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Thinking about buying a 3-bedroom apartment in Budapest's District V? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like District VII or District XIII where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Hungary Property Pack.
Will property prices increase in Hungary in 2025?
No, property prices in Hungary are not expected to rise in 2025, due to a combination of economic challenges and market dynamics.
Backed by our fresh, in-depth market analysis, we’re observing a cooling trend in the Hungarian property market, influenced by both domestic and international factors.
While there are some positive indicators like government incentives and infrastructure developments, the prevailing economic conditions and market saturation are likely to outweigh these factors.
Economic pressures, such as inflation and high interest rates, are expected to dampen buyer enthusiasm, while an increase in housing supply could further stabilize or reduce prices.
Signals pointing to a property price increase in Hungary
Here are some factors suggesting prices could increase:
Government initiatives aimed at supporting first-time homebuyers and families, such as subsidies and tax incentives, could stimulate demand in certain segments of the market.
Ongoing infrastructure projects, particularly in urban areas, are expected to improve connectivity and accessibility, potentially increasing the attractiveness of properties in these regions.
A growing trend of foreign investment in Hungarian real estate, particularly in Budapest, could provide a boost to property prices, especially in the luxury and commercial sectors.
Signals pointing to a property price decrease in Hungary
Here are some factors suggesting prices could fall:
Rising inflation and living costs are putting pressure on household budgets, reducing the purchasing power of potential buyers and leading to decreased demand.
High mortgage interest rates are making it more difficult for buyers to afford loans, which could lead to a slowdown in property transactions and a cooling of the market.
An increase in housing supply, particularly in new developments, is expected to outpace demand, leading to a stabilization or decrease in property prices.
Economic uncertainty and potential political instability in the region may deter both domestic and international investors, leading to reduced demand for properties.
The potential for stricter lending criteria from banks could limit access to financing for many potential buyers, further reducing demand.
A shift in demographic trends, such as an aging population and declining birth rates, could lead to a reduced demand for housing over the long term.
The impact of global economic conditions, such as a potential recession, could negatively affect Hungary's economy and, by extension, its property market.
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If property prices go up in Hungary, how much would they increase by?
If real estate prices in Hungary were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Hungary appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Budapest for 85,000,000 HUF today, don't be surprised if it's priced between 87,550,000 and 90,950,000 HUF this time next year.
To give you a better understanding, here is a table that shows 7 types of Hungarian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (HUF) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Historic Apartment (60 sqm / 646 sqft) | 90,000,000 HUF | 92,700,000 HUF | 94,500,000 HUF | 96,300,000 HUF |
| Modern Apartment (75 sqm / 807 sqft) | 120,000,000 HUF | 123,600,000 HUF | 126,000,000 HUF | 128,400,000 HUF |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 250,000,000 HUF | 257,500,000 HUF | 262,500,000 HUF | 267,500,000 HUF |
| Studio (30 sqm / 323 sqft) | 45,000,000 HUF | 46,350,000 HUF | 47,250,000 HUF | 48,150,000 HUF |
| Loft (80 sqm / 861 sqft) | 160,000,000 HUF | 164,800,000 HUF | 168,000,000 HUF | 171,200,000 HUF |
| Townhouse (150 sqm / 1,615 sqft) | 350,000,000 HUF | 360,500,000 HUF | 367,500,000 HUF | 374,500,000 HUF |
| Investment Property (50 sqm / 538 sqft) | 75,000,000 HUF | 77,250,000 HUF | 78,750,000 HUF | 80,250,000 HUF |
Everything you need to know is included in our Property Pack for Hungary
If real estate prices go up in Hungary, which areas are likely to see the biggest increases?
Today, people who want to move to Hungary are looking for a blend of historical charm and modern amenities, which District V in Budapest offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in youthful, vibrant neighborhoods, and District VII has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Hungarian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| District V (Belváros-Lipótváros) | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| District I (Castle District) | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Budapest. |
| District VII (Erzsébetváros) | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| District XIII (Újlipótváros) | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| District IX (Ferencváros) | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| District II (Rózsadomb) | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| District VIII (Józsefváros) | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| District XI (Újbuda) | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Budaörs | Medium-High | Its proximity to Budapest, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| District VI (Terézváros) | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| District XII (Hegyvidék) | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Szentendre | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this picturesque location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Hungary?
In 2025, Hungary's real estate trends focus on tech-smart, energy-efficient apartments in Budapest, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments in Budapest:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas around Budapest and other major cities in Hungary are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In urban areas like Budapest, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Hungary's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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