Brutal price fall expected on Hungarian property market in next 2-3 years

Second-hand flats and houses may lose HUF millions (EUR thousands) of their value in the next 2-3 years. Will Hungary become a new Mecca for property investors again?

The last couple of years saw a brutal hike concerning real estate prices in Hungary. Currently, a couple with an average net income has no chance to buy a flat even in the long run because they cannot save that much money and interest rates are very high due to the high base interest rate introduced by the Hungarian National Bank in 2022 to protect the forint’s value.

According to Blikk, a Hungarian tabloid, in the next 2-3 years, even a 10-15% price decrease is possible on Hungary’s second-hand property market. Based on the latest data of the Hungarian Central Statistical Office (KSH), the price of second-hand flats decreased by 3% compared to H1 2023. László Balogh, a leading expert, said that property worth HUF 70 million lost HUF 1 million of its price in just months. He added that on an annual level, there is a stagnation in the market. Provided the trend continues, property prices could settle at a lower price level.

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Without government help, property prices will shrink in Hungary

He did not exclude a 10-15% price decrease in a 2-3 year long term. He said that trend could be baulked by a new, state-supported, preferential housing loan. For example, the CSOK+ scheme kicking off in 2024 may shake the market up. And with a rising demand, prices may continue to increase again.

In small settlements, we have to pay less for big family houses than last year. In Győr, Kecskemét, Debrecen and other municipalities, prices remain stagnant for now. In Budapest, the average sqm price is almost HUF 1 million. Based on the Duna House’s leading analyst and expert, more and more buyers can bargain with the owners because of the decreasing demand.

Károly Benedikt said bargains span from minus 4-6% to 8-10% in some cases, which is favourable for the buyers.