Surge in housing in Hungary beats EU trends

Housing in Hungary has experienced one of the most dramatic surges in the EU, with property prices more than tripling and rents more than doubling since 2010. As the market continues to heat up, fresh data and upcoming policy changes suggest that this upward trend is far from over.

Housing in Hungary skyrockets

As 444 reports, housing in Hungary has seen a dramatic rise over the past decade, with house prices surging by 234% and rents increasing by 114% since 2010, according to Eurostat. These figures place Hungary at the top of the EU for house price growth, while it also ranks among the leaders in rental increases. In contrast, the EU average over the same period shows a more modest 55.4% rise in house prices and a 26.7% increase in rents. This means that the growth in housing costs in Hungary is more than four times the EU average, highlighting a uniquely sharp upward trend in the country’s property market.

The latest data for the fourth quarter of 2024 shows that housing in Hungary continues to outpace much of Europe. While the EU as a whole saw a 4.9% annual increase in house prices and a 3.2% rise in rents, Hungary’s figures remain significantly higher. Other countries such as Estonia and Lithuania have also experienced strong growth, particularly in rental prices, but Hungary stands out for the sheer scale of its housing price surge. These trends underscore the growing challenges for affordability and access within the Hungarian housing market, while also drawing attention from investors and analysts watching regional real estate dynamics.

Further growth expected

According to Növekedés, looking ahead, several factors are expected to drive further growth in housing in Hungary throughout 2025. Changes to tax rules will allow voluntary pension savings to be used tax-free for buying or renovating homes, potentially injecting significant funds into the property market. In addition, the appeal of government bonds is expected to wane due to falling yields, prompting many households to redirect their savings toward real estate. As a result, housing market experts anticipate continued double-digit price growth, with forecasts ranging from 10% to as high as 20%.

Key hotspot?

These developments suggest that the momentum in housing in Hungary is unlikely to slow in the near future. The combination of supportive fiscal changes and shifting investment preferences could accelerate demand, further pushing up property values. With domestic interest remaining strong and external attention growing, Hungary’s housing market may remain a key hotspot within the EU, offering opportunities for investors, but also posing affordability challenges for local buyers.

Read also:

• Want to buy a beach and beachfront at Lake Balaton? Now you can
• Monaco real estate trends: what’s hot in the luxury market?
• Current house prices in Budapest: Fewer affordable districts remain

Featured image: depositphotos.com