Hungary’s housing market sees revival with rising prices and mortgage demand, central bank reports

Demand in the Hungarian housing market is “lively” and could increase further in 2025, although home purchases for investment will dominate, Sándor Winkler, a department head at the National Bank of Hungary (NBH), said presenting the central bank’s latest report on the market on Wednesday.

Winkler said the market would be supported by favourable macroeconomic fundamentals, such as high employment, double-digit wage growth and higher real wages, contributing to an improvement in consumer confidence. Delayed purchases, following very low transaction numbers in 2023, could also drive up demand, he added.

He noted that home sales had climbed 16pc year-on-year in the third quarter, with the number in the capital jumping 31pc. Housing prices are estimated to have risen 13pc nationwide and close to 15pc in Budapest in the third quarter from the same period a year earlier, he added.