Turning point in Hungary’s property market: prices hit the ceiling? Expert predictions for 2026

Hungary’s homebuyers have reached the limit of what they can afford, says the leading economic analyst at ingatlan.com. December’s long-overdue – albeit tiny – price drop sends a crystal-clear signal to the property market.

New horizons concerning the Hungarian property market

The 0.1% monthly price dip in December is “a stark warning to the market,” Balogh László, ingatlan.com’s chief economic analyst, told the Hungarian News Agency. In his view, Hungarian buyers have “hit the upper limit of their purchasing power.”

That’s why he doubts we’ll see a repeat of last year’s rapid price surges – the market has already priced in all known incentives. Instead, the first half of 2026 should bring expanding supply and rising sales volumes, not drastic increases. “We expect the housing market closed 2025 with as many as 160,000 transactions,” the expert noted in ingatlan.com’s statement. “Barring any unexpected twists, buyers and sellers entering the market this year can anticipate at least 155,000 to 160,000 deals.”

• Hundreds of luxury flats poised for former Budapest presidential residence site

Boosters to rev up the property market

From 1 January, three targeted measures kicked in to supercharge housing transactions (EUR 1 = HUF 385):

• Public sector workers can now claim a tax-free HUF 1 million housing grant per person, usable as a deposit or to cover mortgage payments. The scheme casts a wide net – even mayors qualify – effectively offering up to HUF 83,000 monthly debt relief for a year.
• Favourable 3% Otthon Start loans now extend to rural homes and gated gardens, which previously could only be bought for cash.
• Legal tweaks mean off-plan purchases of flats in apartment blocks are possible from this year. Just in recent months, developers announced thousands of new flats in residential parks across Budapest and major provincial cities.

Why Hungarian property prices soared over the past decade

The latest episode of Pénzcentrum’s Chart podcast dives into Hungary’s property boom. Data featured there (which we’ve covered before) shows prices jumped 200% between 2013 and 2023 – a staggering rise even by EU standards, outpacing Germany and France.

• The biggest changes in 2026 affecting everyday life in Hungary

Experts pin the frenzy on cheap money flooding into property from Hungary’s low-interest era, subsidised loans, surging investor buys, skyrocketing construction costs, and a chronic shortage of new builds. With new and second-hand homes pricing out the masses, hordes are forced into rentals – fuelling even higher rents. Budapest has curbed short-term lets, with District VI banning them outright, yet housing costs still devour 30-40% of household incomes – alarmingly high, hitting young professionals and fledglings leaving the nest hardest.

Featured image: depositphotos.com

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