Rent prices slow in Hungary as property market is being reshaped by home-buyer scheme

Hungary’s long-running trend of rapidly rising rent prices appears to have eased, with fresh data and government statements suggesting a clear cooling in the rental market. Officials and analysts alike point to the impact of the state-backed Home Start Programme (Otthon Start) home-purchase scheme, which offers fixed-rate loans at 3% interest and has encouraged many tenants to buy instead of rent.

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According to Panyi Miklós, a state secretary at the Prime Minister’s Office, the programme has fundamentally changed market dynamics since its launch last September. He said the pace of rent increases has slowed significantly, while wages have continued to rise faster.

Government figures show that average net salaries increased by about 10% over the past year, while rent prices rose by roughly 5% nationwide and in Budapest, writes VG.hu. Since the scheme’s introduction, rents have climbed only marginally – by 0.4% across Hungary and 0.5% in the capital – marking what officials describe as a multi-year low in growth.

Panyi argues that the reason is straightforward: tens of thousands of tenants have left the rental market after becoming homeowners through subsidised loans, reducing demand and easing rent price pressures. More than 35,000 first-time buyers have reportedly joined the programme so far, with thousands more entering each month.

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Market data confirms the stoppage

Separate market data also confirm the slowdown. The latest rent index published by KSH and property portal ingatlan.com shows that rent prices rose by 1.3% month-on-month in January both nationwide and in Budapest. Year-on-year growth stood at 5% nationally and 5.1% in the capital, down from stronger increases recorded late last year and far below the 9% annual growth seen in early 2025.

Supply and demand indicators also reflect a cooling market. There are currently about 16,800 rental properties available nationwide, a 6% decline from a year earlier, while demand between early January and mid-February fell by roughly 18% compared with the same period in 2025. Analysts recorded around 135,000 phone enquiries during the first seven weeks of the year, noticeably fewer than in previous years.

Market figures show that the median rent in Budapest stood at about HUF 260,000 (EUR 660) in mid-February. Among districts with the largest supply, typical monthly rents ranged from roughly HUF 250,000 in central inner districts to nearly HUF 290,000 in popular areas such as District VI. The most expensive locations remain District V and District II, where median rents exceed HUF 360,000.

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The government says people could save even more money

The government estimates that slower growth of rent prices could leave tens of billions of forints in tenants’ pockets in 2026, potentially allowing many to save for deposits on future property purchases. Officials also highlight broader economic effects, noting that most homes bought through the programme are family houses larger than 50 square metres, supporting activity in local construction sectors.

Panyi described Otthon Start as Hungary’s strongest housing initiative since the political transition of 1989–90, adding that more than 25,000 loans have already been issued, with thousands more applications under review. If current trends continue, he said, the gap between wage growth and rent prices increases could widen further in the coming years.