real estate

Hungarian real estate market on the move: latest insights

Hungarian real estate market Budapest Hungary

According to Duna House, the real estate market started the year on a brisk note and is expected to remain buoyant in the coming months.

The Hungarian real estate market performed well in October

Home sales in Hungary climbed 37 percent year-on-year to 10,738 in October, according to a monthly estimate by listed real estate broker Duna House.

Duna House estimated that mortgage outlays reached HUF 117bn (EUR 290) in October, up 128 percent from the same month a year earlier.

According to Duna House’s totals, the turnaround could have started at the end of the summer, as the number of transactions in August already exceeded last year’s level, and in September, the number of transactions exceeded the number before last year.

They added that in October, the stock of mortgage loans for housing increased by some 117 billion forints, more than double last year.

The market’s recovery is also indicated by the fact that month-on-month growth is also visible.

For October, transactions increased by 10 percent compared to the previous month, while mortgage loans increased by 3 percent.

Experts at Duna House believe that supply and demand are strong, so the momentum in residential property sales could continue until the end of the year.

The wave of price rises in Budapest could swell in the middle of next year

The capital city saw the most significant pick-up in house-buying in October.

This October brought a recovery in the housing market on both the supply and demand sides that have not been seen for years, which is not usually the case in the autumn, Ingatlan.com said on Monday. According to the specialist portal, these changes can be seen as a prelude to the recovery expected next year.

According to their aggregate, in the tenth month, more than 320,000 people made telephone inquiries about residential properties for sale, an increase of 31 percent year-on-year and 13 percent month-on-month.

In Budapest, interest in residential properties increased by a remarkable 45 percent year-on-year. Across neighbourhoods, demand in October was at least 60 percent higher than a year earlier in districts IV, VIII, X, XIII, and XXIII, suggesting that buyers in the capital who would buy for their own use were the most active.

The October, upturn in demand varies considerably by type of municipality. In the duchies and county seats, interest in apartments and houses for sale increased by 13 percent year-on-year, in the cities by 30 percent, but also in the municipalities by 19 percent. For municipalities, the 21 percent increase in demand was above average in rural municipalities with housing subsidies, while the 17 percent increase was below average in non-rural municipalities with housing subsidies. Csongrád-Csanád stands out in this respect. Residential properties in village voucher municipalities attracted 70 percent more interest, while their non-village voucher counterparts saw a 25 percent increase compared to October last year.

In terms of counties, Pest and Tolna saw the biggest upturn in demand, up 41 and 31 percent, respectively, compared to October last year, but most counties saw demand increase by 10-29 percent. Only the counties of Borsod-Abaúj-Zemplén, Bács-Kiskun and Veszprém saw demand growth below 10 percent.

Meanwhile, the supply side of the housing market also expanded significantly. In October, more than 31.5 thousand residential properties were advertised for sale by owners and real estate agents, up 2.4 percent year-on-year. The extent of the increase in supply is better illustrated by the fact that owners placed more than 70 thousand residential property advertisements in the first ten months of the year. The last time a similarly strong sales performance was recorded was in 2020.

According to László Balogh, chief economist at ingatlan.com, the increase in sales is that owners expect a buoyant market, where they have a better chance of selling their property. Some sellers would like to enter the market as buyers, but most need to sell their homes to do so, which is why they are advertising. Both phenomena point towards a housing market recovery that could pick up in 2025, according to the expert at ingatlan.com. In fact, by next year, the housing market could be injected with EUR 1,000 billion, partly from inflation-linked government bonds, partly from voluntary pension savings, and partly from state subsidies for the population.

Zoltán Gadanecz, founder-owner of GDN Real Estate, expects the property market to become more expensive. In a statement on Monday, he pointed out that a pick-up in demand for credit precedes price rises. The data from the Central Statistical Office (KSH) shows a slight price increase. Still, Gadanecz says that this is not a rise but a normalisation: the real estate market is now returning to the level of the beginning of 2022 if we look at the turnover based on the KSH data.

