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.