Sky-high property prices in Budapest last year, so what can we expect in 2026?

Budapest’s new-build housing market closed 2025 with record sales and historically high prices, according to the latest analysis by real estate brokerage Duna House. While demand remained strong throughout the year, experts now expect a more cautious and price-sensitive period ahead, particularly in the most expensive inner districts of the capital.

2025 was about growing property prices in Budapest, what will 2026 bring?

Last year, the average price of newly built flats in Budapest reached HUF 1.83 million per square metre, representing a year-on-year increase of 12.2 percent.

The most striking figure came from District VI (Terézváros), where average prices exceeded HUF 3 million per square metre for the first time ever, setting a new record. Other prestigious Buda districts, including Districts I, II and XII, followed with typical price levels between HUF 2 million and HUF 2.5 million per square metre.

Sales activity was equally remarkable. A total of 10,061 newly built flats were sold in Budapest in 2025, the highest annual figure of the past decade. Duna House attributes the sustained demand to two key factors: the continued presence of investors and the impact of the Home Start Programme (Otthon Start Program, OSP), which supported buyers through favourable conditions.

Several of the most successful residential projects benefited from brownfield redevelopment status, allowing buyers to reclaim 5 percent VAT, while large-scale developments aligned with the OSP also performed particularly well, reports 24.hu.

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Growth was steady, but Duna House expects a consolidation

Price increases were steady throughout the year, though the pace varied by area. In the final quarter, average prices rose by 3.3 percent in Buda, 3 percent in Outer Pest and 1.8 percent in Inner Pest. By the end of the year, however, developers had clearly become more cautious.

In the fourth quarter, prices remained unchanged for 62 percent of available flats, while only 22 percent saw increases and 16 percent experienced price reductions.

Looking ahead to 2026, Duna House expects demand to remain stable but more moderate. Growth in unit prices is likely to slow, especially in inner districts where current price levels have already pushed the limits of affordability for many buyers. At the same time, Outer Pest is expected to continue strengthening as a more accessible alternative.

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Analyst says this year could slow down the ramping up prices

Developers are also adjusting their timelines. An increasing number of projects are being rescheduled for completion in 2027–2028, and a significant share of currently available unsold flats is already listed with delivery dates in those years.

According to Péter Szegő, lead analyst at Duna House, the Budapest new-build market in 2025 was both strong and cautious. While premium locations still allowed room for price growth, he believes that 2026 will be defined more by stabilisation than by another price surge.