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
Hungary's residential property market has seen strong price growth through 2025, with Budapest leading the charge and new-build prices climbing into premium territory.
Foreign buyers can still purchase apartments in Hungary, though non-EU citizens need a government permit, and short-term rental regulations have tightened significantly in central Budapest districts.
We constantly update this blog post to reflect the latest market data, regulatory changes, and neighborhood-level insights for property buyers in Hungary.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Hungary.
What's the Current Real Estate Market Situation by Area in Hungary?
Which areas in Hungary have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Hungary for residential property are District V (Belvaros-Lipotvaros) near Parliament, District I (Varkerulet) around the Castle District, and District II (Rozsadomb and Pasaret) in the Buda hills.
In these premium Budapest neighborhoods, typical asking prices in early 2026 range from HUF 1.6 million to HUF 2.7 million per square meter, with top-renovated or new-build apartments often exceeding HUF 2 million per square meter.
Each of these expensive areas commands high prices for different reasons:
- District V (Belvaros-Lipotvaros): walkable central business district with permanent scarcity and strong tourist demand
- District I (Varkerulet): UNESCO-listed Castle area with historic prestige and limited new construction
- District II (Rozsadomb): green hillside living with embassies, international schools, and family-friendly quiet
- District XII (Svabhegy): villa-style properties near Normafa forest with panoramic city views
Which areas in Hungary have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Hungary for residential property are outer Budapest districts like Soroksar (District XXIII), Csepel (District XXI), Pesterzsebet (District XX), and regional cities like Miskolc and Salgotarjan in Northern Hungary.
In these more affordable Budapest districts, typical apartment prices in early 2026 range from HUF 850,000 to HUF 1.15 million per square meter, while regional cities outside Budapest can be dramatically cheaper.
However, buyers should expect trade-offs: outer Budapest districts like Soroksar and Csepel have weaker public transit connections and fewer amenities, while regional cities like Miskolc offer lower liquidity, meaning resale can take longer if you need to exit your investment quickly.
You can also read our latest analysis regarding housing prices in Hungary.
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.
Which Areas in Hungary Offer the Best Rental Yields?
Which neighborhoods in Hungary have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Hungary with the highest gross rental yields are District VIII (Jozsefvaros, especially around Corvin-negyed), District IX (Ferencvaros near Raday utca), District XIII (Angyalfoldin Budapest), and regional university cities like Debrecen, Szeged, and Gyor.
Across Budapest as a whole, typical gross rental yields for well-located investment properties range from 4.5% to 6.5%, while regional cities can deliver 5% to 8% gross yields depending on the specific neighborhood.
These top-yielding neighborhoods deliver higher returns than prime areas for specific reasons:
- District VIII (Corvin-negyed): student and young professional demand with prices not yet at prime levels
- District IX (Ferencvaros): university proximity plus office workers creates deep tenant pool year-round
- District XIII (Vaci ut corridor): corporate renters from nearby offices support stable long-term demand
- Debrecen (Nagyerdo): Hungary's second-largest university drives consistent rental demand at lower entry prices
Finally, please note that we cover the rental yields in Hungary here.
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Which Areas in Hungary Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Hungary perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Hungary that perform best on Airbnb are District V (Belvaros-Lipotvaros), District VII (Erzsebetvaros around Gozsdu Udvar), District IX (Belso-Ferencvaros near the Great Market Hall), and District I (Varkerulet around the Castle).
Top-performing Airbnb properties in these Budapest neighborhoods can generate monthly revenues ranging from HUF 400,000 to HUF 900,000, depending on property size, quality, and management.
Each neighborhood outperforms for specific reasons:
- District V (Belvaros): walk-to-everything location near Parliament and Danube promenade attractions
- District VII (Jewish Quarter): nightlife hub with ruin bars drawing younger tourists year-round
- District IX (Ferencvaros): Great Market Hall proximity appeals to food-focused travelers
- District I (Castle): historic setting attracts premium guests willing to pay higher nightly rates
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hungary.
Which tourist areas in Hungary are becoming oversaturated with short-term rentals?
The three tourist areas in Hungary becoming most oversaturated with short-term rentals are inner District VII (Erzsebetvaros party zone), parts of District V (Belvaros around Vaci utca), and District VI (Terezvaros), which now has a confirmed short-term rental ban effective January 2026.