On the other hand, GDN Real Estate Network’s lending partner, GV Hitelközpont, reports an increase in the number of home loan applicants. This shows that demand will start to pick up, and a pick-up in demand will move the market, so those waiting will act, says Gadanecz. The expert believes that the rebound will not stop at 2022 levels but that next year, from mid-2025 onwards, he calculates, a real upturn will be seen if current trends continue.

Despite the housing shortage, there is a sharp drop in housing construction in Budapest

flat budapest

The number of home building permits issued in Hungary edged down 2.3pc year-on-year to 14,551 in Q1-Q3, data released by the Central Statistics Office (KSH) on Tuesday show.

The number of permits issued for homes in the capital plunged 33.5pc to 3,391 while the number issued for homes in county seats and cities with populations over 50,000 rose 7.1pc to 3,099. According to KSH, the number issued in smaller cities climbed 14.5pc to 4,339. In the country’s smallest settlements, the number of home building permits issued increased 19.6pc to 3,722.

The number of home completions fell 19.4pc to 8,709. Home completions in the capital dropped 14.6pc to 2,761. The number declined 14.7pc to 1,696 in county seats and cities with populations over 50,000 and was down 29.6pc at 2,223 in smaller cities. In Hungary’s smallest settlements, the number decreased 16.4pc to 2,029.

Compared to the same period in 2023, the number of housing construction permits issued decreased in the Southern Great Plain (-14%) and in Central Transdanubia (-12%), outside Budapest. The largest increases were recorded in Southern Transdanubia (52%) and Northern Great Plain (51%). In these two regions, the role of housing developments related to investments in Paks and Debrecen is dominant.

Detached homes accounted for 53pc of completions. Homes in multi-storey buildings with multiple dwellings made up 42pc of the total and homes in residential parks 2pc.

The average new home size was 99sqm.

The share of homes built by businesses stood at 58pc.

The data show 1,063 homes were demolished or condemned in H1.

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Surprising new trends that will revive the Hungarian housing market in 2025

Budapest Housing

The Hungarian housing market is finally on track for a strong comeback next year after a couple of weak years. Key drivers include real wage growth, a lower base rate from the central bank and improving credit market conditions. Add to this some pre-election government measures and the stage seems set for a rebound.

The government has been rolling out various initiatives aimed at different parts of the housing market, but there is a catch: many of these focus on boosting demand rather than expanding supply. According to G7, there has been a lot of focus on the extension of the 5% tax on new buildings and the overhaul of the rental rules. Meanwhile, newer measures, like the Airbnb restrictions and youth-focused housing programs, are still lacking in detail.

Budapest Housing
Source: Pixabay

Rent control and housing benefits

The rental market, which usually plays second fiddle to homeownership policies, is now getting more attention. One pivotal move could be extending housing cafeteria benefits to include rent payments—something that could significantly shift renter support. Plus, discussions between the government and banks about capping housing loan interest rates are crucial, which will likely shape lending practices and impact housing demand.

With budget pressures looming large, the government seems keen to find low-cost solutions. Options such as the use of SZÉP cards and voluntary pension savings for housing fit the bill. On the other hand, any large-scale, ambitious improvements are likely to depend on the state of the public finances, which will influence when (and if) they’re announced.

Housing affordability & market trends

For the first time, affordable housing has become a talking point in government communications, which seems to be a major shift. Given the fluctuating house prices and stagnating real wages of recent decades, this acknowledgement feels long overdue. Statements from officials like Gergely Gulyás and Márton Nagy underline a real housing crisis, particularly in the capital and other big cities.

Post-pandemic, the housing market saw a dip, with sales picking up in 2023 but still trailing behind 2019 levels. House price indices are reflecting this pattern too: after a drop in 2022, prices crept back up in 2023 but are still hovering around the 2020-2021 real price levels. Rents are following a similar trajectory.

forint currency economy money
Photo: depositphotos.com

Future outlook

Looking ahead, price trends may hinge on how much of the income from government bonds trickle into the real estate market. Even a partial inflow could spark notable price jumps, especially in major cities and for new builds. Forecasts are calling for potential price increases of 10-20% next year, buoyed by more active investors and continued support from home-buying subsidies.

