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.