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
What do the latest numbers reveal about Hungary’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Hungary, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Residential property maintenance costs in Hungary are expected to rise by about 5% in 2025 due to inflation
In 2025, residential property maintenance costs in Hungary are expected to rise by about 5% due to inflation.
Inflation typically pushes up prices for goods and services, and this includes the costs associated with maintaining a property. In recent years, property maintenance costs in Hungary have already been quite high. For example, in 2023 and 2024, the average monthly cost was around €77, or about HUF 29,750 annually. In Budapest, these costs were even steeper, reaching €92 per month, which translates to HUF 35,000 per year.
These figures underscore the significant financial commitment required for property upkeep. A major chunk of these expenses comes from utility costs, which make up about 90% of the total maintenance costs. For a one-room apartment of 40 m², the monthly utility cost was about €30, while for a two-room apartment of 75 m², it was around €60.
As inflation affects utility costs, it naturally leads to an increase in overall maintenance expenses. This means that if you're considering buying property in Hungary, it's crucial to factor in these rising costs. The impact of inflation on utilities is a key driver of the expected increase in maintenance expenses.
Understanding these dynamics can help you better prepare for the financial responsibilities of property ownership. With inflation on the rise, the cost of maintaining a property is likely to continue climbing, making it essential to budget accordingly.
In summary, if you're planning to invest in property in Hungary, be aware that maintenance costs are projected to increase due to inflation, particularly in urban areas like Budapest.
Sources: Immigrant Hungary, Váczi Zsófia
2) Residential properties in Hungary sold to expatriates are expected to rise by about 15% by 2025
The number of residential properties in Hungary sold to expatriates is anticipated to increase by approximately 15% by 2025.
In 2024, Hungary introduced new investment regulations that allow foreign investors to obtain a residence permit if they purchase a property worth at least 500,000 euros. This policy aims to attract more foreign investment, making the Hungarian real estate market more appealing to expatriates.
After a weaker year in 2023, the Hungarian real estate market is showing signs of recovery. This growth, along with a significant increase in foreign interest, supports the expectation of more sales to expatriates. In Budapest, for instance, there's been a notable rise in interest for properties within certain price ranges, indicating a growing demand.
Experts predict that the demand for residential properties from foreign investors will continue to rise. This is driven by a favorable tax environment and a high proportion of asset deals in the market.
Regions like Budapest are particularly attractive due to their vibrant culture and economic opportunities. The city's appeal is further enhanced by its strategic location in Europe, making it a hub for business and travel. This has led to a surge in interest from expatriates looking to invest in residential properties.
Sources: Index.hu, VG.hu, CEE Legal Matters
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.
3) Budapest residential property prices are expected to rise by about 15% by 2025 due to high demand and limited supply
In Budapest, property prices are on the rise due to high demand and limited supply.
Many buyers are entering the market with increased purchasing power, thanks to funds from state bonds and pension savings, as noted by Frisshirek.hu. This influx of money is making the competition for homes even fiercer.
According to LakasMarket.hu, the shortage of new, energy-efficient apartments is a major factor in this price surge. With fewer new buildings available, existing properties are becoming more valuable.
Experts predict that by 2025, residential property prices in Budapest could climb by 15%. This is largely due to the ongoing imbalance between supply and demand.
As the market tightens, buyers are finding it increasingly challenging to secure homes at reasonable prices. The scarcity of new constructions is a key driver of this trend.
Sources: Frisshirek.hu, LakasMarket.hu
4) Residential property insurance costs in Hungary are expected to rise by about 6% by 2025 due to higher property values
The cost of insuring homes in Hungary has been steadily climbing.
In 2024, the average insurance cost for a typical home rose by 5% to 59,000 forints, while the value of the insured square meter increased by 7%. This trend is expected to persist as property values continue to rise. The Magyar Nemzeti Bank (MNB) noted that by April 2024, the average insurance cost had reached 59,266 forints, with a consistent 7% increase in the insured square meter value.
Several factors are driving these changes. The MNB has been actively working to improve transparency and competition in the insurance market. This effort has resulted in more online transactions and a greater number of new and modified insurance contracts, which in turn affects pricing.
