Budapest flats see sharpest rise in price: Is the housing market being reshaped?

Budapest’s second-hand housing market underwent a significant transformation over the past year, with panel flats recording the steepest price increases among all property types, according to new figures published by real estate brokerage Otthon Centrum.

Huge rise in panel flats’ price in Budapest

The data reveal a market increasingly driven by affordability and state-backed lending schemes, while demand for detached houses has remained comparatively subdued.

Otthon Centrum reported that panel flats built using industrial housing technology increased in value by an average of around 35–36 per cent year-on-year, making them the fastest-growing segment in the capital. By comparison, the average price of second-hand brick-built flats also rose, while price growth for used houses lagged well behind.

According to Gábor Soóki-Tóth, Head of Analysis at Otthon Centrum, the average price per square metre in Budapest last year reached HUF 1.38 million for brick-built flats, HUF 1.12 million for panel flats, and HUF 797,000 for used houses.

All three categories became more expensive in 2025 compared with the previous year, but the pace of increase was particularly strong in the flat market.

Why has this happened?

The acceleration in prices was largely attributed to government-guaranteed preferential mortgage schemes, which boosted buyer activity. These incentives significantly increased demand for lower-priced flats, especially panel properties, while interest in used houses weakened, particularly on the Buda side of the capital.

Brick-built flats in Budapest showed substantial price differences between districts. Average prices ranged from HUF 800,000 to HUF 1.8 million per square metre. District I remained the most expensive at HUF 1.84 million, followed by District V at HUF 1.74 million and District XIII at HUF 1.7 million.