All signs point to a housing market that’s gearing up for a major shift, fueled by a mix of economic recovery, targeted government measures, and evolving market conditions. While affordability remains a challenge and budget constraints may limit ambitious policies, the next year is set to bring new opportunities, especially for those keeping a close eye on investment trends and policy changes. If the expected wave of investor interest and supportive measures gain traction, the market could see a strong rebound, with rising prices in key urban areas leading the charge.

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Construction sector seeks financial relief and expanded programs to bolster home building in Hungary

New homes in Hungary construction

Government schemes supporting home constructions and renovations strengthen the public’s confidence and the persistence of product manufacturers and contractors, construction industry association ÉVOSZ said on Thursday.

In order to lift home construction from its current low point, in addition to government programmes, market-based financing must settle down, which means interest rate of 5pc or lower, ÉVOSZ head László Koji was quoted in the statement.

Koji said currently home constructions in Hungary are not primarily limited by regulatory issues or lack of capacity, but by the lack of funds.

Domestically produced construction products and contractor capacity are available for the construction of 25,000 new homes, but according to ÉVOSZ’s expectations, only around 16,000 units are expected to be put into use this year, he added.

ÉVOSZ is urging the launch of reformed home renovation schemes as soon as possible and extending eligibility criteria to residential properties built before 2007. It also called for the re-launch the Green Home Construction Programme of the National Bank of Hungary to support the financing of newly built homes.

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Featured image: depositphotos.com

Renting in Hungary: These are the most important things you should know as a foreigner

Spontaneous euroisation Budapest rent prices property market prices exceeded property in hungary renting in Hungary rental

Embarking on the journey of renting in Hungary offers an exciting chance to experience a vibrant culture, but it also brings unique challenges for newcomers. From navigating local rental norms to spotting potential scams, understanding the essentials of Hungary’s rental market is key to a smooth transition. Here’s a comprehensive guide to help you confidently secure the right home, avoid common pitfalls, and settle in with ease.

Rental agreement

Quite self-explanatory, but having a rental agreement is a must when renting in Hungary, as it protects both parties in various ways. Always ensure you sign a written rental agreement, as verbal agreements are not legally binding in Hungary. The contract should clearly outline the terms of the lease, including duration, rent amount, and responsibilities of both parties. Having a formal agreement protects your rights as a tenant.

real estate
Source: Pixabay

Deposit and rent

When renting an apartment in Hungary, it’s standard to pay a deposit ranging from one to three months’ rent, along with the first month’s rent upfront. This deposit acts as security for potential damages or unpaid rent. To avoid disputes over the deposit when you move out, thoroughly document the apartment’s condition upon move-in, ideally with photos or videos. This practice is especially important for anyone renting in Hungary to ensure a smooth reclaiming process.

Utility costs

Rental prices in Hungary usually do not include utility costs, such as electricity, gas, water, and internet. It’s essential to clarify with the landlord what costs are covered by your rent and what additional expenses you can expect. Discussing these in detail before signing the lease allows you to budget more effectively and avoid surprises down the line.

Property ownership verification

Before signing a lease, request to see the property’s title deed or proof of ownership. Verifying that the landlord is the legitimate owner, or at least authorised to rent out the property, can protect you from potential scams. Property ownership verification is especially recommended for those new to renting in Hungary, as it reduces the risk of legal issues related to unauthorised rentals.

Bilingual contracts

In Hungary, having your lease agreement in both Hungarian and English is invaluable for clarity. If you are not fluent in Hungarian, consider having a bilingual friend or professional translator review the lease to ensure that you fully understand your rights and responsibilities. This is a critical step in avoiding misunderstandings while renting in Hungary.