As property values increase, the cost of insuring these properties naturally follows suit. This is a key reason why the average cost of insuring a residential property in Hungary is projected to increase by about 6% by 2025. The higher property values are a significant factor in this projected rise.
For potential property buyers, understanding these trends is crucial. The ongoing changes in the insurance market, driven by both regulatory efforts and market dynamics, mean that costs are likely to continue rising. This is something to keep in mind when considering purchasing a property in Hungary.
Sources: Bank360.hu, Magyar Nemzeti Bank (MNB)
5) By 2025, 20% of homes in Hungary are expected to have solar panels, showing a shift towards renewable energy
By 2025, 20% of residential properties in Hungary will have solar panels, marking a significant move towards renewable energy.
Hungary has been pushing hard for renewable energy, especially solar, to cut down on fossil fuel use and tackle climate change. The government rolled out several incentives, like the "Napenergia Plusz Program," which offers up to 5 million Hungarian forints in non-repayable subsidies for solar panel installations. This makes it easier for homeowners to go green.
The expected rise in solar-equipped homes is part of a larger plan to create a sustainable energy mix. This shift is not just about saving the planet; it's also about saving money. Over the years, the cost of solar panels has dropped significantly, making them more accessible to the average homeowner.
For those considering buying property in Hungary, this trend means potential savings on energy bills and a smaller carbon footprint. The government's support and the decreasing costs make solar panels a smart investment. Homeowners can benefit from reduced energy costs while contributing to a cleaner environment.
Moreover, this move aligns with global trends where countries are increasingly adopting renewable energy sources. Hungary's efforts are part of a broader international push to embrace cleaner energy. This aligns with global strategies for affordable and fair clean energy transitions, as highlighted by international reports.
Sources: Napenergia Plusz Program, International Energy Agency (IEA) Report
Don't buy the wrong property, in the wrong area of Hungary
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Rental property demand in Hungary's university towns is expected to grow by about 15% by 2025, driven by student populations
The demand for rental properties in Hungary's university towns is set to grow by about 15% by 2025, largely due to the rising student population.
In recent years, particularly in 2023 and 2024, over 100,000 students were admitted annually to Hungarian universities, marking a significant uptick. This influx of students has created a pressing need for more student housing, especially in Budapest.
In 2023, 57,000 students applied for just 17,000 available spots, clearly showing the gap between what's needed and what's available. This shortage continued into 2024, further boosting the demand for rental properties in these areas.
The rental market itself has been experiencing growth. In 2023, there was a 14% increase in demand for rentals, primarily driven by university admissions. This trend is expected to persist, with rental prices climbing both nationally and in Budapest.
However, affordability is a growing concern. Rental prices are predicted to rise by 5-10%, making it tough for students and those on lower wages to find affordable housing. This price hike poses a challenge for many who are already struggling to make ends meet.
Sources: Hungary's Student City, Surge in rental market prices amid growing demand in Hungary, Shocking: Renting in Hungary's cities leaves workers empty-handed
7) Renovation costs for residential properties in Hungary are expected to rise by about 8% by 2025 due to higher material prices
In Hungary, renovation costs for residential properties are climbing due to rising material prices.
Back in 2023 and 2024, the average renovation costs were between 120,000 to 200,000 HUF per square meter. This range depended on the type of work and materials used. As material prices continue to rise, it's expected that these costs will increase by about 8% by 2025.
Budapest's real estate market is hot, with high demand driving up property prices. This demand also affects renovation costs, as more people are eager to upgrade their homes.
Efforts to boost energy efficiency, as noted in the National Building Energy Performance Strategy, could further increase renovation expenses. Energy-efficient upgrades often require specialized materials and techniques, adding to the overall cost.
For example, the cost of materials like flooring can vary widely, depending on the type and complexity of the design. This fluctuation in material prices is a key factor in the rising renovation costs.
Sources: Lakásfelújítás árak 2025, Penzcentrum.hu, National Building Energy Performance Strategy
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.