Hungarian housing market: Buyer demand reaches 2-year high
Buyer interest in the Hungarian housing market has surged, as government home-building subsidies and lower interest rates create favourable conditions for purchasers.
According to Pénzcentrum, in Budapest, 23 out of every 100 homes sold were purchased by first-time buyers, while in rural areas this figure rises to 26%. Experts from Duna House estimate that the average price for a first home is HUF 44 million (EUR 110,000) in the capital and HUF 34 million (EUR 85,000) in rural areas.
Government subsidies, falling mortgage rates, and an improving economic outlook have sparked a Hungarian housing market boom in 2024, with buyer demand reaching its highest level in two years. Duna House reports that 42% more properties have been sold in Hungary so far this year compared to the same period in 2023. The real estate market is currently driven by investors, families moving to larger homes, and first-time buyers.
Data from Duna House reveals that the proportion of first-time homebuyers in the Hungarian housing market has increased by 1% in Budapest and by 2% in rural areas compared to last year. This means that 23% of properties sold in Budapest, and 26% in rural areas, have been purchased by first-time buyers, according to Károly Benedikt, Head of PR and Analysis at Duna House.
Significant rise in first-time homebuyers in the Hungarian housing market
First-time buyers in Budapest are spending an average of HUF 44 million (EUR 110,000) on properties that offer 52 square metres of living space—5 square metres less than last year. In rural areas, they are paying approximately HUF 34 million (EUR 85,000) for much larger homes, averaging 84 square metres.
A third of first-time buyers in Budapest are aged between 20 and 30, while more than a quarter are between 30 and 40. The age distribution is similar in rural areas, where 31% of first-time buyers fall into each of these age brackets.
“First-time homebuyers benefit from programmes such as the 10% deposit option, CSOK Plusz subsidies, which include partial debt relief, and waived fees. These incentives, coupled with lower interest rates and an improving economy, are helping more people purchase their first home,” Benedikt explained.
The cost of a first home varies significantly across rural Hungary. In Eastern Hungary, properties are being sold for between HUF 18.3 million (EUR 46,000) and HUF 38.4 million (EUR 96,600). In Western Hungary, prices range from HUF 23.7 million (EUR 60,000) to HUF 31 million (EUR 78,000). In Pest County, near the capital, the average price stands at HUF 43.3 million (EUR 109,000), close to the average in Budapest.
According to Duna House sales data, 19.3% of homes sold last year were bought by first-time buyers in the Hungarian housing market. This year, in the first eight months, the share remains almost identical at 19.4%. However, a closer analysis reveals that from January to August 2023, only 11.2% of homes were purchased by first-time buyers. This year, the share has increased by over 8 percentage points, indicating a stronger presence of first-time buyers in the Hungarian housing market.
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1 Comment
Good reason why Hungary cannot accept migrants. No housing available.