 2%, with similarly low rates in central Debrecen, Gyor, and Szeged.
The estimated vacancy rate in these best areas is notably lower than the overall Budapest average of 2% to 4%, reflecting the deep structural demand from professionals, students, and expatriates who prioritize location and connectivity.
One practical sign that the best areas are tightening first in Hungary is that landlords in Districts V, VI, and VII report receiving multiple tenant inquiries within hours of listing and can often choose between applicants, while outer district landlords must offer incentives or price reductions.
By the way, we've written a blog article detailing what are the current rent levels in Hungary.
Buying real estate in Hungary can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Hungary as of 2026?
Is for-sale inventory shrinking in Hungary as of 2026?
As of early 2026, for-sale inventory in Hungary's hottest segments is shrinking, with the Hungarian National Bank reporting that vacant new homes available for purchase in Budapest fell 11% year-over-year, signaling tightening conditions for buyers.
The months-of-supply equivalent in Hungary is difficult to calculate precisely due to limited official data, but the combination of strong transaction volumes exceeding the long-term average and competitive bidding on 8% of national sales suggests inventory is below balanced market levels.
The single most likely reason inventory is shrinking in Hungary is the combination of weak new construction completions, with only about 7,500 homes delivered in the first nine months of 2025, and strong subsidized demand pulling available stock off the market faster than it can be replaced.
Are homes selling faster in Hungary as of 2026?
As of early 2026, homes in Hungary are selling quickly, with the most reliable proxy being that 18% of Budapest properties sold above the asking price, which strongly implies rapid competition for well-priced stock rather than extended marketing periods.
While precise days-on-market data is limited, the year-over-year trend suggests selling times have shortened in Hungary's most active segments, driven by subsidized buyer demand entering the market after the Otthon Start program launch in September 2025.
Are new listings slowing down in Hungary as of 2026?
As of early 2026, we don't have precise official data on new for-sale listings in Hungary, but the combination of low completions and strong demand suggests that new listings are not keeping pace with buyer interest, creating the tight market conditions we observe.
The seasonal pattern for new listings in Hungary typically sees higher activity in spring and autumn, with the current winter period normally quieter, though the Otthon Start-driven demand has pulled forward some listings as sellers capitalize on eager buyers.
One plausible reason new listings are slower than demand in Hungary is that existing homeowners who locked in lower mortgage rates in previous years are reluctant to sell and re-enter the market at current prices and financing costs.
Is new construction failing to keep up in Hungary as of 2026?
As of early 2026, new construction in Hungary is clearly failing to keep up with demand, with only 7,490 dwellings completed in the first three quarters of 2025, down 14% year-over-year, while strong buyer interest continues to absorb available stock.
The trend in permits offers some hope: construction permits were issued for nearly 20,000 new dwellings in the first nine months of 2025, up 37% from the prior year, but these projects take 18 to 24 months to complete, meaning supply relief won't arrive until 2027.
The single biggest bottleneck limiting new construction in Hungary is the combination of elevated construction labor costs, which rose nearly 13% year-over-year according to MNB data, and developers needing to design projects that fit within Otthon Start price caps to attract subsidized buyers.
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.
Will it be easy to sell later in Hungary as of 2026?
Is resale liquidity strong enough in Hungary as of 2026?
As of early 2026, resale liquidity in Hungary is strong for mainstream property types, with the MNB reporting that transaction volumes exceeded the long-term average and competitive bidding indicates active buyer participation.
The estimated median days-on-market for resale homes in Hungary varies by segment, but well-priced properties in Budapest and major cities typically sell within weeks rather than months, which compares favorably to a "healthy liquidity" benchmark of 30 to 60 days.
One property characteristic that most improves resale liquidity in Hungary is location in a well-connected Budapest district or a major regional city, combined with move-in ready condition, as buyer competition is strongest for turnkey homes that qualify for Otthon Start financing.
Is selling time getting longer in Hungary as of 2026?
As of early 2026, selling time in Hungary has not lengthened materially compared to the previous year, and in the most active segments, properties are actually moving faster due to subsidized demand from the Otthon Start program.