Avoiding scams

Avoid rental scams by refraining from making payments until you’ve viewed the apartment and met the landlord in person. Listings that seem unusually cheap or landlords who push you to make quick decisions can be red flags. Take your time, conduct thorough research, and trust your instincts to make safe decisions when renting in Hungary.

Common costs

In addition to the rent, you may be responsible for condominium fees, which cover shared building maintenance and other services. These fees vary depending on the building’s amenities and management practices, so be sure to ask about them during initial discussions with the landlord. This is a key consideration for anyone on a budget to rent in Hungary, as these costs can significantly affect your monthly expenses.

real estate market, Budapest
Source: depositphotos.com

Address registration

After moving into your apartment in Hungary, it’s important to register your address with local authorities to obtain an address card (lakcímkártya). This registration is essential for various administrative needs, such as opening a bank account or accessing health insurance, and it establishes your legal residence in Hungary.

Language assistance

If you’re not fluent in Hungarian, having a bilingual contact to assist with rental agreements and paperwork can be invaluable. You might consider hiring a local real estate agent or legal advisor who can help with translations and clarify contract terms. Language support is particularly helpful for expats renting in Hungary, as it ensures a clear understanding of all obligations.

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Featured image: depositphotos.com

Romanian press: Orbán’s son-in-law to purchase high-end office building in Bucharest

Ráhel Orbán and István Tiborcz Orbán's son-in-law

Orbán’s son-in-law, István Tiborcz is reportedly in the final stages of negotiations to acquire the Equilibrium 1 office building in Bucharest through his Gránit Fund Management. Romanian newspaper Cotidianul reports that Swedish property giant Skanska may sell the building for between EUR 40-50 million, marking Tiborcz’s first major foray into Romania’s real estate market.

Orbán’s son-in-law enters into the Romanian real estate market

The Romanian Cotidianul news portal reports that Equilibrium 1, a Class A office building in Bucharest’s Barbu Văcărescu business district, offers 20,700 square metres of leasable space across 12 floors. Completed in 2019, the building features a modern design and 3,500 square metres of green space, attracting key tenants like Signal Iduna and Secom Healthcare. If Orbán’s son-in-law, István Tiborcz, completes the acquisition through Gránit Asset Management, it will reinforce his growing influence in the real estate sector and mark a strategic expansion into Central and Eastern Europe. This deal also aligns with Skanska’s model of developing and selling fully leased office projects.

Equilibrium 1 Bucharest Tiborcz
Photo: Skanska

Skanska in Romania

As Cotidianul also notes, Swedish property giant Skanska, with global operations worth over EUR 13.8 billion in 2023, has been a key player in Romania’s office development sector since re-entering the market in 2007. Alongside Equilibrium 1, Skanska completed Equilibrium 2 in December 2022, though the latter has a lower occupancy rate, potentially delaying its sale. Orbán‘s son-in-law, István Tiborcz, has shown interest in acquiring Equilibrium 1 through Gránit Asset Management, aligning with Skanska’s model of selling fully leased office projects. Previous Skanska sales in Bucharest include Green Court and Campus 6, valued at EUR 129 million and EUR 150 million, respectively.

Hungarian investments in Romania

According to the news portal, the acquisition of Equilibrium 1 by Gránit Asset Management, led by Orbán’s son-in-law, István Tiborcz, highlights a growing trend of Hungarian investments in Romania’s real estate market. Investors from Hungary, such as the Adventum fund and Indotek, have been drawn to Romania’s economic potential, with Adventum purchasing Hermes Business Campus for over EUR 150 million and Indotek acquiring Plaza M mall and two office buildings in Bucharest. This surge in Hungarian interest is driven by surplus capital and the need to diversify, given Hungary’s smaller market size, alongside Romania’s relatively stable and growing real estate sector.

