Budapest Property Market: Affordable Districts in Decline
House prices in Budapest have surged in the first two months of the year, driven by record-high demand in the real estate market. Price increases have nearly matched those recorded by experts at Duna House over the entire previous year. Following a 6% rise, the average square meter price of pre-owned properties in the capital is now approaching HUF 1 million, although more budget-friendly locations can still be found in Rákosmente, Pestszentlőrinc, Pestszentimre, and Soroksár.
The real estate market in Budapest has responded to strong buyer demand with significant increases in house prices: compared to the average square meter price calculated from 2024 transactions, the asking price for houses in Budapest is now 6% higher, amounting to around HUF 996,000 (EUR 2,474) per square meter, according to Duna House data.
In January and February of this year, purchasing a home in the capital cost buyers an average of HUF 74.8 million (EUR 185,832), which is 21% higher than during the same period last year. Additionally, the average property size grew by about half a room—approximately 10 square meters—from last year’s 65 square meters.
“The impact of the record-breaking interest at the beginning of the year has reached the Budapest property market faster than expected. Compared to 2023 levels, last year’s upswing raised square meter prices by 7% over a full year, and the average based on January-February transactions is already showing almost the same rate of increase,” said Matthew Francis, Deputy CEO at Duna House.
Meanwhile, according to Duna House transaction data, there are areas in the capital where the average square meter price is around two-thirds of the citywide figure. Currently, the southeastern border districts on the Pest side—Rákosmente, Pestszentlőrinc, Pestszentimre, and Soroksár—are considered the most affordable locations in Budapest, with average house prices below HUF 700,000 per square meter.
Districts XVII and XXIII can also offer more cost-effective alternatives not only for those looking to buy pre-owned properties but also for new-build seekers: first-quarter data this year indicates that new properties in Soroksár and Rákosmente are being sold for around HUF 1–1.1 million per square meter, while the citywide average is closer to HUF 1.5 million.
The portal has recorded a significant recovery in demand in the Budapest conurbation. In January, settlements in Pest County saw a 6% year-on-year increase in inquiries, rising to 9% in February. Among the most popular settlements, demand rose by 20% year-on-year in Dunakeszi, 37% in Budaörs, 49% in Budakeszi, and 56% in Göd. According to Duna House data, the real estate market in the metropolitan agglomeration began 2025 with increasing transaction numbers, persistently strong demand, and further price rises. Prices remain 28% lower than those in Budapest.
Compared to Budapest, prices per square meter are 28% lower for those who prefer a more spacious and natural living environment to the congestion of the city. It is therefore understandable that this year, in addition to homebuyers planning to start a family, investors may also turn their attention to the agglomeration.
Data from the property portal ingatlan.com confirms the trend highlighted by Duna House. The sharp rise in house prices in Budapest has led more and more buyers to rediscover the agglomeration zone, where the cost of a 60-square-meter Budapest apartment can now buy a 100-120-square-meter garden house.