In these oversaturated Budapest areas, short-term rental density has reached levels where hundreds of active listings compete within just a few city blocks, particularly in the inner Erzsebetvaros party district.
The clearest indicator of oversaturation in these Hungary neighborhoods is not just listing volume but regulatory crackdown: District VI's short-term rental restriction was upheld by Hungary's Supreme Court (Kuria) and took effect January 1, 2026, signaling that authorities view these areas as having exceeded sustainable tourism capacity.
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.
Which Areas in Hungary Are Best for Long-Term Rentals?
Which neighborhoods in Hungary have the strongest demand for long-term tenants?
The neighborhoods in Hungary with the strongest demand for long-term tenants are District XI (Lagymanyos and Kelenfold), District XIII (Ujlipotvaros and Angyalfold), District IX (Belso-Ferencvaros), and regional university quarters like Debrecen's Nagyerdo and Szeged's Belvaros.
In these high-demand Budapest neighborhoods, well-priced rental apartments typically find tenants within two to four weeks, with vacancy rates staying low thanks to structural demand from students, professionals, and corporate relocations.
Different tenant profiles drive demand in each area:
- District XI (Lagymanyos): university students from Budapest University of Technology and young families
- District XIII (Vaci ut corridor): corporate employees and expat professionals from nearby office parks
- District IX (Ferencvaros): Corvinus University students and early-career professionals in creative industries
- Debrecen (Nagyerdo): medical students and university staff from Hungary's second-largest university
The key characteristic making these neighborhoods attractive is transport connectivity: District XI and XIII both have excellent metro and tram access, while District IX benefits from proximity to both universities and the city center.
Finally, please note that we provide a very granular rental analysis in our property pack about Hungary.
What are the average long-term monthly rents by neighborhood in Hungary in 2026?
As of early 2026, average monthly rents in Hungary vary significantly by Budapest district: District V (Belvaros) commands HUF 280,000 to 420,000 for a one-bedroom, while outer districts like Soroksar or Csepel range from HUF 160,000 to 240,000 for similar apartments.
For entry-level apartments in Hungary's most affordable Budapest neighborhoods (Districts XX, XXI, XXIII), typical monthly rents for a one-bedroom in early 2026 range from HUF 160,000 to HUF 240,000.
In average-priced Budapest neighborhoods like District XI (Kelenfold) or District VIII (Corvin-negyed), mid-range one-bedroom apartments typically rent for HUF 210,000 to HUF 330,000 per month in early 2026.
For high-end apartments in Hungary's most expensive neighborhoods like District V (Lipotvaros) or District II (Rozsadomb), premium one-bedrooms command HUF 280,000 to HUF 420,000 monthly, with two-bedrooms reaching HUF 400,000 to HUF 650,000.
You may want to check our latest analysis about the rents in Hungary here.
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Which Are the Up-and-Coming Areas to Invest in Hungary?
Which neighborhoods in Hungary are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Hungary that are gentrifying and attracting new investors are District VIII (Corvin-negyed and surrounding blocks), District IX (Belso-Ferencvaros around Raday utca), District XI (Bartok Bela ut corridor), and District XIII (Angyalfold near the Vaci ut office zone).
These gentrifying Budapest neighborhoods have experienced annual price appreciation of roughly 10% to 15% over recent years, outpacing the Budapest average as rehabilitation projects and tenant demand converge.
Which areas in Hungary have major infrastructure projects planned that will boost prices?
The areas in Hungary with major infrastructure projects expected to boost property prices are neighborhoods along the Ferencvaros-Kelenfold rail corridor in South Budapest and areas benefiting from Budapest's Mobility Plan (BKK) improvements.
Specific projects include rail capacity upgrades affecting Kelenfold station (a major commuter hub) and planned tram and cycling infrastructure improvements that will reduce commute times from District XI and IX neighborhoods into central Budapest.
Historically in Hungary, neighborhoods that gain new metro or major transit connections have seen price increases of 15% to 25% within two to three years of project completion, though timing depends heavily on actual delivery rather than announcements.
You'll find our latest property market analysis about Hungary here.
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.
Which Areas in Hungary Should I Avoid as a Property Investor?
Which neighborhoods in Hungary with lots of problems I should avoid and why?
