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As we reach mid-2025, Hungary's property market continues its strong upward trajectory with residential prices rising at their fastest pace in years.
The Hungarian real estate market has transformed from a moderate recovery phase in early 2024 to a full-scale boom, with property prices increasing by double digits across all major cities and investor activity reaching unprecedented levels.
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.
Hungarian property prices are experiencing significant growth in 2025, with national prices rising 13-15% annually and Budapest seeing increases up to 19%, driven by government incentives, foreign investment, and limited housing supply.
The market shows strong momentum with double-digit price increases expected to continue throughout 2025, though experts warn of potential overvaluation risks and declining rental yields in the long term.
| Region | Average Price per m² | Annual Growth Rate |
|---|---|---|
| Budapest | HUF 1.2-1.5 million (€3,000-3,700) | 11.8-19% |
| Debrecen | HUF 882,000 (€2,200) | 13-17% |
| Szeged | HUF 792,000 (€2,000) | 10-12% |
| Győr | HUF 824,000 (€2,000) | 10-12% |
| National Average | HUF 1.2 million (€3,000) | 13.8-15% |
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.
What are the current average property prices per square meter across Hungary as of June 2025?
As of June 2025, the average price per square meter for residential properties in Hungary is approaching HUF 1.2 million (approximately €3,000), representing a significant milestone for the market.
Budapest leads the nation with average prices reaching HUF 1.5 million per square meter (€3,700) in central districts, while some prestigious areas like District V command even higher prices near HUF 1.73 million per square meter.
Major regional cities show more affordable but rapidly appreciating prices: Debrecen averages HUF 882,000 per square meter (€2,200), Győr stands at HUF 824,000 (€2,000), and Szeged follows at HUF 792,000 (€2,000).
The stark difference between new and resale properties continues to widen, with new constructions averaging €2,400 per square meter nationally compared to €1,100 for existing properties.
It's something we develop in our Hungary property pack.
How much have property prices increased in Hungary during the past 12 months?
Hungarian property prices have surged dramatically over the past year, with national prices rising by 13.8% to 15% year-on-year as of mid-2025.
Budapest has experienced the most dramatic increases, with annual growth rates ranging from 11.8% to 19% depending on the district and property type, significantly outpacing the national average.
The acceleration in price growth is remarkable compared to 2023, when increases were more modest at around 2.7% to 5.8%, indicating a sharp recovery and renewed market momentum.
| Property Type | Annual Price Increase | Key Driver |
|---|---|---|
| Panel Apartments | 20%+ | Limited supply, high demand |
| Brick-built Apartments | 13-15% | Urban migration |
| Single-family Homes | 9-10% | Suburban expansion |
| New Constructions | 13.04% | Energy efficiency demand |
| Existing Dwellings | 15.18% | Government incentives |
When adjusted for inflation, real price growth stands at 8% to 10% in the capital, still representing substantial appreciation in purchasing power terms.
Which Hungarian cities and regions are experiencing the biggest property price surges in 2025?
The Northern Great Plain region, which includes Debrecen, has emerged as the surprise leader with the highest annual price growth at 13% to 17%, driven by major industrial investments.
Budapest maintains its dominant position with consistent growth of 12% to 19%, particularly in central districts where foreign investor interest remains strongest.
Debrecen deserves special attention as panel apartment prices have reached HUF 1 million per square meter, matching Budapest's panel flat prices for the first time in history.
Szeged and other Southern Transdanubia cities are experiencing double-digit growth rates, benefiting from major industrial projects including BYD's first European factory and increased foreign investment.
In contrast, Northern Hungary lags behind with single-digit increases around 1.8%, highlighting significant regional disparities in the market.
What types of properties are seeing the most significant price increases?
Panel apartments (prefabricated flats) have emerged as the clear winners, with prices rising over 20% in some areas, particularly in Debrecen where they now match Budapest levels.
Small apartments under 60 square meters in modern residential complexes are experiencing the fastest appreciation due to strong demand from young buyers and investors.
In Budapest, prefab flats rose by 5.8% in just the first quarter of 2024, while detached houses increased by 4.9% and non-prefab condominiums by 3%.
