Hungarian real estate market

The Hungarian real estate market has undergone significant changes in recent years, reflecting both domestic economic trends and global influences. After a downturn in 2023 caused by economic difficulties and reduced government support, 2024 has brought signs of recovery in the sector.
Market Situation: Supply and Demand
Real estate market activity in Hungary has increased significantly in early 2024. In the first quarter, transaction volumes rose by 43% compared to the same period the previous year, while mortgage lending grew by 80%. Despite these trends, price growth remained modest, creating favorable conditions for prospective buyers.
Price Dynamics
The average price of housing in the secondary market in Hungary is approximately 760,000 HUF per square meter (around €1,900), which is a 9% increase compared to the previous year. In Budapest, prices vary widely: in central districts such as V and I, prices can reach 1.2 million HUF per square meter (around €3,280), while less central areas offer more affordable options.
Government Support and Mortgages
In January 2024, Hungary introduced a revised government assistance program for families with multiple children. Instead of direct grants, such as the previously available 15 million HUF for housing when having a third child, families can now access mortgages with a subsidized interest rate of up to 3%. However, strict income requirements limit the accessibility of this program for many households.
Foreign Investment
Foreign buyers continue to show strong interest in Hungarian real estate, especially in Budapest and areas around Lake Balaton. A “golden visa” program, set to launch in 2025, will allow investors to obtain residency in exchange for real estate investments, further enhancing the country’s appeal to international buyers.
Rental Market
Rental prices in Hungary are steadily increasing, with monthly growth averaging 1–2%. As of June 2024, the average rent for an apartment in Budapest was around €636 per month. This growth is driven by high demand and limited supply in the rental market.
Construction Activity
A decline in construction activity in 2023 led to a 38.6% reduction in the number of building permits issued. However, in 2024, a new government program offering renovation loans is expected to revive the sector. Owners of homes built before 1991 can now receive loans of up to 7 million HUF to modernize their properties.
Future Outlook
Experts predict continued recovery in Hungary’s real estate market throughout 2024. Transaction volumes are expected to grow by 15–20%, potentially reaching approximately 120,000 deals by the end of the year. However, the market’s long-term development will depend on economic stability and ongoing government support.
Conclusion
The Hungarian real estate market in 2024 demonstrates promising trends. Increased buyer interest, recovering construction activity, and reformed government assistance programs are driving growth. Nonetheless, additional measures are needed to ensure housing affordability for a broader population and to attract new investors.