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What will happen in Hungary’s real estate market? Will prices go up or down? Is Budapest still a hotspot for foreign investors? How is Hungary’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Hungary, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Hungary’s property prices will settle down after a quick rise
Hungary's real estate market is finally seeing some price stabilization after a period of rapid growth.
In 2023, the annual growth in house prices slowed down, with prices increasing by only 5.8% compared to the previous year's 12.3%. This cooling off is a sign that the market is stabilizing. The government has been proactive, implementing policies like extending the 5% tax on new buildings and changing rental rules to help manage the market. These efforts are designed to boost demand, which can help balance the market without flooding it with too much supply.
Another factor contributing to this stabilization is the increased supply of new housing. By mid-September 2023, over 8,100 new apartments and houses were available for sale, a number not seen in over 15 years. This influx of new properties has helped keep prices in check, preventing them from skyrocketing further.
For those considering buying property in Hungary, this is a promising sign. The market is no longer as overheated as it once was, making it a potentially good time to invest. The government's measures and the increased supply are working together to create a more balanced market environment.
Insider knowledge suggests that these trends are likely to continue, with the government committed to maintaining stability. The combination of policy changes and increased housing supply is expected to keep prices from rising too quickly.
So, if you're thinking about buying property in Hungary, now might be the right time to explore your options. The market is showing signs of stability, and with the government's ongoing efforts, this trend is likely to persist.
Sources: Global Property Guide, Daily News Hungary, Hungary Today
2) More investors will be drawn to Győr as it emerges as a major logistics hub in Central Europe
Győr is quickly becoming a key logistics hub in Central Europe, drawing in more investors.
One of the main attractions is the new VGP Park Győr Béta, a massive logistics park with 46,000 square meters of space. This park is designed for logistics, light production, and commercial activities, showing the rising demand for such services in the area. It's a clear sign that Győr is gearing up to meet the needs of businesses looking for efficient logistics solutions.
Győr's strategic location is another big draw. It's near major European transport routes, like the M1 highway, which connects Budapest, Vienna, and Bratislava. This means excellent access to key cities, making it a prime spot for logistics operations. The city's industrial area and public transport infrastructure only add to its appeal, offering seamless connectivity for businesses.
Big names like Gebrüder Weiss are also betting on Győr's potential. They've been in Hungary since 1989 and plan to build a new logistics center in Győr by 2026. This move shows their confidence in the region's growth prospects. It's not just about location; it's about being part of a thriving logistics ecosystem.
Hungary's economic policies are another factor making Győr attractive. These policies are designed to draw in foreign investment, creating a favorable environment for businesses. Investors looking to tap into the logistics sector are finding Győr to be an increasingly appealing destination.
With all these elements in play, Győr is set to become a magnet for logistics investments in Central Europe. The combination of strategic location, infrastructure development, and supportive economic policies makes it a compelling choice for businesses.
Sources: Property Forum, Gebrüder Weiss Newsroom, VGP Parks
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) Rural rents will stay steady because demand is low
Rents in rural areas are expected to stay stable because not many people are looking to move there.
In the countryside, fewer people live compared to busy cities, as shown by the Hungarian Central Statistical Office. This means there's naturally less demand for housing. People often prefer urban areas where life is more vibrant and opportunities are more abundant.
Job opportunities are another big factor. The Hungarian National Bank pointed out that rural areas don't offer as many jobs as cities do. This lack of employment options means fewer people are drawn to these regions, keeping the housing demand low.
Historically, rural rental prices have been stable or even dropping, according to data from the Hungarian National Bank and the Hungarian Central Statistical Office. This trend shows that not many people are eager to rent homes in these areas.
Surveys from the Hungarian Rural Development Agency reveal that interest in rural living is quite low. People seem to prefer the hustle and bustle of city life, which further supports the idea that demand in rural areas is limited.
So, if you're thinking about buying property in the countryside, expect rents to remain steady due to this limited demand.
