Budapest’s real estate market set new record in October

Budapest’s real estate market witnessed a record number of homebuyers purchasing for investment purposes in October. The effects of the recent restrictions on short-term rentals can already be felt. Thus, there is a slight shift in the top preferred areas in Budapest. Rental prices seem to stabilise.

Budapest’s real estate market sees new record

As Telex reports, Budapest’s real estate market experienced robust growth in October, with Duna House estimating 10,738 property transactions—a 10% increase from the previous month and a significant 37% rise compared to the same period last year. This surge, driven by strong buying and selling activity, suggests an active period ahead for both the real estate and mortgage markets. Investment in Budapest has hit a new high, with 40% of buyers purchasing properties for investment purposes, spending an average of HUF 58.7 million (EUR 143,000) per transaction.

Photo: depositphotos.com

The top areas

Budapest’s real estate market has seen notable shifts in recent months, with districts on the Buda side, particularly Újbuda and District 2, attracting increased interest. However, District 13 is currently the top choice for investors, capturing 19.4% of buyer interest. The recent restrictions on short-term rentals, such as Airbnb, have further decreased demand in central areas like Erzsébetváros and Terézváros. This policy change has been advantageous for prospective residents but poses challenges for property sellers in these districts.

Current trends regarding the pricing

In terms of property prices, Budapest’s real estate market continues to climb. October data shows double-digit annual growth in the capital’s panel flats, where sellers remain firm on guide prices, allowing only 2-4% room for negotiation. Buyers paid an average of HUF 873,000 (EUR 2,130) per square metre for factory apartments in Buda, while similar units in Pest were slightly lower at HUF 773,000 (EUR 1,886).

Brick apartments saw even higher averages, exceeding HUF 1.2 million (EUR 2,928) per square metre in Buda, close to HUF 1.1 million (EUR 2,684) in Pest’s centre, and around HUF 779,000 (EUR 1,901) in outer Pest. In the countryside, first-time home buyers and investors were equally active, spending on average HUF 35.5 million (EUR 86,611) and HUF 30.9 million (EUR 75,388) respectively.

Photo: Alpár Kató – Daily News Hungary ©

Rental prices

Budapest’s real estate market is showing signs of stabilisation in rental prices, according to the latest KSH-ingatlan.com rent index for October. Despite the recent surge in rental demand, rising rent prices have slowed, with average rents in Budapest holding steady and even dropping slightly nationwide. Chief economist László Balogh suggests that tenants may be reaching the limits of affordability.

Rental supply has also increased, with the average rent in Budapest standing at HUF 250,000 (EUR 610) in early November, varying between HUF 160,000 (EUR 390) and HUF 340,000 (EUR 830) by neighbourhood. Among other cities, Debrecen has the highest rents outside Budapest at HUF 230,000 (EUR 561), followed by Győr at HUF 200,000 (EUR 488), while Miskolc offers more affordable options at roughly half the price of Debrecen.

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