The supply of new-build homes for sale in Hungary has reached a five-year high, with buyers currently able to choose from around 10,700 advertised flats and houses across the country, according to fresh data from property website ingatlan.com.
At the same time, price growth is slowing in the cheaper segment of the new-build market. The cheapest 10% of newly built flats nationwide can now be bought for up to HUF 59 million, just HUF 1 million more than a year ago.
New-build prices vary sharply across Hungary
The cheapest 10% of new-build properties cost up to HUF 71 million in Budapest, HUF 48 million in county capitals and other major cities, and HUF 41 million in smaller towns and villages.
There are significant differences between individual cities. Among new-build flats, Zalaegerszeg currently has the lowest prices, with the cheapest 10% of the market available for less than HUF 34 million. The equivalent threshold is HUF 46 million in Győr, while it stands at HUF 47 million in both Veszprém and Szombathely.
For new-build houses, Nyíregyháza has the lowest threshold among the cities highlighted by ingatlan.com, at HUF 69 million. The figure is HUF 77 million in Kecskemét and HUF 87 million in Székesfehérvár.
Within Budapest, the lowest entry price is currently found in District XIX, where the cheapest 10% of new-build properties are priced from HUF 50 million. The threshold rises to HUF 62 million in Districts X and XVIII and HUF 64 million in District VIII.
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Affordability becoming increasingly important
László Balogh, chief economic expert at ingatlan.com, said affordability is becoming an increasingly important factor in the competitiveness of new-build properties. While new homes have continued to become more expensive compared with last year, the slower increase in the cheaper segment could give buyers more room to choose from the growing supply.
Balogh also said the future of Hungary’s preferential 5% VAT rate on new homes is becoming an increasingly important issue for both buyers and developers. The reduced rate is currently due to expire at the end of the year.
According to the expert, raising the rate to the standard 27% VAT would not appear realistic at current property prices. He therefore expects the preferential VAT rate for buyers of new-build residential properties could remain in place after 2026, potentially continuing into 2027. This is an expert expectation rather than a confirmed government decision.
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More choice for buyers
The 10,700 advertised new-build homes represent the highest level of supply seen in the past five years, according to ingatlan.com. The combination of expanding supply and slower price growth in the cheaper segment could make affordability an increasingly important factor in the new-build market, particularly as buyers compare prices across Budapest, major cities and smaller settlements.
