The Unstoppable Rise of Real Estate Prices
Last year saw a significant increase in housing prices across Hungary, with the national average rising by 7.8 percent and Budapest experiencing an even higher increase of 11.8 percent, according to the December housing price index of Ingatlan.com.
The market recorded a 0.8 percent increase in residential property prices for sale in December compared to November, with an overall year-on-year increase of 7.8 percent. In Budapest, prices rose by 2.4 percent month-on-month in December and by 11.8 percent compared to the previous year.
The recovery in the national housing market is evident in the substantial annual increase of nearly eight percent, which is almost three times the increase seen in 2023.
Outside of Budapest, areas such as Debrecen and Szeged have seen significant price hikes in residential properties for sale, attributed partially to ongoing investments. Companies like BYD, CATL, and BMW are establishing factories in these regions, contributing to the growth in the property market.
In Budapest, the average price per square meter stands at 1.16 million forints, with second-hand properties averaging at 1.12 million forints and new properties at 1.4 million forints. According to Ingatlan.com’s chief economist, László Balogh, the expected increase in demand from investors may slow down the pace of price increases in the short term.
The real estate market in Hungary’s countryside also shows variations in housing prices, with cities like Debrecen, Győr, Veszprém, Szeged, and Székesfehérvár leading in second-hand property prices, while Salgótarján stands at the lower end. For new housing, Szeged is the most expensive, while cities like Szekszárd, Miskolc, and Békéscsaba offer more affordable options.
Looking ahead, OTP Real Estate Point forecasts continued momentum in the real estate market in 2025, with a potential 15-20 percent increase in transactions and over a 10 percent increase in prices. The analysts anticipate a rise in new buyers entering the market, further driving up prices and encouraging more properties to be listed.
Factors such as state subsidies, loan schemes, and maturing government bonds may stimulate supply and demand in the real estate market this year. Additionally, restrictions on the short-term rental market could impact rental prices.
Overall, the Hungarian real estate market is poised for further growth and activity in 2025, with various factors influencing both demand and supply dynamics.
