The Current State of the Budapest Real Estate Market

The Budapest real estate market is showing significant growth, characterized by an increase in transactions, rising prices, and changes in regulatory policies. Here’s an overview of the key updates and trends:
Market Growth and Rising Prices
• In October 2024, approximately 10,738 transactions were recorded in Budapest, representing a 10% increase from September and a 37% rise compared to October 2023.
• Investors remain key players, accounting for 40% of all transactions, with an average property purchase price of HUF 58.7 million (around EUR 143,000).
• According to the National Bank of Hungary (MNB), property prices have increased by 13% nationwide and 15% in Budapest over the past year.
Government Initiatives
• Starting in 2025, the government plans to allow the use of private pension savings for property purchases, tax-free. This measure is expected to inject up to HUF 1 trillion (around EUR 2.5 billion) into the market, potentially driving property prices up by 10-15% in major cities like Budapest.
Restrictions on Short-Term Rentals
• Budapest’s Sixth District has approved a ban on short-term rentals, including Airbnb, starting in 2026. The decision aims to improve housing affordability for local residents.
• The government is also considering broader measures, such as a moratorium on new short-term rental licenses and increased taxes on these properties.
Trends
• Popular Districts: District 13 remains a favorite for investors, but areas like Újbuda and District 2 are gaining traction due to shifting demand.
• Stable Rental Prices: The average monthly rent in Budapest has reached HUF 250,000 (approximately EUR 610), indicating a ceiling in affordability for many tenants.
Outlook
The Budapest real estate market continues to grow, but its future depends heavily on regulatory changes. New laws could shift investor interests and affect the popularity of specific districts. Market participants need to stay informed to make well-informed decisions.
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