Tiborcz’s other investments

As we have reported HERE, Orbán’s son-in-law, István Tiborcz, is set to profit from another state-backed deal in Hungary, with Magyar Posta scheduled to purchase a logistics centre developed by his company, Waberer’s Group, in Ecser by 2026. This follows a familiar pattern of government support, with state institutions acquiring assets from Tiborcz’s ventures at inflated prices. The Hungarian government has discreetly invested billions in projects tied to Tiborcz, including real estate developments and solar plants, raising concerns about the transparency of Hungary’s economic policies.

Ráhel Orbán and István Tiborcz Orbán's son-in-law
Photo: Instagram / rahel_orban

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Addressing Budapest’s housing crisis: Proposal to restrict home purchases by non-EU nationals

Budapest real estate housing crisis in Budapest's real estate market

Budapest’s leaders are taking bold steps to tackle the housing crisis, proposing a two-year ban on property purchases by non-EEA nationals and pushing for tax reforms to boost long-term rentals.

Addressing the housing crisis in Budapest

Világgazdaság reports that Budapest’s municipal leadership is set to propose a new housing policy aimed at addressing the housing crisis, with a vote expected next Wednesday. Ambrus Kiss, Director General of the Mayor’s Office, outlined key points of the plan during a background meeting. While the capital’s leadership supports the government’s efforts to tackle the housing crisis, they argue that the current measures are insufficient and require additional action. Gergely Karácsony, the city’s mayor, is presenting a ten-point programme seeking government support, which includes the regulation of short-term rentals like Airbnb.

real estate Hungary Budapest
Photo: Daily News Hungary ©

Supporting the rental market

The city is pushing for the government to expedite the implementation of these regulations and introduce tax reforms aimed at encouraging long-term housing. Proposed changes include increasing the tax burden on short-term rentals while reducing taxes for long-term rentals. Specifically, they suggest halving the tourism tax for rentals of more than one year and exempting income tax for housing rented out for more than three years. These measures are designed to motivate homeowners to place their properties on the rental market and alleviate the housing crisis.

Will non-EU nationals be banned from buying a house in Budapest?

Ambrus Kiss has proposed a significant measure to alleviate Budapest’s housing crisis, suggesting a two-year moratorium on property purchases by non-EEA nationals in the capital. This restriction would primarily affect buyers from outside the European Economic Area, including Chinese, Russian, and Arab nationals. The aim is to curb the trend of foreign investors purchasing apartments as assets, which often remain vacant, exacerbating the housing shortage. Kiss emphasised that similar regulations exist in other countries and are not considered discriminatory, highlighting the need to prioritise homes for residents over investments.

Budapest rent prices property prices exceeded property in hungary
Photo: depositphotos.com

Further initiatives

Additionally, the city is urging the government to remove the requirement for parking spaces in new housing developments, arguing that this regulation hinders the adaptive reuse of buildings. This change would enable greater flexibility in repurposing spaces such as former schools into residential units, potentially increasing the housing supply and addressing the ongoing housing crisis in Budapest.

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Hungary’s commercial real estate market poised for slow recovery, says central bank report

commercial real estate budapest

Hungary’s commercial real estate market may have “bottomed out” and could be ahead of a “slow turnaround”, the National Bank of Hungary (NBH) said in a report on the sector published Thursday.

Tamás Nagy, a director at the NBH, said disappointing GDP had weighed on the sector but accelerated, broad-based growth could mitigate cyclical and structural risks. He acknowledged higher vacancy rates on the office and industrial-logistics property market, boosted by handovers amid modest demand, but said the NBH saw little risk if the vacancy rate continued to climb in the mid-term.

commercial real estate budapest
Hungary’s commercial real estate market may have “bottomed out” and could be ahead of a “slow turnaround”. Photo: depositphotos.com

He said a record volume of projects in the pipeline would lift industrial-logistics property stock significantly in the coming two and a half years. Commercial property market investment in Hungary fell in H1 2024, but yields stagnated, he added. Outlays of commercial property loans climbed in the first half, even though lending conditions did not ease, he said. Improving consumer confidence has improved vacancy rates at shopping centres in the capital and other cities around the country, he added.

