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What is happening in Hungary’s real estate market? Are prices on the rise or decline? Is Budapest still a magnet for international investors? How are Hungary’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Hungary, from Budapest to Debrecen and beyond. Maybe you’re curious about these topics too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Hungarian real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Hungary’s property prices will stabilize after rapid growth, with some areas seeing slight declines
Hungary's property market has been on a wild ride, but now things are calming down.
With interest rates hitting 15.3% in 2023, getting a mortgage has become a lot tougher, which means fewer people are buying homes. This has naturally led to a dip in demand, causing prices to stabilize. The high rates are a big deal because they directly impact how much people can afford to borrow, making it harder for many to jump into the market.
On the economic front, Hungary's GDP growth slowed to 1.7% in 2023, which usually means the housing market cools off too. Even though the nominal housing market dynamics showed a 5.8% rise, when you factor in inflation, prices actually dropped by 1.8% in real terms. So, while it might look like prices are going up, they're really just leveling out.
Budapest is seeing a boom in new homes, which is another reason for the price stabilization. More homes on the market often lead to slight price drops because there's more to choose from. This is backed up by consumer surveys showing that fewer people are looking to buy, with 2023 seeing a notably low number of transactions.
For those eyeing a property in Hungary, this could be a good time to explore options, especially in areas where prices are slightly declining. The increased supply, particularly in urban areas, means buyers might find more competitive pricing and better deals.
Sources: Global Property Guide, Trading Economics, MNB Housing Market Report
In this video, we can see that Hungary's residential property prices are stabilizing after rapid growth, with some areas experiencing slight declines.
2) Foreign buyers will increasingly target Hungary’s residential market due to favorable exchange rates
Hungary's residential market is becoming a hot spot for foreign buyers, thanks to favorable exchange rates.
With the Hungarian forint weakening against the euro, properties in Hungary are now more affordable for international investors. Experts like László Balogh highlight that this currency shift allows foreigners to snag homes at attractive prices, turning them into appealing investment opportunities.
In 2023, the market saw a significant uptick in foreign property transactions. According to data from ingatlan.com and the Hungarian Central Statistical Office, foreigners purchased 8,000 homes, marking a 38% increase from the previous year. Real estate agencies like ingatlan.com report that this trend is likely to continue, fueled by the favorable exchange rates and new regulations.
Germans, Slovaks, Romanians, and Brits are leading the charge among foreign buyers. Notably, Germans have ramped up their purchases by 70% compared to 2021. There's also a growing interest from non-EU countries like the US, Turkey, Indonesia, and Switzerland, showing a broadening appeal.
These buyers are not just looking for vacation homes; many see Hungary as a strategic investment. The combination of affordable prices and a stable market makes it an attractive option for those looking to diversify their portfolios.
Sources: XpatLoop, Accace, Daily News Hungary
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.
3) Miskolc will draw more investors with its affordable property prices and improving local economy
Miskolc is catching the eye of investors thanks to its affordable property prices and a growing local economy.
One big reason for this interest is the significant investment by major companies like Bosch. For instance, Robert Bosch Energy and Body Systems Kft. is pouring over HUF 18 billion (about EUR 45 million) into Miskolc. This investment will boost the development and testing of electric drives and expand manufacturing capacity by mid-2025.
Compared to other Hungarian cities, Miskolc offers lower property prices, making it a more attractive option for investors. In Budapest, living costs are 20.6% higher without rent and 33.8% higher with rent. The local government is also encouraging growth by offering non-refundable cash grants of around HUF 3 billion (approximately EUR 7.5 million) to support investments like Bosch’s.
Infrastructure improvements are another draw for investors. The resort area of Miskolctapolca is undergoing a major infrastructure development project worth about EUR 3.2 million, including road renovations and utility upgrades. These enhancements not only improve life for residents but also make Miskolc more appealing to investors.
Media coverage and government announcements have been highlighting Miskolc as an emerging investment hotspot, which adds to its allure. The city is gaining a reputation as a place where investors can find good opportunities.
With these developments, Miskolc is becoming a prime location for investment, offering a mix of affordability and growth potential that is hard to ignore.
