Hungary’s Housing Market Surges Ahead of EU Competition
The housing market in Hungary has been on a steep upward trajectory, with property prices more than tripling and rents more than doubling since 2010. This surge in housing costs is far exceeding the average growth seen in the rest of the EU, making Hungary a standout in terms of real estate growth.
Recent data from the fourth quarter of 2024 shows that Hungary continues to outpace other European countries in terms of housing price and rent increases. While countries like Estonia and Lithuania have also seen significant growth, Hungary stands out for the scale of its housing market surge. This trend highlights the challenges of affordability and access within the Hungarian housing sector, while also attracting attention from investors and analysts.
Looking ahead, experts anticipate further growth in Hungary’s housing market in 2025. Changes to tax rules allowing tax-free use of voluntary pension savings for home purchases or renovations are expected to inject more funds into the property market. Additionally, the decreasing appeal of government bonds may lead households to shift their savings towards real estate, driving up prices even further. Forecasts suggest continued double-digit price growth, with estimates ranging from 10% to 20%.
These ongoing developments indicate that the momentum in Hungary’s housing market is unlikely to slow down any time soon. With fiscal changes and evolving investment preferences fueling demand, property values are expected to continue rising. Hungary’s housing market may well emerge as a key hotspot within the EU, presenting opportunities for investors while posing affordability challenges for local buyers. Stay tuned for more updates on this dynamic real estate market in Hungary.