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Featured image: depositphotos.com

House frozen in time: Inside Pest County’s abandoned modern villa

forgotten modern villa in Pest County

An abandoned modern villa in Pest County recently captured the Hungarian urbex community’s attention. Many are curious to find out what forced this unique architectural gem’s owners to leave such an astonishing home to decay for eternity. The books and kitchen supplies left behind suggest that the family had to leave in a rush. Curious explorers ventured inside and found some papers that provided a possible background story of the luxurious villa covered in dust.

Abandoned villa in Pest County

As Pénzcentrum writes, urban exploration, or “urbex”, has grown into a popular movement centred on discovering and documenting forgotten, abandoned spaces. From decaying industrial complexes to forgotten homes, the allure of exploring these neglected sites lies in their eerie beauty and untold stories. In Pest County, one such discovery has captivated the Hungarian urbex community—a modern villa, abandoned yet half-furnished, standing as a ghostly reminder of a different time. With its striking architecture and luxurious touches still intact, this villa in Pest County once embodied wealth and success, but now it quietly decays, its grandeur slowly fading.

What happened?

This derelict villa in Pest County tells a broader story of Hungary’s housing crisis, a reflection of the economic hardships faced by many homeowners. According to documents found inside the villa, the owners took out a substantial loan of HUF 160 million (EUR 399,476) in 2011. Of course, we cannot be a hundred percent sure about what happened, but the economic context and the papers strongly suggest that the family could not keep up with paying back the loan.

Once a symbol of affluence, the villa now lies empty, much like other luxury estates that have met similar fates in recent years. As urban explorers wander its halls, the villa’s past echoes through its empty rooms—a forgotten dream left behind, caught in the quiet aftermath of financial ruin.

Urbex’s growing popularity

Urban exploration is not merely about visiting abandoned places; it is a form of cultural documentation that reflects societal changes and historical narratives. Each site holds layers of meaning—stories of families who lived there, economic shifts that led to abandonment, and even architectural styles that tell us about past trends. The villa in Pest County serves as a microcosm of these larger themes, inviting explorers to ponder not just what was lost but also what can be learned from these spaces. The shared interest in photography, history and adventure (of course) brings together these communities, thus it is also an opportunity to meet like-minded people.

Unique places left behind

In another post of spiral urbex, they share another example of neglect within urban landscapes, fire trucks lie abandoned in the yard of a fire station. Plans were once set in motion for their recovery; they were intended to be restored and displayed in a museum dedicated to fire service history. However, due to persistent funding shortages, these plans never materialised, leaving these vehicles exposed and vulnerable for years.

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Válasz Online: Is Orbán’s son-in-law on the brink of securing a big business?

tiborcz Orbán's son-in-law property scam

Orbán’s son-in-law, István Tiborcz, has gained from state-backed deals, sparking concerns of cronyism. His ventures, including real estate, receive government support and inflated buyouts, highlighting a pattern of state capitalism favouring politically connected figures.

Big plans before 2026?

Válasz Online suggests that Orbán’s son-in-law, István Tiborcz, is set to benefit from another lucrative state-backed deal as his company, Waberer’s Group, develops a logistics base in Ecser, scheduled to be purchased by Magyar Posta in 2026. This reflects a recurring pattern of government support for Tiborcz, where state institutions acquire assets from his business ventures, often at inflated prices. The government has also discreetly invested billions in properties and solar plants linked to Tiborcz’s circle, raising further concerns of favouritism. This strategy of state capitalism shields politically connected figures like Tiborcz from market risks, enabling them to profit significantly through state aid, favourable loans, and strategic acquisitions, casting doubt on the transparency of Hungary’s economic policies.

