The rapid rise in Budapest property prices appears to be losing steam. Annual house price growth in the capital has slowed to just 6.7%, down from 21% a year ago, while prices edged down slightly in August compared with July. Experts say the trend could make the market more favourable for buyers.

Budapest property boom loses momentum

Hungary’s housing market is showing increasingly clear signs of a slowdown, with Budapest experiencing the sharpest change. According to fresh analysis by property website ingatlan.com, annual house price growth in the capital fell to 6.7% in August, less than one-third of the 21% annual growth recorded a year earlier.

The latest monthly figures are even more striking. While property prices across Hungary rose by 0.6% between July and August, prices in Budapest fell by 0.1%. The change does not mean that Budapest homes are suddenly becoming significantly cheaper. Rather, it suggests that the rapid price increases seen over the past year have largely run their course.

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‘Sawtooth’ stagnation on the housing market

According to László Balogh, economic expert at ingatlan.com, the Hungarian housing market has entered a period of what he describes as a kind of “sawtooth stagnation”. Prices rise slightly one month, only to partially correct the following month. As a result, the overall price level is barely changing from month to month.

“The most important consequence is that annual house price growth is continuously slowing, which buyers and sellers are already beginning to feel,” Balogh said.

For buyers, this could represent a significant change after a period in which rapidly rising prices created pressure to make decisions quickly.

With prices now showing little month-to-month movement, prospective buyers may have more time to compare properties, negotiate and consider their options rather than feeling compelled to rush before prices rise further.

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Budapest still remains extremely expensive

Despite the slowdown, Budapest property prices remain high by Hungarian standards. At the beginning of September, the median price per square metre for second-hand flats and houses in the capital stood at around HUF 1.41 million, virtually unchanged from August.

There are also enormous differences between districts. The most expensive parts of Budapest remain Districts I, II, XII and V, where median prices range from approximately HUF 1.77 million to HUF 2.03 million per square metre.

At the other end of the scale, Soroksár remains the capital’s most affordable district, with a median price of around HUF 949,000 per square metre. This means that even with the slowdown, buying a home in many parts of Budapest remains a major financial commitment.

Northern and eastern Hungary still seeing double-digit growth

The slowdown is not affecting every part of the country equally. In fact, some regions are still experiencing considerably stronger annual price growth than the national average. Property prices in the Northern Great Plain rose by 15.3% year-on-year, while Northern Hungary recorded a 15.2% increase.

The pattern suggests that areas where property prices started from relatively lower levels are still catching up with more expensive parts of the country. Among county capitals, Debrecen remains the most expensive, with a median price of HUF 1.04 million per square metre for second-hand residential properties.

At the other end of the scale, Salgótarján remains the cheapest county capital, with a median price of just HUF 309,000 per square metre.

Buyers could finally get some breathing room

The slowdown could gradually improve housing affordability, according to Balogh. Two factors could work in buyers’ favour: rising incomes and a continued moderation in property price growth. After the sharp increases seen in recent years, even a period of relatively stable prices could make it easier for household incomes to catch up.

The current, more subdued pace of the housing market could also continue into 2027, Balogh believes. After around 150,000 property transactions last year, he expects approximately 130,000–140,000 transactions both this year and in 2027.

For prospective buyers, that points towards a very different housing market from the one seen during the recent price surge. Instead of racing against rapidly rising prices, buyers may increasingly find themselves in a position to take their time, and potentially negotiate better deals.