Sources: Hungarian Central Statistical Office, Hungarian National Bank, Hungarian National Bank, Hungarian Rural Development Agency
4) Budapest rental yields will rise as demand for city living stays strong
Rental yields in Budapest are on the rise as city living remains a hot commodity.
In August 2023, apartment rents in Budapest jumped by 12.55% compared to the previous year. This surge in rental prices shows just how strong the demand is for city living, which naturally pushes rental yields higher. With more people wanting to live in Budapest, landlords are in a good spot to benefit from this trend.
Budapest's population is steadily growing, with a 0.11% increase expected in 2024. This growth means more people are looking for places to live, which keeps the demand for rentals high. Plus, the city is a magnet for international students and expats. With 14.4% of all students in Hungary being international, many of whom choose Budapest, the rental market is buzzing with activity.
Even though the vacancy rate in Budapest nudged up to 9.9%, it's still considered low. This low vacancy rate means there's not enough supply to meet the demand, which is good news for rental yields. The city isn't seeing a lot of new housing developments, so the existing properties are in high demand, driving up prices and yields.
Sources: MNB Housing Market Report, Macrotrends, International Students in Hungary
5) Rental yields in tourist areas will vary with the seasons
Rental yields in tourist-heavy areas like Budapest can fluctuate significantly with seasonal demand.
In 2023, Hungary experienced a tourism boom, welcoming 16 million tourists, with 7.1 million being international visitors. Most of these tourists flock to the country between April and October, especially in July and August. During these peak months, the demand for short-term rentals skyrockets, pushing up rental prices and yields.
However, when the tourist season winds down, the scene changes. Fewer tourists mean lower demand for rentals, and property owners often have to adjust their prices to attract tenants. This seasonal ebb and flow can lead to noticeable fluctuations in rental yields.
Adding to the mix, Budapest has seen a surge in Airbnb listings. The increase in supply has outpaced demand, causing a drop in average occupancy rates and prices. This trend highlights how rental yields can be unpredictable, especially when the market is saturated.
For those considering investing in property, it's crucial to understand these dynamics. The rental market in tourist-heavy areas is not just about location but also timing. Knowing when demand peaks and dips can make a significant difference in returns.
So, if you're eyeing a property in Budapest, keep an eye on the tourist calendar and the Airbnb landscape. These factors can greatly influence your rental income potential.
Sources: ETIAS, Wikipedia, Hungary Today
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6) Budapest rents will increase as more international students and professionals move in
Budapest is becoming a hotspot for international students and professionals, driving up rental prices.
In 2023, the city saw nearly 98,000 foreigners calling it home, which has significantly increased the demand for rental properties. This influx is largely due to the city's appeal to students and professionals, making the rental market more competitive.
Budapest's economy is on the rise, with a projected annual GDP growth of 3-4% by 2025. This economic boom is attracting multinational companies and professionals, further boosting the demand for rentals as more people move to the city for job opportunities.
The expatriate community is also expanding, with people from diverse backgrounds like Chinese, Ukrainians, and Vietnamese settling in Budapest. This diversity is a testament to the strong and ongoing demand for housing in the city.
In 2023, a striking 56% of rental advertisements were for properties in the capital, underscoring the high demand for rentals in Budapest. The city's vibrant culture and growing job market make it an attractive place to live.
Sources: Hungarian Conservative, eSales International, KSH
7) Rents in university towns will rise as more students move in
Hungarian university towns are seeing a significant rise in student numbers, which is reshaping the local rental market.
In the 2023/2024 academic year, nearly 190,000 students enrolled in BA or BSc programs, with an additional 11,000 pursuing advanced degrees. This influx is creating a strong demand for housing, as students need places to live while they study.
Take Szeged, for example. The city is experiencing a 20-25% increase in rental prices due to limited dormitory spaces, pushing students to look for apartments. This trend is mirrored in other university towns, where the demand for rentals is climbing.
