Home prices have soared far beyond PM Orbán’s promises: even panel flats in Budapest are becoming unaffordable
Budapest is rapidly heading towards a future where living in a panel flat feels like a luxury. According to Otthon Centrum (OC), prices in every district have risen by double digits, with some seeing increases of up to 45%—ironically, this applies to the cheapest housing estates in Kőbánya and Pesterzsébet. Experts expect the property market to pick up again in January, although momentum is already slowing this autumn.
Panel flat prices skyrocket
RTL News reports fierce competition even for panel flats in Budapest, as prices have surged to unimaginable levels. A homeowner from Kőbánya revealed that their flat, bought for 2.5 million HUF in 1996, could now fetch around 60 million HUF.
The price hike did not only explode after the pandemic; the past year alone has seen sharp rises. Many investors channelled their state bond returns and capital into property early this year, further fuelled by the government’s 3% low-interest loan scheme. OC data show a staggering 45% price increase in some districts (such as the 10th and 20th), with an average rise of 38% citywide.
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Broken government promises
In June, Prime Minister Viktor Orbán promised that prices would not rise thanks to a square-metre price cap—but this measure has failed to deliver. Minister Gergely Gulyás had previously insisted that price increases would not exceed the assistance provided by the 3% loan, yet reality has proved otherwise.
According to Bankmonitor, even with the 3% loan, today’s buyers must borrow 4–5 million HUF more than those purchasing just a year ago. József Árgyelán notes that the average price for a panel flat in Budapest now stands at 1.1 million HUF per square metre.
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Fresh market uptick expected next year
Real estate experts anticipate another surge in market activity from January 2026—a seasonal trend driven by new builds expected to go on sale from February onwards. These properties will be available through the discounted loan scheme straight from the planning stage, MTI reported.
Demand, however, is falling nationwide: September saw 20% fewer property searches as the initial wave of interest from the Otthon Start scheme faded. Buyer activity in Budapest remains lower than in the countryside, likely due to high prices and many flats failing to meet the 3% loan criteria. Smaller towns, by contrast, continue to experience strong demand.
In October, nearly 36,000 flats were listed on the market—8% fewer than in September—yet this still marked a four-year monthly record for listings, according to ingatlan.com.
Check out more of our articles concerning the property market in Hungary.
Imagine that you saved enough for the down payment on a flat. You are ready to buy and then Fidesz brings in its’ 3% mortgage scheme for young home buyers. Prices subsequently go up and you can no longer afford to buy because your downpayment is no longer big enough. That is the situation that was explained to me about one family in Budapest.