Long-awaited twist in Budapest’s property market – could this new trend be here to stay?
After running hot for much of the year, the property market is finally cooling off. Demand is easing while supply grows, leading to a surprising reversal of trends—especially in Budapest’s property scene. As a result, many investors and sellers are now taking a wait-and-see approach.
Budapest property prices drop for the first time in years
According to MTI, ingatlan.com’s November housing price index shows a nationwide slowdown in price rises. Monthly growth has slowed sharply to just 0.5%, well down from September’s 2.8% and October’s 1.5%. In Budapest, prices fell very slightly for the first time since last year, sliding by 0.1%—effectively marking a flattening trend.
However, the year-on-year comparison paints a rather startling picture. Those who purchased a property in Budapest last November have seen its value soar by an average of 24.1% in just 12 months.
Prices in the surrounding Pest County have also surged significantly, driven by strong demand as many move to the suburbs to escape Budapest’s high prices. Here, annual price growth reached 18.8%. Intriguingly, the eastern regions of Hungary saw an even higher yearly increase of 19.4%, compared with 15.2% in the west.
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Further price moderation expected
László Balogh, lead economic expert at ingatlan.com, notes a major shift in recent weeks. Buyer activity has dipped both month-on-month and year-on-year, while supply has noticeably expanded. This cooling of demand has led to slower price growth and the slight price dip observed in Budapest.
Balogh points out that many are holding off because new residential developments are being announced left, right and centre—most recently behind the Campona shopping centre in Budapest’s 15th district. Interestingly, this development was approved jointly by the Fidesz and DK parties, despite the collapse of the ruling left-wing coalition locally.
Balogh warns that if prospective buyers increasingly favour new-build homes, sellers of older properties could be pressured into lowering their prices further. After the strong price surge earlier this year, a mild correction may be on the horizon.
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What does a Budapest flat cost now?
In November, ingatlan.com found that the median price per square metre for second-hand flats in Budapest was nearly 1.4 million Hungarian forints (EUR 3,650). The priciest district remains the 5th, with prices above 2 million forints (EUR 5,220) per square metre. The 1st and 12th districts follow, with median prices of 1.83 million and 1.78 million forints respectively. Meanwhile, buyers targeting the more affordable 17th, 18th, 20th and 23rd districts can expect median prices between 800,000 and 981,000 forints (EUR 2,087–2,559) per square metre.
Among Hungary’s county seats, Debrecen tops the list with median prices close to 997,000 forints per square metre as of early December. Szeged and Győr also feature prominently, with medians of 952,000 and 920,000 forints respectively.
Other mid-range locations include Kecskemét, Tatabánya, Szombathely and Nyíregyháza, where prices hover between 732,000 and 804,000 forints per square metre. Meanwhile, Békéscsaba, Salgótarján and Kaposvár offer the lowest prices, with medians ranging from 285,000 to 541,000 forints (EUR 743–1,411), according to ingatlan.com.
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