International students, in particular, are driving this change. In Pécs, they are willing to pay more for modern, well-equipped apartments near campus. This willingness to spend is pushing rental prices even higher.
Landlords are catching on, realizing that upgrading properties can attract higher-paying tenants. This is especially true in areas close to universities, where convenience is a top priority for students.
As student populations continue to grow, expect rental prices in these towns to keep rising, making them a potentially lucrative investment for property buyers.
Sources: Daily News Hungary, Statista, World Estate Homes
8) Demand for rentals near universities will grow as more international students arrive
International students are flocking to Hungary, with numbers climbing steadily each year.
This surge has led to a dramatic increase in demand for student housing. In 2023, there were nearly 120,000 applications for student residences, but the country could only accommodate just over 46,000. This gap highlights a critical shortage of student accommodations.
Budapest is feeling the crunch the most. Here, 57,000 students are competing for just 17,000 spots. This shortage is a clear signal that more rental properties near universities are desperately needed.
To tackle this issue, Hungary is planning a Student City in Budapest. This ambitious project aims to add between 12,000 and 20,000 new accommodations within three years, showing the urgent need to support the growing student population.
For property investors, this is a golden opportunity. The influx of international students means rental properties near universities are in high demand. Investing in these areas could be a smart move.
With the right investment, you could tap into this booming market and meet the needs of students looking for a place to call home during their studies.
Sources: TKA International Programmes, Hungarian Conservative, Statista
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) Investment in energy-efficient homes will rise due to new tax incentives
Hungary is making big moves to promote energy-efficient homes.
The government is offering new tax incentives to make investing in these homes more appealing. They've set aside a hefty sum, with the Hungarian national development bank (MFB) managing nearly EUR 1.5 billion under the National Recovery and Resilience Plan. This money is meant to boost sectors like energy efficiency, electric mobility, and geothermal energy, making it easier for investors to see the potential in energy-efficient projects.
Investors can benefit from tax incentives covering up to 45% of eligible costs, with a cap of EUR 30 million. These incentives are especially attractive outside Budapest, where the intensity ratio is higher, allowing investors to cut costs significantly. This makes energy-efficient homes a smart choice for those looking to invest.
There's also a growing interest in energy efficiency certification programs. The MNB has purchased nearly HUF 61 billion in green mortgage bonds to support green real estate through the Green Home Programme. This shows a clear trend towards energy-efficient housing, driven by government initiatives that make these properties more appealing to buyers and investors.
These efforts are part of a broader push to make energy-efficient homes more accessible and attractive. With the right financial backing and incentives, Hungary is positioning itself as a leader in sustainable housing solutions. The focus on energy efficiency is not just about saving money; it's about creating a more sustainable future for everyone.
Sources: PwC Hungary, MNB, European Commission
10) Airbnb-style investments will become less profitable due to stricter short-term rental regulations
Hungary is tightening its grip on short-term rentals, which could hit Airbnb-style investments hard.
One major change is the government's plan to nearly quadruple the tax on these rentals, making it more expensive for property owners. This move is part of a broader trend across Europe, where cities like Barcelona and Berlin have already seen a drop in Airbnb listings due to similar regulations. In Hungary, the suspension of new licenses for short-term flats in 2025 and 2026 could further stifle market growth.
Local communities are increasingly vocal about their concerns, echoing sentiments from other European cities. This pushback often results in tighter regulations, making it tougher for property owners to maintain profitability. In places like Berlin, these measures have already led to a noticeable decline in Airbnb activity, serving as a cautionary tale for investors in Hungary.
Property owners are understandably worried. A survey highlighted in a Genuine Impact report shows that Airbnb's net income fell by 14.6% in Q2 2024, partly due to these regulatory pressures. This decline underscores the potential financial risks for those investing in short-term rentals.