Sources: Hipa, Building Connections, Numbeo
We believe this video highlights Miskolc's appeal for property investors, showcasing affordable prices and a growing economy.
4) Budapest’s property prices will rise moderately as demand stays strong in the capital
Budapest's property prices are on the rise, and here's why you might want to pay attention.
First off, there's been a 30% jump in property transactions in Budapest by the end of the first quarter of 2024. This surge indicates a growing interest in buying homes in the city, making it a hot spot for potential buyers.
Foreign investors are also eyeing Budapest, with projections showing they'll pump over HUF 1,000 billion into the market by 2025. This influx, driven by government bonds and pension savings, is expected to zero in on Budapest properties, pushing demand and prices up.
Adding to the mix is the limited supply of new homes. In the latter half of 2023, only 1,390 new homes were sold, a sharp 50% drop from the previous year. This scarcity means existing properties are in high demand, further nudging prices upward.
For those considering a move or investment, Budapest's real estate market is buzzing with activity. The combination of increased transactions, foreign investment, and limited new housing options creates a perfect storm for rising property values.
Sources: Daily News Hungary, MNB Housing Market Report, Bank360
5) Investors will focus on Pécs for its cultural and historical real estate value
Pécs is turning heads among investors who are keen on cultural and historical real estate.
In 2024, the city experienced a noticeable uptick in tourism, thanks to events like the Sétatér Festival. This festival, held right in front of the iconic Cathedral of Pécs, is a vibrant showcase of concerts, exhibitions, and local crafts, all of which highlight the city's rich cultural tapestry. The festival not only draws in locals but also attracts international visitors, adding to the city's allure.
The Hungarian tourism industry had a robust summer in 2024, with an 11% increase in tourist arrivals. This surge is a testament to Pécs' growing reputation as a cultural hotspot. The city's dedication to hosting cultural events and festivals is a big draw for investors looking for properties with a unique cultural edge.
Beyond festivals, Pécs is making waves with initiatives like the Learning City Programme. This program is all about lifelong learning and community development, weaving in elements of sustainability and health. Such efforts highlight the city's commitment to preserving its cultural heritage, making it a compelling choice for those eyeing real estate with historical value.
Investors are taking note of Pécs' proactive approach to promoting its cultural and historical significance. The city's blend of vibrant festivals and educational initiatives positions it as a prime location for those seeking properties with cultural depth.
Sources: BBJ, Hello Hungary, UNESCO
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6) Foreign buyers will increasingly target urban areas like Budapest for better investment returns
Foreign buyers are increasingly eyeing urban areas like Budapest for better investment returns.
Budapest's property market is booming, with the average cost of a new apartment hitting HUF 79 million in 2024. This is a significant jump from the previous year and 26% higher than the national average, showing strong demand and potential for capital appreciation. The city's vibrant real estate scene is a magnet for those looking to invest wisely.
Rental yields in Budapest are another big draw. Investors can expect gross rental yields of 5-7% per annum, which is more attractive than in other Hungarian cities. This makes Budapest a hotspot for rental property investments, especially in the bustling inner districts of Pest, where foreign nationals are snapping up properties.
Beyond numbers, Budapest offers a lifestyle that appeals to international buyers. Known for its safety and welcoming vibe, the city boasts a high quality of life. Ongoing infrastructure projects are enhancing connectivity and accessibility, further boosting property values and making Budapest even more appealing.
Foreign investment is pouring into Budapest's real estate market, with international buyers accounting for a significant share of property transactions. This trend underscores the city's allure as a prime location for those seeking solid returns on their investments.
Budapest's mix of urban amenities, lifestyle, and investment potential makes it a top choice for foreign buyers. The city's dynamic environment and promising returns are hard to resist for those looking to invest in urban areas.
Sources: eSales International, CRWW Group, World Estate Homes
7) Yields in smaller Hungarian cities will stay stable with strengthening local economies
Yields in smaller Hungarian cities are expected to stay stable as local economies get stronger.
