Hungarian housing market: Buyer demand reaches 2-year high

Buyer interest in the Hungarian housing market has surged, as government home-building subsidies and lower interest rates create favourable conditions for purchasers.

According to Pénzcentrum, in Budapest, 23 out of every 100 homes sold were purchased by first-time buyers, while in rural areas this figure rises to 26%. Experts from Duna House estimate that the average price for a first home is HUF 44 million (EUR 110,000) in the capital and HUF 34 million (EUR 85,000) in rural areas.

Government subsidies, falling mortgage rates, and an improving economic outlook have sparked a Hungarian housing market boom in 2024, with buyer demand reaching its highest level in two years. Duna House reports that 42% more properties have been sold in Hungary so far this year compared to the same period in 2023. The real estate market is currently driven by investors, families moving to larger homes, and first-time buyers.

Data from Duna House reveals that the proportion of first-time homebuyers in the Hungarian housing market has increased by 1% in Budapest and by 2% in rural areas compared to last year. This means that 23% of properties sold in Budapest, and 26% in rural areas, have been purchased by first-time buyers, according to Károly Benedikt, Head of PR and Analysis at Duna House.

Significant rise in first-time homebuyers in the Hungarian housing market

First-time buyers in Budapest are spending an average of HUF 44 million (EUR 110,000) on properties that offer 52 square metres of living space—5 square metres less than last year. In rural areas, they are paying approximately HUF 34 million (EUR 85,000) for much larger homes, averaging 84 square metres.