For those considering buying property in Hungary, it's crucial to understand how these changes might affect your investment. The increased costs and potential for reduced market activity could undermine the competitiveness of short-term rental properties. Investors should weigh these factors carefully before diving in.
As Hungary follows in the footsteps of other European cities, the landscape for short-term rentals is shifting. The combination of higher taxes and licensing restrictions could significantly impact profitability, making it essential for potential investors to stay informed and adaptable.
Sources: Bloomberg, International and Comparative Law Review, Genuine Impact
This video 'New Airbnb Ban in Budapest's Party District' directly addresses how stricter regulations on short-term rentals are impacting Airbnb-style investments, particularly in the party district.
11) Demand for modern apartments in cities will grow as young professionals move in
In Hungary, young professionals are increasingly moving to urban centers.
Back in 2023 and 2024, the Hungarian Statistical Office noted that up to 85% of emigrants were under 40, with a third holding at least a degree. This shift is largely due to the allure of cities, which offer better job opportunities and modern amenities like gyms and sports clubs. These aren't just conveniences; they embody the lifestyle young professionals crave.
Consumer surveys have shown that young people want to live close to work and social activities, something urban centers provide in abundance. Cities like Budapest are particularly appealing, with their vibrant social scenes and career prospects in tech and service sectors.
The real estate market in Budapest has responded to this trend, with a noticeable surge in apartment sales. Young professionals are driving this demand, preferring the modern living spaces that apartments offer. The growth in tech and service sector jobs, predominantly located in urban areas, further fuels this demand.
For those considering buying property, it's worth noting that modern apartments in urban centers are in high demand. This trend is expected to continue as more young professionals seek the lifestyle and opportunities that cities provide.
In essence, the migration of young professionals to urban areas is reshaping the real estate market, making it a prime time to invest in city properties.
Sources: RFERL, Deturope, Youth Wiki
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12) Energy-efficient homes will be prioritized by sustainability-conscious consumers
Sustainability-conscious buyers are increasingly eyeing energy-efficient homes in Hungary.
In Hungary, there's a buzz around energy-efficient homes, largely due to government initiatives like the HUF 108 billion scheme targeting homes built before 1990. This program is a clear sign of the growing demand for sustainable living spaces. The government is also offering up to 6 million forints in support for homeowners who invest in energy upgrades, making it easier for families to make the switch.
These incentives are part of a broader effort to upgrade 20,000 family homes, making energy-efficient living more accessible. Homeowners are catching on, with many seeing the benefits not just in energy savings but also in increased property value. The RenoHUb project and RenoPont initiative highlight that renovations can boost a home's market value by 20%, which is a big draw for potential buyers.
Consumer surveys reveal that aesthetics and comfort are top motivations for these upgrades. People are realizing that energy-efficient homes aren't just good for the planet; they're also a smart financial move. The trend is clear: energy-efficient homes are becoming a priority for those looking to invest in property.
As more people become aware of the benefits, the market for these homes is expected to grow. The combination of government support and consumer interest is creating a perfect storm for energy-efficient housing. It's not just about saving on bills; it's about making a long-term investment in a sustainable future.
Sources: Odyssee-Mure, Habitat for Humanity, Budapest Times
13) Demand for homes with office spaces will grow as remote work becomes more common
The rise of remote work is reshaping how we think about home spaces, especially in Hungary.
In 2023, over 151,000 people in Hungary were working remotely on a regular basis, a huge jump from just 36,000 in 2019. This shows how much remote work has become a part of everyday life. Globally, the trend is similar, with 28% of employees working remotely in 2023, up from 20% in 2020. People are now looking for homes that can accommodate their work needs, making dedicated office spaces a hot commodity.
In Hungary, real estate listings are catching on, often highlighting dedicated office spaces as a key feature. This is a direct response to the growing demand from buyers who want to work comfortably from home. Companies like Alex Furniture have expanded their offerings to meet this need, providing more options for home office setups.
