Hungary’s construction nightmare: New data reveals the real price of home ownership in Hungary!
For many, owning a home is one of life’s most important goals – but in Hungary, this dream is becoming increasingly elusive, even for those with stable financial backgrounds. The steep rise in prices in recent years, lengthening construction times, and stark regional disparities mean that building your own home is no longer simply a matter of determination and saving. Instead, it has become a complex challenge involving logistics, finances, and patience..
According to Pénzcentrum, the average construction cost of a new home rose to HUF 617,000 (EUR 1,535) per square metre in 2024 – a historic high. Although this figure represents a national average, it suggests that the marginal cost of building a new home has crept to a level that could deter even wealthier prospective homeowners.
Although the rate of increase (3.5%) was below the double-digit growth recorded in previous years, the steady rise continues to place a significant burden on those considering new builds. Between 2019 and 2023, the market saw annual price hikes of between 10% and 20%, with 2022 standing out for its 23.5% increase. The current slowdown in growth appears to indicate market fatigue, rather than a genuine recovery.
Market anomalies in some counties
Official statistics show that construction costs fell dramatically in some counties. In Borsod-Abaúj-Zemplén, for instance, the average price per condominium unit dropped by nearly 30%. This reverse trend is partly attributable to changes in local labour costs and partly to weakening demand. Interestingly, the cost of constructing detached houses remained more stable: in Budapest, prices increased by 8.7%, while in Komárom-Esztergom County, the average cost declined by nearly 9%.
In light of these figures, the link between local construction dynamics and pricing trends has become increasingly evident. In Csongrád-Csanád County, for example, the arrival of Chinese car manufacturer BYD has already had a noticeable impact on the real estate market. Meanwhile, in Szabolcs-Szatmár-Bereg County, the active presence of Ukrainian buyers has driven up demand.
For larger flats targeting higher-income buyers, the construction cost per square metre has reached around HUF 659,000 (EUR 1,640), while for smaller units of 80–100 square metres, it stands at HUF 598,000 (EUR 1,488). This demonstrates that investors aiming for a higher standard of living often choose more expensive materials and extras, further inflating final costs.
Longer construction times, fewer new homes
Construction times have also increased significantly. Data for 2024 shows that completing a residential building took an average of 778 days – up from 683 days in 2023 – representing a delay of nearly three months and marking the longest average construction time since 2016. Multi-storey, multi-family condominium blocks took the longest (937 days on average), while single-family homes took “only” 748 days to complete.
One major cause of these delays is the shortage of skilled labour, which is apparent even during minor renovation works. Increased demand is another contributing factor, leading to bottlenecks in the sector’s capacity.
In total, 13,295 homes were completed in Hungary in 2023 – the lowest number since 2016. According to the Central Statistical Office, these dwellings were built across 6,170 buildings, some of which housed multiple units. Most constructions consisted of ground-floor or single-storey buildings, with only 31 structures exceeding five storeys. The vast majority (82%) were built using brick masonry, and concrete tiles remained a common roofing material – contributing to a degree of cost uniformity. Despite technological innovations being available, these trends suggest that traditional methods remain the most popular.
Regional cost differences persist
Significant regional disparities in construction costs remain. For example, the average price per square metre of new detached houses in Nógrád County was HUF 538,000 (EUR 1,338), compared with HUF 759,000 (EUR 1,888) in Budapest – a difference of more than 40%, excluding land costs. This disparity is largely due to differences in labour expenses and technological standards.
For apartment buildings, the gap was even wider: the cheapest in Nógrád County cost HUF 424,000 (EUR 1,055) per square metre, while in Budapest the figure was HUF 661,000 (EUR 1,645). Other counties have also seen rapid increases in costs: in Fejér and Baranya, for example, unit costs rose by more than 20% over the past year, bringing construction prices in line with – or even exceeding – those in the capital.
Dávid Valkó, senior analyst at OTP Ingatlanpont, noted that the rise in construction costs is no longer primarily driven by material prices, but rather by increased labour costs. Despite slower price growth, overall expenses continue to rise due to ongoing wage increases for contractors. This trend not only inflates costs but also delays projects, as fewer professionals are available to handle growing workloads.
A cautionary outlook
In recent years, housing prices in Hungary have risen at a slower pace, yet still well above the rate of inflation. Meanwhile, construction activity has declined significantly, completion times have grown longer, and regional disparities have widened.
In sum, anyone considering building a home in Hungary today must be prepared not only to invest significantly but also to plan carefully and be exceptionally patient. The path to home ownership is no longer just a financial commitment – it is a logistical marathon
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