- Panel apartments in city centers - 20%+ annual growth
- Energy-efficient new builds - 15-18% annual growth
- Small investment apartments (30-50 m²) - 15% annual growth
- Brick-built apartments in good locations - 13-15% annual growth
- Suburban family homes - 9-10% annual growth
The shortage of new, energy-efficient apartments is a major factor driving these price surges, as buyers compete for limited modern housing stock.
What are the property price forecasts for Hungary in 2026 and beyond?
Property prices in Hungary are expected to continue their double-digit growth trajectory throughout 2025, with forecasts ranging from 10% to 15% nationwide.
Budapest could see even steeper increases of up to 20% by the end of 2025, driven by an expected influx of over HUF 1,000 billion from maturing government bonds and pension savings.
Transaction volumes are projected to rise by 15-20%, reaching 145,000 sales in 2025, up from approximately 124,500 in 2024, indicating sustained market strength.
Experts from OTP Ingatlanpont and Duna House predict the residential property market will strengthen by 10-20% in both transaction volumes and prices through 2026.
However, analysts warn that the market is beginning to show "early-stage speculative characteristics" with declining rental yields (now at 0.3% real, 0.9% nominal), raising concerns about sustainability beyond 2026.
How are government policies impacting Hungarian property prices in 2025?
The Hungarian government's generous housing subsidies and tax benefits have become the primary driver of the current price boom, fueling demand across all market segments.
A new preferential mortgage scheme with a 5% APR cap for first-time homebuyers under 35 (available April-October 2025) is expected to further accelerate price growth, particularly for properties under 60 m² priced below HUF 1.2 million per square meter.
The extension of reduced VAT on new dwellings and subsidized mortgage schemes for families with children continue to create upward price pressure across the market.
New measures allowing pension savings to be used for home purchases have injected additional billions of forints into the market, with experts estimating over HUF 1,000 billion in new capital entering the housing sector.
It's something we develop in our Hungary property pack.
What role are foreign investors playing in Hungary's property price increases?
Foreign demand has rebounded to pre-pandemic levels in 2024-2025, with non-EU buyers, particularly Chinese and Vietnamese nationals, significantly increasing their market share.
The introduction of the Golden Visa program on January 1, 2025, allowing residency for property purchases above €500,000, has attracted substantial international investment, especially in Budapest and major cities.
Foreign investors are expected to inject over HUF 1,000 billion into the Hungarian property market by the end of 2025, focusing primarily on Budapest and driving prices higher.
| Investor Origin | Preferred Locations | Investment Focus |
|---|---|---|
| China | Budapest Districts V, VI, VII | Premium apartments, €300k-600k |
| Vietnam | Budapest, Debrecen | Investment properties, rental units |
| Germany | Lake Balaton region | Vacation homes, €200k-400k |
| Slovakia | Western border regions | Residential properties, €150k-250k |
| Other EU | Budapest, major cities | Mixed residential, €200k-500k |
In the first two months of 2025 alone, Hungary received 192 applications for its Guest Investor Program, with 25 investors already applying for residence permits.
Are there signs of a housing bubble forming in the Hungarian property market?
Multiple indicators suggest the Hungarian property market is entering dangerous territory, with experts noting "early-stage speculative characteristics" and warning of potential overvaluation.
Rental yields have declined significantly to historically low levels, with real yields at just 0.3% and nominal yields at 0.9%, making property investment less attractive from an income perspective.
The rapid price increases of 13-15% annually, combined with wage growth that hasn't kept pace, has created serious affordability issues for local buyers.
While there was a moderate correction in 2022-2023, the current surge is policy-driven and vulnerable to macroeconomic shocks or sudden policy reversals.
Critics warn that government incentives may be overheating the market, creating artificial demand that could lead to a significant correction if support measures are withdrawn.
How do current Hungarian property prices compare to 5 and 10 years ago?
Hungarian residential property prices have experienced one of the most dramatic increases in Europe, with nominal prices up 94% over the past 5 years and an astounding 195% over 10 years.
Since 2010, nominal prices have increased by 234%, with Budapest's average price per square meter rising from under HUF 500,000 to over HUF 1.5 million in prime areas.
Hungary has achieved the highest property price growth rate in the EU over the past decade, with prices increasing 2.5 times since 2015 compared to the EU average of 1.5 times.
