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Hungary tops EU property market with record-breaking price surge
Hungary has seen the fastest growth in residential property prices across the European Union over the past year, according to the latest data released by Eurostat. By the third quarter of 2025, Hungarian house prices were 21.1% higher than a year earlier, placing the country well ahead of all other EU member states.
Across the EU as a whole, house prices rose by an average of 5.5% year on year, while the euro area recorded a slightly lower increase of 5.1%. Out of the 27 EU countries, data was unavailable only for Greece. Finland was the sole member state where prices fell, with an annual decline of 3.1%. Behind Hungary, the strongest price growth was observed in Portugal, where property costs climbed by 17.7%, followed by Bulgaria at 15.4%, Telex reported based on Eurostat data.
Quarterly figures confirm strong momentum
Quarter-on-quarter figures also emphasise the strength of Hungary’s property market. Between the second and third quarters of 2025, housing prices in the country increased by 3.1%, nearly double the EU average of 1.6%. Only four EU member states posted higher quarterly growth during the same period.
At the EU level, house prices rose at the same 1.6% quarterly rate in both the euro area and the European Union overall, signalling continued but more moderate growth compared to Hungary’s performance.
Signs of a slowdown emerge in Budapest
However, recent domestic data suggests that the pace of price growth may already be easing in certain parts of the country, particularly in Budapest. According to figures published by Ingatlan.com, average house prices across Hungary rose by just 0.4% in December 2025, while prices in the capital actually fell by 0.7%. This followed a smaller decline of 0.1% in Budapest in November.
Balogh László, chief economic expert at Ingatlan.com, said the slowdown in the capital reflects the limits of buyers’ financial capacity. In his view, affordability in Budapest has “reached its ceiling”, meaning many potential buyers are no longer able or willing to absorb further price increases.
Government measures and regional differences
The government’s Otthon Start Programme has also contributed to easing price pressure in the capital, with its price cap of HUF 1.5 million (EUR 3,888) per square metre acting as a brake on further increases.
A similar cooling trend has been observed in Pest County, where price growth has also slowed noticeably. In contrast, no major reversal has yet occurred in most other regions of the country. In Central and Southern Transdanubia, recent months have even seen price increases accelerating beyond their earlier average pace.
EU-wide trends remain mixed
Across the European Union, the broader picture remains uneven. Compared with the previous quarter, house prices rose in 21 member states and fell in five. The largest quarterly declines were recorded in Luxembourg, Finland and Slovenia, while Latvia, Slovakia and Portugal experienced the strongest increases.
While Hungary’s property market is still one of the most dynamic in the EU, the emerging slowdown in Budapest suggests that affordability constraints may soon start to reshape national trends as well.