One big reason for this stability is the rising employment rates in these areas. In 2023, Hungary's unemployment rate was lower than the OECD average, with sectors like construction and retail seeing growth. This trend continued into 2024, giving local economies a solid boost.
Government initiatives have also been a game-changer. Infrastructure projects, like new bridges and better transportation links, have made these cities more connected and appealing. This has attracted both businesses and residents, fueling economic growth.
The government's focus on economic diversification and regional growth has created a favorable business environment. This has led to more local startups and increased investor confidence, keeping property prices and rental demand stable or even on the rise.
These smaller cities are becoming hotspots for new opportunities, thanks to improved infrastructure and government support. As a result, they're drawing in more businesses and residents, which is great for the local economy.
With all these positive changes, it's no wonder that investors are feeling confident about putting their money into these areas. The combination of strong local economies and stable property markets makes these cities an attractive option.
Sources: China CEE, Hungary Today, ING Think
8) Rental yields in tourist-heavy areas will fluctuate due to market volatility
In tourist hotspots like Budapest, the rental market is experiencing significant ups and downs.
During the COVID-19 pandemic, tourist numbers plummeted, which hit rental demand and prices hard. Even though rents in Hungary jumped by 12.43% in August 2023 compared to the previous year, this wasn't a steady trend throughout the year. The market's unpredictability is something to keep an eye on if you're considering buying property here.
Local regulations are also shaking things up. The Hungarian government plans to raise the flat tax on short-term rentals in Budapest from HUF 38,400 to HUF 150,000 per room by 2025. Plus, there's a two-year freeze on new short-term rental licenses to tackle the housing crisis. These changes could really affect rental yields and market stability, so it's crucial to stay informed.
Seasonal tourist flows add another layer of complexity. For instance, while rents in Budapest rose by 12.55% in August 2023 compared to the previous year, inflation-adjusted rents actually fell by 3.27%. This shows how rental yields can swing depending on the season and tourist activity, making it a bit of a gamble.
Understanding these dynamics is key if you're thinking about investing in property here. The rental market's volatility, driven by fluctuating tourist numbers and regulatory changes, means that yields can be unpredictable. It's a market that requires careful consideration and a good grasp of the local landscape.
Sources: Global Property Guide, XpatLoop, Sustainable Travel
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.
9) Hungarian buyers will prioritize energy-efficient homes to cut living costs
Energy costs in Hungary have been on the rise, making energy-efficient homes more attractive to buyers.
In 2023, household energy bills shot up due to increased electricity and gas prices. This has pushed many to look for ways to cut costs, with energy efficiency becoming a top priority.
The Hungarian government is actively supporting this shift by offering incentives like tax breaks and low-interest loans for energy-efficient home improvements. These financial perks make it easier for homeowners to invest in solutions that save energy and money.
People's preferences are changing too. A 2023 survey found that 70% of homebuyers now consider energy efficiency crucial when choosing a new home. This shows a strong consumer desire to save on energy costs and be more eco-friendly.
Sources: KSH, Kormany.hu, Közgazdasági Akadémia
In this video, we can see that demand for solar power systems in Hungary has reached an all-time high, indicating a growing interest in energy-efficient homes.
10) Home office-equipped properties will gain popularity as remote work increases
Remote work has surged in Hungary, with a notable increase in people working from home.
Back in 2019, only about 36,000 people in Hungary worked remotely, but by 2023, that number had skyrocketed to over 151,000 individuals. This shift is even more pronounced in Budapest, where nearly 183,000 people were working from home by 2023. The city has become a hub for remote work, transforming how people think about their living spaces.
Globally, the trend is similar. A McKinsey report highlighted that 58% of employees had the option to work from home at least part-time. This shift in work culture is reshaping the real estate market, with more listings now emphasizing home office features. Buyers are increasingly looking for properties that can accommodate a comfortable and efficient workspace.
In Hungary, companies like Alex Furniture have seen a boom in demand for home office furniture, indicating a broader trend. Their growth in European clientele shows that people are investing in creating better work environments at home. This demand is pushing architects to design homes with improved office spaces, focusing on natural light and ergonomic setups.