When adjusted for inflation, real price growth shows a more modest but still impressive 5-6% annualized return over the past decade.
The transformation is particularly striking in regional cities like Debrecen, where prices have more than doubled in just five years, driven by industrial development and urbanization.
How do Hungarian property prices compare to other Central European countries in 2025?
Despite rapid growth, Hungarian property prices remain relatively affordable compared to regional capitals, with Budapest averaging €3,000-3,700 per square meter versus Prague's €4,600-5,600.
Warsaw commands higher prices at approximately €4,300 per square meter, while Bratislava averages around €4,000, making Budapest 15-30% cheaper than these competing capitals.
However, Budapest is significantly more expensive than Bucharest, where prices average €2,200-2,700 per square meter, positioning Hungary in the middle of the regional price spectrum.
- Prague, Czech Republic - €4,600-5,600/m² (most expensive)
- Warsaw, Poland - €4,300/m²
- Bratislava, Slovakia - €4,000/m²
- Budapest, Hungary - €3,000-3,700/m²
- Bucharest, Romania - €2,200-2,700/m² (least expensive)
Hungary's 13-15% annual price growth is among the highest in the EU, outpacing Poland's 14.4% and significantly exceeding Romania's 7-10% growth rate.
What impact is inflation having on real property values in Hungary?
With inflation running at approximately 10-11% in 2024-2025, nominal property price increases of 13-15% translate to real growth of only 3-5% after accounting for currency devaluation.
High inflation has actually supported nominal property price increases as real estate serves as a traditional hedge against currency devaluation, attracting both domestic and foreign investors.
The combination of inflation and wage growth has created a complex dynamic where property appears to appreciate rapidly in nominal terms while real purchasing power gains are more modest.
Rising construction costs due to inflation have contributed to new property prices increasing faster than existing homes, widening the gap to €2,400 versus €1,100 per square meter.
It's something we develop in our Hungary property pack.
Which areas offer the best value for property investment in Hungary right now?
Debrecen emerges as the top value proposition, offering strong growth potential at €2,200 per square meter, roughly 40% cheaper than Budapest while experiencing similar 13-17% annual appreciation.
University towns like Szeged and Pécs present excellent opportunities with prices around €2,000 per square meter and rental yields of 5.29-5.30%, driven by consistent student housing demand.
Northern Hungary, despite lagging in price growth, offers the most affordable entry points with properties in Miskolc and Salgótarján available at €1,500-1,700 per square meter.
| City/Region | Price per m² | Rental Yield | Investment Appeal |
|---|---|---|---|
| Debrecen | €2,200 | 5.01% | High - Industrial growth |
| Szeged | €2,000 | 5.0-5.3% | High - University demand |
| Pécs | €1,800 | 5.29% | Medium-High - Tourism |
| Győr | €2,000 | 4.8-5.0% | Medium - Automotive sector |
| Lake Balaton | €1,873 | 4.5-5.5% | Seasonal - Tourism dependent |
Properties near universities consistently outperform, with student housing occupancy rates exceeding 90% and rental prices in university areas climbing 20-25% year-on-year.
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.
Property prices in Hungary are definitively going up - "Yes a lot" - with double-digit increases expected to continue through 2025 and possibly into 2026.
The combination of government incentives, foreign investment influx, limited housing supply, and strong economic fundamentals suggests this upward trend will persist, though investors should be cautious of potential overvaluation risks and declining rental yields that may signal a future market correction.
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Sources
- Global Property Guide - Hungary's Residential Property Market Analysis 2025
- Hungarian Central Statistical Office (KSH) - Housing Price Index Report
- Hungary Today - Real Estate Price Analysis
- Daily News Hungary - Property Market Rapid Increase Report
- Magyar Nemzeti Bank - Housing Market Report May 2025
- Imigrant Hungary - Real Estate Prices in 2025
- Hungary Golden Visa - Real Estate Market Analysis
- Investropa - Hungary Real Estate Market Statistics 2025
- Trading Economics - Hungary Housing Index
- The Budapest Times - Property Market Recovery Analysis
- Debrecen Sun - Regional Property Market Comparison
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.