The neighborhoods in Hungary that investors should generally approach with caution are District VI (Terezvaros) for short-term rental strategies, inner District VII (Erzsebetvaros party zone) for quiet long-term tenants, and any building with poor condominium finances regardless of location.
Each problem area has specific issues:
- District VI (Terezvaros): short-term rental ban effective January 2026 makes Airbnb investment legally unviable
- Inner District VII (party zone): high tenant turnover and noise complaints make stable long-term renting difficult
- Low-liquidity regional towns: single-employer dependency means demand can collapse if that employer leaves
- Poorly-managed condominiums: old wiring, damp issues, and weak reserve funds can dominate any location benefits
For these areas to become viable, District VI would need its short-term rental ban reversed (unlikely soon), while problematic buildings would need major renovation investment and professional management, which often requires unanimous owner agreement.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Hungary.
Which areas in Hungary have stagnant or declining property prices as of 2026?
As of early 2026, Hungary is not broadly experiencing declining property prices; rather, the market showed strong growth through 2025, but some micro-markets show signs of stagnation where listings sit longer than average.
Areas showing price stagnation rather than decline are typically overpriced listings in thin regional markets or neighborhoods hit by regulatory changes, with asking prices sometimes sitting 5% to 10% above achievable transaction values.
The underlying causes vary by area:
- District VI (STR-dependent blocks): January 2026 short-term rental ban removed a key demand driver
- Remote regional towns: limited employment options and outmigration reduce buyer pools
- Overpriced inner-city listings: sellers anchored to peak asking prices face longer marketing times
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Which Areas in Hungary Have the Best Long-Term Appreciation Potential?
Which areas in Hungary have historically appreciated the most recently?
The areas in Hungary that have historically appreciated the most over the past five to ten years are Budapest overall (outpacing regional markets), and within Budapest, Districts XI, XIII, VIII, and IX have shown particularly strong re-rating.
Here are the approximate appreciation figures for top-performing areas:
- District XI (Kelenfold, Lagymanyos): roughly 80% to 100% total appreciation over 2019 to 2024
- District XIII (Ujlipotvaros, Angyalfold): similar strong growth driven by office corridor development
- District IX (Ferencvaros): rehabilitation projects helped prices roughly double in desirable blocks
- District VIII (Corvin-negyed): selective blocks near the Corvin development saw above-average gains
The main driver of above-average appreciation in these Hungary neighborhoods was the combination of improving infrastructure, growing tenant demand from students and professionals, and entry prices that were initially lower than prime Buda districts.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Hungary.
Which neighborhoods in Hungary are expected to see price growth in coming years?
The neighborhoods in Hungary expected to see the strongest price growth in coming years are District XI (Kelenfold and transport-linked subareas), District XIII (Vaci ut corridor housing), District IX (Belso-Ferencvaros), and regional university cities like Debrecen and Szeged.
Projected growth varies by area:
- District XI (Kelenfold): expected 6% to 10% annual growth as transport upgrades complete
- District XIII (Angyalfold): similar trajectory driven by office corridor spillover demand
- Debrecen (Nagyerdo, Belvaros): 5% to 8% annual growth supported by university and employer expansion
- Szeged (Belvaros, Ujszeged): steady 4% to 7% growth from student demand and relative affordability
The single most important catalyst for future price growth in these Hungary neighborhoods is sustained demand from domestic buyers and renters, combined with limited new supply in established residential areas.
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.
What Do Locals and Expats Really Think About Different Areas in Hungary?
Which areas in Hungary do local residents consider the most desirable to live?
The areas in Hungary that local residents consider most desirable to live are District XII (Svabhegy and Normafa area), District II (Rozsadomb and Pasaret), and District XI (Gellerthegy and Sasad for families).
Each area is desirable for different reasons:
- District XII (Svabhegy): forest access, clean air, and quiet residential streets with city views
- District II (Rozsadomb): prestigious hillside addresses with excellent schools and green spaces
- District XI (Sasad): family-friendly with good transport links and newer housing stock
The typical residents in these locally-preferred Hungary areas are established Hungarian families, senior professionals, and higher-income households who prioritize quality of life over proximity to nightlife.
Local preferences in Hungary partially align with foreign investor targets: both groups value Districts II, XI, and XII, but locals often prioritize quiet and green space, while foreign investors sometimes over-emphasize central tourist districts that locals find noisy.
Which neighborhoods in Hungary have the best reputation among expat communities?