As more people work from home, properties with dedicated office spaces are becoming more desirable. This trend is not just about having a desk in the corner; it's about creating a space that enhances productivity and well-being. The real estate market is responding by highlighting these features in property listings.
Sources: Statista, CBRE, Alex Furniture
11) Rising international student numbers in Hungary will boost demand for rentals near universities
The number of international students in Hungary is on the rise, reaching 37.5 thousand in the 2023/2024 academic year.
With more students coming in, there's a noticeable uptick in demand for rental properties, especially near universities. In Budapest, for instance, nearly 120,000 applications for student housing have been submitted, but the national capacity is just over 46,000. This gap is even more pronounced in university towns like Szeged, where international students are willing to pay more for off-campus housing.
This willingness to pay higher rents has led to a significant increase in rental prices, rising by 20-25% compared to the previous year. Real estate agents in these areas are gearing up for a busy rental market, anticipating more property investments near educational institutions.
The Hungarian government's efforts, like the Stipendium Hungaricum scholarship program, are also playing a role in attracting international students. This initiative is further boosting the demand for rental properties, as more students look for places to stay.
In university towns, the rental market is becoming increasingly competitive, with students often having to act quickly to secure housing. This trend is pushing property owners to invest in and upgrade their offerings to meet the growing demand.
For potential property buyers, this means that investing in rental properties near universities could be a lucrative opportunity. With the number of international students expected to continue rising, the demand for student accommodation is likely to remain strong.
Sources: Statista, Daily News Hungary, Hungarian Conservative
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12) New tax incentives for first-time buyers will boost demand in the residential market
New tax incentives for first-time homebuyers are set to shake up the residential market.
Starting January 2024, the MNB is rolling out a policy allowing a 90% loan-to-value limit for first-time buyers. This means you can get a mortgage with a smaller down payment, making it easier for young folks to step onto the property ladder. It's a game-changer for those who thought homeownership was out of reach.
In early 2024, the number of housing loan contracts more than doubled compared to the previous year. This surge is thanks to better economic conditions and lower lending rates. Plus, renewed housing subsidies are making it even more attractive to buy your first home. In Budapest, the sale of new condominium flats jumped by 84% from last year's low, showing a clear demand for starter homes.
The government is also doubling the family tax allowance and keeping the 5% VAT rate on residential property sales. These moves are designed to get young adults interested in buying homes. With media coverage spreading the word about these benefits, more potential buyers are learning about the perks of these new tax incentives.
All these changes are creating a buzz in the market, making it a prime time for first-time buyers to consider purchasing a home. The combination of reduced down payments, tax breaks, and economic improvements is setting the stage for a vibrant housing market in 2024.
Sources: MNB Housing Market Report, Hungarian Conservative, MNB Press Release
13) Stricter energy efficiency rules will shape property demand
Stricter energy efficiency regulations are reshaping what buyers want in properties.
In Hungary, there's a growing interest in energy-efficient homes, partly thanks to initiatives like RenoHUb. This project focuses on maximizing energy savings in residential buildings, showing that more people are keen on homes that cut down on energy use. The Hungarian government is also encouraging this trend with a 108 billion forint scheme to help homeowners upgrade their properties. This includes subsidies for better windows, doors, and heating systems, making it easier and more appealing to invest in energy-efficient upgrades.
Rising energy costs are another factor driving this shift. As prices climb, more consumers are looking for properties that can help them save on energy bills. This awareness is pushing the demand for energy-efficient homes even further. The introduction of the Energy Efficiency Obligation Scheme in 2021 underscores a commitment to enforcing stricter regulations. This scheme aims for annual energy savings, which could make energy-efficient properties more attractive in real estate transactions.
Moreover, the introduction of the Energy Efficiency Obligation Scheme in 2021 shows a commitment to enforcing stricter regulations. This scheme aims for annual energy savings, which could make energy-efficient properties more attractive in real estate transactions.
For those considering buying property in the country, it's worth noting that these regulations and incentives are making energy-efficient homes a hot commodity. The combination of government support and rising energy costs means that homes with energy-saving features are not just trendy but also practical. As a potential buyer, looking for properties with these features could be a smart move, both for your wallet and the environment.
