Hungary’s property market set for 2025 boom – Expert tips on the best places to invest

Real estate experts discussed future trends concerning the Hungarian property market at the Portfolio Investment Day conference. They agreed that tremendous money could be transferred to the sector next year because one of the most popular Hungarian government security will expire and 20% of that money can be spent on buying property. That may mean people can look for good investment opportunities with more than HUF 1,300 billion (EUR 3.2 billion).

Billions of euros may flow into the Hungarian property market

The Premium Hungarian Government Security (PMÁP) is one of the most popular government securities with a value of more than HUF 6,500 billion (EUR 16 billion) containing residential savings. The government security will expire in 2025 and the new cycle’s interest rate will be lower, so experts believe that only a fraction of that money will remain in this form of investment.

According to Gábor Bánhalmi, a senior strategist of the K&H Fund Management, 40-50% of the money will remain in state bonds. Meanwhile, people are expected to buy shares and foreign currency for 20%, 10% will be spent on consumption, and 20% on buying property.

Dávid Valkó, a senior analyst of OTP Jelzálogbank, said property in Hungary was a profitable investment in the past 5-10 years. Furthermore, Hungarians gladly invest their money in real estate, and that trend is not expected to change in the short run.

Experts recommend buying property in Budapest

Mr Valkó added he would buy newly-built apartments in the rust zone of Budapest and the downtown districts of the capital. He said the number of purchases in the sector may rise in 2025 reaching even 150 thousand. That number would be ideal for the market, he added. That would bring an increase in property prices. He cleared that the yield after renting out an apartment is around 4% after paying the taxes, provided you do not have a loan.

Attila Szűcs, the owner of Ingatlanpáholy, said buying property was a risk-averse strategy because it is not dependable on global changes like wars. He would buy property in Budapest and the outer district (14, 13, 15, 17). He agrees that there will be an increase in the number of purchases. He believes that the number of transactions will reach 140 thousand. In 2026, despite the restrictions of the Airbnb sector, there will be an 8-10% rise in property prices. However, Budapest’s 6th district (Terézváros) will not be affected because they banned Airbnb.

Read also:

• Airbnb effect: Budapest apartment prices start dropping after Airbnb ban – read more HERE
• Hungary’s property market on track for 30% sales increase in 2024