The neighborhoods in Hungary with the best reputation among expat communities are District II (Rozsadomb and Pasaret), District XII (Svabhegy and Nemetvolgyi), District XI (Gellerthegy and Sasad), and District V (Lipotvaros) for urban expats who prefer walkability.
Expats prefer these neighborhoods for specific reasons:
- District II (Pasaret): proximity to international schools, embassies, and English-speaking services
- District XII (Svabhegy): villa-style housing with gardens, popular with diplomatic families
- District XI (Sasad): newer apartments with parking, good value compared to District II
- District V (Lipotvaros): walk-to-work convenience for professionals in central Budapest offices
The typical expat profile in these popular Hungary neighborhoods includes diplomatic staff, multinational executives, remote workers from Western Europe, and international school families seeking English-language community infrastructure.
Which areas in Hungary do locals say are overhyped by foreign buyers?
The areas in Hungary that locals commonly say are overhyped by foreign buyers are inner District VII (Erzsebetvaros party zone), certain micro-pockets of District V (Belvaros near Vaci utca), and District VI (Terezvaros) before its short-term rental restrictions.
Locals believe these areas are overvalued for specific reasons:
- Inner District VII: great for weekend tourism but noisy, with high turnover and party crowds
- District V (tourist blocks): yields get compressed versus price, making pure investment returns weak
- District VI (pre-ban): foreigners paid premiums for STR potential that regulation has now removed
Foreign buyers typically value walkability to tourist attractions and nightlife that locals do not prioritize for daily living, creating a gap between what foreigners pay and what the neighborhoods deliver for long-term residents.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Hungary.
Which areas in Hungary are considered boring or undesirable by residents?
The areas in Hungary that residents commonly consider boring or undesirable are far-outer Budapest districts with weak transit (parts of Districts XXII, XXIII, and XVII) and monofunctional housing estates with limited amenities.
Residents find these areas less appealing for specific reasons:
- Far-outer districts (XXII, XXIII): car-dependent with long commutes and few restaurants or shops
- Large housing estates (various districts): uniform architecture, variable building quality, limited street life
- Industrial-adjacent areas: proximity to warehouses or factories without compensating amenities
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Hungary, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Hungarian Central Statistical Office (KSH) | Hungary's official statistics agency publishing core housing price data. | We anchored all Hungary-wide and Budapest price levels to KSH transaction-based statistics. We used their annual growth rates to estimate early 2026 values. |
| Hungarian National Bank (MNB) | Central bank synthesizing market, lending, and pricing data. | We used MNB reports for new-build pricing and investor behavior analysis. We cross-checked yield trends and bargaining patterns against their findings. |
| ingatlan.com | Hungary's largest residential property portal with district-level data. | We used their listings for district-level price differentiation. We treated their data as asking-price evidence, triangulating with official sources. |
| KSH-ingatlan.com Rent Index | Joint experimental index combining official methodology with listing data. | We anchored all Budapest rent ranges to this index. We used sub-market groupings to differentiate inner versus outer districts. |
| Duna House Barometer | Major broker network publishing regular transaction-based market reports. | We used their data to sanity-check price levels and market turning points. We treated it as private-sector triangulation alongside official sources. |
| AirDNA | Widely-used short-term rental analytics provider with transparent methodology. | We used their Budapest occupancy and ADR data for STR performance benchmarks. We did not use them for legal or regulatory information. |
| Inside Airbnb | Open-data project for STR market research and supply analysis. | We validated where short-term rental supply concentrates by district. We used it as a structural cross-check for density patterns. |
| Kuria (Supreme Court of Hungary) | Hungary's highest court confirming the legality of local regulations. | We used their ruling to confirm District VI's short-term rental ban as legal reality. We avoided rumor-based STR regulation claims. |
| National Legislation Database (njt.hu) | Official repository of Hungarian law texts. | We referenced Government Decree 251/2014 for foreigner property acquisition rules. We ensured legal statements were text-based, not interpretive. |
| Global Property Guide | International property research site compiling official statistics. | We used their regional price gap analysis to identify affordability patterns. We cross-referenced Hungary's position within European markets. |
| BKK Budapest Mobility Plan | Official city transport authority publishing infrastructure priorities. | We identified which areas will benefit from planned transport improvements. We avoided citing speculative projects without confirmed funding. |
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