Searches for homes with office spaces are on the rise, showing that more people are interested in properties that support remote work. This trend is echoed in media reports and architectural designs, which are increasingly focused on integrating home office spaces into residential properties.
As remote work becomes more common, the market for home office furniture and equipment is booming. Alex Furniture, for example, has ramped up its product range to cater to this demand. This shift is not just about furniture; it's about creating a work-friendly environment at home.
With more people working from home, the need for a dedicated workspace is becoming a priority in property searches. This is especially true in Hungary, where the number of remote workers has skyrocketed. The trend is clear: homes with office spaces are in high demand, and the real estate market is adapting to meet this need.
Sources: Statista, EconPol, Alex Furniture, Splashtop, Statista
14) Szeged’s property market will boom as it grows into a cultural and educational hub
Szeged is quickly becoming a cultural and educational hotspot, sparking a real estate boom.
The University of Szeged is a major player in this transformation, with over 1,200 new international students admitted in 2023, a 20% increase from previous years. This influx from more than 130 countries makes it one of Hungary's most diverse universities, driving up the demand for housing. The city is buzzing with students, and landlords are seeing their properties snapped up faster than ever.
Real estate in Szeged is on fire, with a 66% increase in housing market demand as of January 2024. The median price for used apartments and houses is now HUF 670,000 (EUR 1,735) per square meter, just 30% shy of Budapest's prices. This surge is fueled by Szeged's growing allure as a cultural and educational hub, and experts predict rental prices could rise by up to 30% in the next year or two.
Szeged's cultural scene is also a magnet, drawing more people to the city and further boosting real estate demand. While exact numbers of cultural festivals aren't available, the buzz around Szeged as a cultural destination is undeniable. The city is becoming a go-to spot for events, and this is catching the eye of both investors and potential residents.
Media coverage is playing a big role in this transformation, shining a spotlight on Szeged's cultural and educational developments. This attention is enhancing the city's reputation, making it an attractive option for those looking to invest or settle down. The word is out, and Szeged is on the map as a place to watch.
With all these factors in play, Szeged is poised for a real estate boom. The combination of a thriving university, a vibrant cultural scene, and increasing media attention is creating a perfect storm for property demand. Investors and homebuyers are taking note, and the city's future looks bright.
Sources: Hungary Today, University of Szeged News, Schengen News
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.
15) Property values in Budapest's northern suburbs will rise as new transport links shorten commutes
The northern suburbs of Budapest are set to see a boost in property values thanks to new transport links that cut down commute times.
In 2023 and 2024, the Hungarian government rolled out a big plan called the Budapest Railway Node Strategy. This plan involves major investments in the railway network to make getting around easier. By upping train frequency and connecting suburban rail services with the metro, the goal is to reduce commute times significantly. This is great news for anyone living in the northern suburbs.
On top of that, the government has put aside Forints 10 billion, which is about US$27.35 million, to extend metro line M1. This extension will improve connectivity across the city, making it a breeze for folks in the northern suburbs to get to central Budapest. Historically, when cities like London and Tokyo improved their transport systems, property values went up. So, Budapest might be next in line.
Real estate experts are already predicting growth in northern Budapest because of these transport upgrades. A report from Cushman & Wakefield highlights that Hungary's economy is expected to grow steadily, with GDP growth around 3-4% annually by 2025. This economic boost is likely to positively impact the property market in areas with better connectivity.
Urban planners and real estate analysts are also saying that these new transport links will make life better for residents. This means the northern suburbs could become even more appealing for property buyers. With easier commutes and a better quality of life, investing in property here might be a smart move.
Sources: Railway Pro, Metro Rail Today, eSales International
16) Property growth in eastern Hungary will slow down because of limited infrastructure development
The eastern regions of Hungary are lagging behind in growth compared to the rest of the country.