Sources: Habitat for Humanity, Budapest Times, Odyssee-Mure
14) Budapest’s outskirts will attract more buyers as remote work allows living further from the city center
Remote work is booming in Hungary, especially around Budapest.
Back in 2023, over 151,000 people were working remotely regularly, a massive leap from just 36,000 in 2019. This shift is even more pronounced in Budapest, where nearly 183,000 individuals embraced remote work, either occasionally or regularly. As more people work from home, they're rethinking where they want to live.
Many remote workers are now eyeing the suburbs for their next home. They crave larger spaces and greener surroundings, which are more common outside the bustling city center. Plus, suburban homes are often more affordable, making them a smart choice for those looking to stretch their budget while enjoying more comfort.
Infrastructure is also getting a boost, making suburban life even more appealing. Take the Salgótarján S-Bahn project, for instance. It's set to improve public transport in northern Hungary, making it easier for folks to commute from the suburbs. This kind of development is a game-changer for anyone considering a move out of the city.
With these changes, the outskirts of Budapest are becoming hot spots for homebuyers. The combination of remote work flexibility, better transport links, and the allure of more space is driving this trend. Media coverage is also playing a role, highlighting the perks of suburban living and encouraging more people to consider it.
So, if you're thinking about buying property, keep an eye on these suburban areas. They're becoming increasingly popular as people look for a balance between work and a better quality of life.
Sources: Statista, Statista, Hungary Today
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.
15) New infrastructure in rural Hungary will boost property investor interest in these areas
In 2025, rural Hungary is set to become a hotspot for property investors thanks to major infrastructure projects.
The Hungarian government is pouring HUF 480 billion into 300 new projects, focusing on road and railway upgrades. This means better connectivity and easier access to these charming countryside areas. Imagine the convenience of the M1 highway expansion or the revamped Hatvan-Füzesabony railway line, making travel smoother and faster.
These transportation improvements are not just about getting from A to B; they’re expected to boost property values significantly. As these rural regions become more accessible, they naturally become more attractive to investors looking for promising opportunities.
But it’s not just about roads and railways. The government is also investing in clean energy infrastructure, which is a big deal. This focus on sustainability is likely to spur business growth in these areas, creating a vibrant local economy that’s appealing to both residents and investors.
On top of that, regulatory reforms are in the works to make property transactions simpler. This means less red tape and more straightforward processes, which is a huge confidence booster for investors. It’s all about making it easier to dive into the market and start new projects.
Sources: Hungary Today, eSales International, GlobalData
16) Eastern Hungary, especially Debrecen, will attract more interest in residential real estate due to new business investments
Debrecen is buzzing with new business investments, making it a prime spot for property buyers.
Big names like BMW and CATL have set up shop here, bringing in thousands of jobs and drawing people to the area. This influx is not just about jobs; it's about transforming Debrecen into a vibrant economic hub. The Hungarian government is playing a big role, offering financial incentives to lure more companies. This support is a game-changer, making Debrecen a magnet for multinational firms.
With these businesses settling in, the demand for housing is on the rise. Local real estate agents are seeing a surge in interest from new residents eager to find homes. This isn't just a temporary spike; it's a trend that's expected to grow as more companies move in. Debrecen's real estate market is heating up, and it's a great time to consider buying property here.
What's driving this boom? It's the combination of job opportunities and the city's growing appeal. People are flocking to Debrecen not just for work but for the lifestyle it offers. The city is evolving, and with it, the real estate market is becoming more dynamic. If you're thinking about investing in property, Debrecen should be on your radar.
Insider tip: Keep an eye on the eastern regions of Hungary. With Debrecen leading the charge, these areas are set to see increased interest. The city's transformation is a sign of what's to come for the surrounding regions. As more businesses establish themselves, the ripple effect will likely boost the entire area's real estate market.
So, if you're considering a move or investment, Debrecen is a city on the rise. The combination of business growth and government support is creating a unique opportunity for property buyers. Don't miss out on the chance to be part of this exciting development.
Sources: Urbact, Hungarian Conservative, University of Debrecen
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.