Review of the Budapest real estate market

The Budapest real estate market has seen notable changes recently, characterized by rising property prices, strong demand, and new regulatory measures.
Property Prices and Market Activity
In October 2024, Budapest witnessed a surge in property transactions, totaling approximately 10,738 deals—a 10% increase from the previous month and a significant 37% rise year-on-year. Investors drove much of this activity, comprising 40% of the transactions, with an average property purchase price of HUF 58.7 million (about EUR 143,000). The National Bank of Hungary (MNB) reported a 16% annual increase in home sales during the third quarter, with transactions in Budapest growing by 31%. Home prices rose by 13% nationwide and nearly 15% in Budapest during the same period.
Government Initiatives
To boost the housing market, the Hungarian government has proposed a tax-free use of private pension savings for housing purposes starting in 2025. This policy could channel up to 1 trillion forints (EUR 2.5 billion) into the market, potentially increasing property prices by 10-15% in major cities, including Budapest.
Short-Term Rental Regulations
Budapest’s sixth district recently voted to ban short-term rentals, such as Airbnb, starting from 2026, citing concerns over housing affordability and quality of life. This move is part of broader government considerations, including a potential moratorium on new short-term rental licenses and increased taxation on such properties.
Market Trends
Certain districts, like District 13, are gaining popularity among investors, while others, such as Újbuda and District 2, are seeing growing interest due to shifting demand caused by the new regulations. Rental prices in Budapest have stabilized, with an average monthly rent of HUF 250,000 (around EUR 610), suggesting affordability constraints even as demand remains robust.
Outlook
Budapest’s real estate market remains dynamic, influenced by evolving policies, economic factors, and shifting preferences of buyers and tenants. Stakeholders should stay informed to navigate these developments effectively.