One big reason is the limited government investment in infrastructure there. While there are plans to boost infrastructure in 2025, the focus is mainly on the western and central parts of Hungary. For instance, the Debrecen-Nyíregyháza railway line in the east is on the list, but it's overshadowed by bigger projects in the west.
In 2025, the government set aside HUF 480 billion for 300 new projects, but most of this money is likely going to the west and center. This means the east isn't getting the attention it needs, which is slowing down its economic growth.
Foreign direct investment (FDI) in Hungary hit EUR 13 billion in 2023, but again, the west and central regions are getting the lion's share. Pest county and Budapest are the hot spots for these investments, while eastern areas like Hajdú-Bihar and Borsod-Abaúj-Zemplén are missing out.
This uneven spread of investment is a big reason why the east isn't growing as fast. The lack of infrastructure and investment means fewer opportunities for businesses and residents in these areas.
Sources: Hungary Today, HIPA News, Economic Research BNP Paribas
17) Kecskemét’s property market will grow as the automotive industry expands
Kecskemét is buzzing with excitement as the automotive industry, led by Mercedes-Benz's massive investments, transforms the area.
Mercedes-Benz has invested billions of euros into its Kecskemét plant, setting up a battery assembly line and boosting the production of electric and luxury vehicles. This influx of capital has not only increased the plant's turnover but also its profitability, providing a strong economic boost to the region.
With the automotive sector's growth, employment is on the rise. The Mercedes-Benz plant currently employs nearly 5,000 people, and with expansion plans underway, more job opportunities are on the horizon. This surge in employment is a major driver for the local economy, attracting workers who will need housing, thus increasing demand in the real estate market.
The Hungarian government is also playing a crucial role by strategically focusing on the automotive industry, particularly in battery manufacturing. This support is expected to draw even more investments, further stimulating economic activity in Kecskemét. As a result, the demand for housing is anticipated to rise, leading to higher property prices and rental rates.
For those considering buying property in Kecskemét, this is an exciting time. The combination of job growth and government incentives is creating a exciting real estate market. As the automotive industry continues to expand, the area is poised for a real estate upswing.
Investors and homebuyers alike should keep an eye on Kecskemét, where the automotive boom is reshaping the landscape and offering promising opportunities in the property market.
Sources: Hungarian Conservative, KSH, Hungary Today
One of our partners sent us this video where Mercedes-Benz's €1 billion investment in a second plant is driving real estate growth in Kecskemét.
18) Better public transport in Budapest will boost demand in previously hard-to-reach neighborhoods
Budapest's public transport improvements are making once hard-to-reach neighborhoods more appealing.
With the introduction of 70 new electric buses by 2026, the city is stepping up its game in eco-friendly transport. These modern buses are not just about reducing emissions; they’re about making daily commutes smoother and more reliable. Imagine hopping on a sleek, quiet bus that gets you to your destination without the usual hustle and bustle. This upgrade is expected to boost property values in areas that were previously overlooked.
There's a growing trend of people wanting to live in places with better connectivity. Since March 2024, the reciprocal use of city and nationwide passes has made public transport more affordable and convenient. This means you can travel across the city without worrying about multiple tickets, making well-connected neighborhoods even more attractive to potential residents.
The government is putting its money where its mouth is by investing in public transport projects. This includes not just buses but also trams, showing a clear commitment to improving connectivity. Such investments are likely to draw in both residents and businesses, turning these areas into bustling hubs of activity.
For those considering buying property, these changes mean that neighborhoods once considered too far out are now within easy reach. The improved transport links are a game-changer, making these areas not just livable but desirable. It's not just about getting from point A to B; it's about enhancing the quality of life.
As Budapest continues to evolve, these transport upgrades are setting the stage for a more connected and vibrant city. Whether you're looking to invest or find a new place to call home, these developments are worth keeping an eye on.
Sources: BKK, XpatLoop, Hungarian Conservative
Our team found this video where previously less desirable neighborhoods in Budapest are becoming more attractive due to improved public transport links.
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.