Lots of new homes will be built in Budapest reshaping the housing market

A long-absent supply glut is reshaping Budapest’s new-build housing market, with developers embarking on construction projects with growing confidence, OTP Mortgage Bank told MTI on Tuesday.

According to their summary, 9,100 new homes are expected to be handed over in Budapest this year, and 7,900 next year, while some residential properties are already under construction but not yet advertised. The upturn began last year, when 8,700 flats sold – the second-highest sales volume since 2017.

Budapest housing market to be reshaped

Projects currently on the market hold an equal number of unsold flats awaiting buyers, 43 per cent more than a year ago. They attributed the striking expansion of supply to three years of favourable market conditions, adding that the state is also placing strong emphasis on broadening the selection, the Hungarian News Agency wrote.

The statement noted that the average price per square metre for flats due for handover this year in Budapest just exceeds 1.7 million forints, potentially reaching 1.83 million for those in 2027. Prices vary widely by district, typically ranging from 1 to 4 million forints, though forecasting their trajectory is tricky given the uncertain impact of the swelling supply.

What is already clear, however, is that the pace of price rises could slow markedly, while announcements of fresh developments suggest that 2026 will shatter Budapest’s record for new flat availability, they added.

Check out other projections for the future:

• Top agent’s insight about what to expect concerning the house prices in Hungary in 2026
• Sky-high property prices in Budapest last year, so what can we expect in 2026?