Buy property in Budapest: is now the right time for investors?
Hungary’s housing market in May was marked by a deceleration in price growth and significant regional disparities, according to the latest housing price index published by real estate portal Ingatlan.com, the company told MTI on Tuesday.
Property in Budapest
On average nationwide, real estate prices in May were 12.1% higher than a year earlier, compared to an annual growth rate of 12.5% in April. Monthly price growth slowed to 0.8% in May from 2% in April.
In Budapest, annual price growth stood at 19% in May, slightly down from 19.2% in April. Meanwhile, the monthly price increase slowed to 1.2% in May, following 2% in April and 4.5% in February.
According to László Balogh, lead economic expert at Ingatlan.com, housing demand in Budapest stagnated from April to May, so the deceleration in price growth was to be expected. However, high property prices in the capital continue to push buyers out into the suburbs.
Fresh data show that the price of residential properties in towns and villages across Pest County rose by 1.6% month-over-month in May—outpacing the rate of price growth in Budapest.
Nationally, the modest increase in demand in May led to restrained monthly price growth compared to April, but significant differences persist between regions.
The expert noted that buyers may have better bargaining power during the summer, as activity traditionally slows on the real estate market during this season. This seasonal effect, along with the currently high price levels in Budapest, indicates that no major changes are expected on the capital’s sales market in the near term.
Outside Budapest
Outside Budapest, local housing markets in areas with lower property prices may become more active.
He added that the summer period typically sees a boost in the rental market, which follows a fundamentally different dynamic from the property sales segment.
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Young people are being pushed out of the real estate market in Hungary
The presence of younger age groups in the Budapest real estate market has declined, while the proportion of moves to smaller properties and purchases for the purpose of generational separation has also fallen, according to a recent analysis by Duna House. Although these effects are more pronounced in Budapest, similar trends are emerging in rural areas. As a result, activity in the more dynamic segments of the domestic real estate market, which young people previously drove, has slowed down.
The 2025 data for the Budapest real estate market indicate a spectacular turnaround in the activity of younger buyers, a phenomenon that could reshape the structure of demand and housing trends in the longer term.
The decline in the 20-30 age group is particularly striking: while in 2024 this age group still accounted for 17% of all property buyers in Budapest, by 2025 this proportion had almost halved to 9%.
“The presence of younger buyers in the real estate market is not just a statistical figure, but also an important indicator of the state of the market. Their decline not only signals the absence of an age group, but may also point to an unfortunate social phenomenon alongside the slowdown in the real estate market,” says Péter Szegő, PR and analysis expert at Duna House. “Rising property prices and higher interest rates, combined with inflation, make it difficult to raise the necessary funds and take out loans. This makes it increasingly difficult to find independent housing,” says the analyst.
This change is also having a dramatic impact on demand for smaller homes: in 2024, 10% of buyers decided to move to smaller properties, but by 2025, this figure had fallen to just 5%. Studio apartments and other smaller, more affordable properties are particularly popular among young first-time buyers. If this age group disappears from the market, demand for these types of properties is likely to decline. This phenomenon may also indicate that these properties are becoming increasingly unaffordable for first-time buyers.
Fewer young Hungarians leaving home
An interesting parallel can also be observed in the separation of generations. In 2024, 8% of all transactions were related to this type of life change (typically young adults leaving their parents’ home), while this proportion fell to 3% in 2025.
Economic reasons may also be at play here: buying a home or financing a rental has become more difficult for many people. “This trend is also closely linked to the decline in the number of young buyers. If young people do not enter the market and do not buy their own homes, the generational divide will also be delayed,” said Péter Szegő.
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