Thinking of buying in Budapest? See why investors still rule the real estate market
On Tuesday, listed real estate broker Duna House said investors accounted for 43 per cent of home purchases in the capital in April.
Current real estate market in Budapest
According to the latest data from Duna House, almost half of all sales concluded in Budapest in April 2025 were for investment purposes – a trend that could give new impetus to the structure and pricing of the capital’s market.
Based on Duna House data, 43% of home buyers in the capital purchased real estate for investment purposes in April 2025. This proportion has risen steadily since January, reaching a record high of 45% in March. Meanwhile, the number of sales declined both nationally and in Budapest, indicating that the Budapest market remains attractive to capital investors despite the decline in demand.
Dominance of financially strong buyers
Investors spent an average of HUF 74.8 million on the properties they purchased, significantly exceeding the average expenditure of first-time buyers at HUF 66.4 million (EUR 164,000). At the same time, prices continued to rise in the capital, especially in the inner districts, where the average price per square meter for brick apartments reached and, in some parts, even exceeded HUF 1.3 million.
“While in April last year, the majority of properties sold on the Pest side fell into the HUF 600,000-800,000/m² price range, this year apartments priced between HUF 1.2 and 1.4 million/m² dominate the market,” said Péter Szegő, PR and analysis expert at Duna House, pointing out how the predominance of investment purchases is also transforming the composition of supply.
More financially conscious sellers
The motivational background of sellers also reflects the market transformation: in Budapest, 40% of those selling their properties are divesting themselves of previous investments. This ratio, combined with the decline in the number of sellers aged 60 and over, points to a more active market presence of younger, more financially conscious investors.
Hungary’s home prices climb 12.5pc in April
Home prices in Hungary rose 12.5pc year-on-year in April, listings site Ingatlan.com said on Tuesday. In the capital, home prices rose 19pc. In Budapest, resale home prices averaged HUF 1,270,000/sqm (EUR 2,900/sqm). In Debrecen, the country’s second-biggest city, the average price for resale homes was HUF 937,000/sqm (EUR 2,300/sqm). Prices averaged HUF 880,000/sqm (EUR 2170/sqm) in Szeged, HUF 844,000/sqm (EUR 2,080/sqm) in Győr and HUF 773,000/sqm (EUR 1,900/sqm) in Pécs.
Future prospects
The high proportion of investment transactions may strengthen the position of the premium segment, but at the same time pose new challenges for first-time home buyers, for whom the entry threshold may rise further.
The trend also highlights that the housing market not only fulfills a residential function, but also remains an important means of wealth preservation and income generation, especially in an economic environment characterized by high inflation and more volatile financial markets.
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