The current median days-on-market in Hungary ranges from approximately two to four weeks for well-priced properties in prime locations to two to three months for overpriced or less desirable listings that need price adjustments to attract buyers.
One clear reason selling time could lengthen in Hungary is if mortgage affordability deteriorates further, either through rising market rates above 7% or if the government scales back subsidy programs, which would reduce the pool of qualified buyers and slow turnover.
Is it realistic to exit with profit in Hungary as of 2026?
As of early 2026, the likelihood of selling with a profit in Hungary is medium to high if you hold for at least five years, as this is when capital gains tax drops to zero and you've had time for price growth to cover transaction costs.
The estimated minimum holding period in Hungary that most often makes exiting with profit realistic is five years, which is also the threshold at which the 15% capital gains tax is fully eliminated, making shorter-term speculation significantly less attractive.
The estimated total round-trip cost in Hungary, including buying and selling expenses, ranges from about 10% to 15% of the property value, covering the 4% transfer tax, 1% legal fees, potential 3% to 5% agent commission on sale, and miscellaneous costs, which equals approximately HUF 4 to 6 million on a HUF 40 million property, or roughly 10,000 to 15,000 euros.
One clear factor that most increases profit odds in Hungary is buying below the Otthon Start price caps in locations with strong fundamentals, as these properties attract the largest pool of subsidized buyers and are most likely to see continued demand growth.
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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 Hungary, 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 National Bank (MNB) Housing Market Report | Hungary's central bank providing the country's most comprehensive housing market analysis. | We used it as our primary source for overvaluation estimates, bidding statistics, and market temperature signals. We extracted the 14% overvaluation figure and Budapest over-asking data directly from their analysis. |
| Hungarian Central Statistical Office (KSH) Housing Prices | Hungary's official statistics agency providing authoritative price index data. | We used it to validate price growth rates and compare Hungary's position within the EU housing market. We cross-checked MNB figures against KSH price index movements. |
| KSH Dwelling Construction and Permits | Official government data on construction activity and future supply pipeline. | We extracted completion figures (7,490 dwellings, down 14%) and permit data (19,947 permits, up 37%) to assess supply constraints. |
| Eurostat House Price Index | EU's statistical authority enabling fair cross-country price comparisons. | We used it to benchmark Hungary's price growth against EU averages and validate the strength of Hungary's housing cycle. |
| European Commission Economic Forecast | Official EU macroeconomic projections used by institutions globally. | We used it to set the macro backdrop for Hungary's housing demand, including inflation trajectory and growth expectations. |
| MNB Trends in Lending Report | Central bank's official monitoring of mortgage volumes and interest rates. | We extracted market mortgage APR data (around 6.7%) and lending growth figures to assess affordability conditions. |
| MNB Press Release on Home Start Program | Official central bank update on how subsidized lending is affecting the market. | We used it to document how the Otthon Start program reduced effective borrowing rates and stimulated buyer demand in late 2025. |
| FRED / BIS Real Residential Property Prices | Reputable international data platform distributing standardized property price series. | We used it to analyze Hungary's long-term real price cycle and compare current levels to historical peaks. |
| OECD Housing Prices Indicators | Trusted international organization with consistent indicator definitions across countries. | We used it to frame what "overpriced" means in terms of price-to-income and price-to-rent ratios. |
| Global Property Guide Hungary | Respected international property research platform with detailed country analyses. | We used it for rental yield data, market forecasts, and contextual analysis of Hungary's investment attractiveness. |
| Budapest Business Journal | English-language business publication covering Hungary's real estate market. | We used it for market commentary, expert quotes, and analysis of 2026 supply and demand dynamics. |
| Reuters Hungary Housing Support | Top-tier international newswire providing verified policy reporting. | We used it to confirm Otthon Start program parameters including loan caps, interest rates, and down payment requirements. |
| GKI Economic Research | Hungarian economic research institute providing independent market analysis. | We used it for EU comparison context and analysis of the Otthon Start program's affordability impact across income levels. |
| Helpers Hungary | Established relocation and property service provider with detailed program guides. | We used it to verify Otthon Start eligibility criteria, property price caps, and foreigner access rules. |
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.