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.