Major real estate projects

The development of major real estate projects tied to Orbán’s son-in-law, István Tiborcz, reveals a pattern of state-backed financial support and preferential treatment. The Dürer Park project, managed by Tiborcz’s private equity fund, was declared a priority investment by the Orbán government in 2021, exempting it from local regulations and fast-tracking its approval. Similar support was given to other developments, such as those at Bosnyák Square and BudaPart, where state-owned banks provided substantial loans. By 2022-23, the government discreetly purchased significant portions of these projects at inflated prices, likely costing over HUF 600 billion (EUR 1.50 billion), ensuring substantial profits for those involved.

Magyar Posta logistic centre

Orbán’s son-in-law, István Tiborcz, through his majority-controlled Waberer’s Group, recently completed a major logistics centre in Ecser, near Budapest, marking the company’s largest greenfield investment to date. The 13.5-hectare site, acquired from billionaire Dániel Jellinek, benefited from significant state support. The Hungarian government has also classified the project as of national economic importance. In a move that further solidifies Tiborcz’s position, Magyar Posta will purchase the centre from Waberer’s after its completion in early 2026, positioning this deal as one of the key business ventures of the current parliamentary term.

Post office Hungary
Photo: facebook.com/MagyarPosta

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Airbnb effect: Budapest apartment prices start dropping after Airbnb ban

budapest property real estate housing residential area university apartment hotel inflation

Although short-term rentals, including Airbnb, won’t be banned in Budapest’s District VI (Terézváros) until January 2026, the effects of the September vote are already being felt in the local real estate market, according to László Balogh, chief economic analyst at Ingatlan.com.

Effect of Airbnb ban already felt in Budapest

Since August, the price per square meter for apartments smaller than 50 square meters—which are commonly used as Airbnb rentals—has dropped by about 5%, now averaging HUF 1.037 million (EUR 2,590), Népszava reports. At the same time, the number of properties for sale in this segment has risen sharply from 130 to nearly 200, marking a 50% jump in just three months. In contrast, neighbouring District VII has seen a slight increase in prices during this period.

Terézváros, where short-term rentals are most concentrated, has 2,700 properties listed on Airbnb, accounting for 8-9% of the district’s housing stock. Across all of Budapest, there are around 15,000 Airbnb listings, making up about 1.5% of the city’s total property market.

budapest district vi airbnb property prices
Photo: depositphotos.com

Experts had already anticipated two options for owners of these properties: either sell them or switch to long-term rentals. This shift could slow price growth in the affected areas, possibly even dampening the expected rise in housing prices in the coming year. The ripple effects could also be felt in nearby districts and potentially across the city, where overall price increases may be tempered.

Another surge in prices expected next year?

However, Balogh also pointed out another factor influencing the market: next year, the Hungarian government will pay out around HUF 1,300 billion (EUR 3.25 billion) in bond yields, some of which is likely to flow into real estate, particularly into highly attractive downtown properties. This influx of capital could neutralise the current Airbnb-related price drops, potentially leading to another surge in property prices.

There’s still a lot of uncertainty surrounding Airbnb in Budapest. With no local regulations in place and no clear direction from the government, the situation remains fluid. Lajos Böröcz, Secretary General of the Hungarian Hospitality Employers’ Association, emphasised that even in a worst-case scenario, where Airbnb rentals become unviable, Budapest’s diverse accommodation offerings would still meet the needs of most visitors. However, the sector might lose those travellers who are specifically drawn to Airbnb properties and unwilling to settle for alternatives.

UPDATE

BREAKING NEWS! Another huge tax hike from the Orbán cabinet: this time it’s on short-term rentals in Budapest

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Featured image: depositphotos.com

Orbán government may launch unique programme to boost Hungarian property market

Spontaneous euroisation Budapest rent prices property market prices exceeded property in hungary renting in Hungary rental

The Orbán government aims to allow Hungarians a one-off opportunity to use savings in voluntary pension funds for home purchase or renovation, or to repay home loans, in 2025, Zsolt Kovács, a National Economy Ministry commissioner, said on public television on Wednesday.

The government measure, which is in the public consultation phase, would allow Hungarians to apply as much as their entire voluntary pension fund savings for home purchase or renovation for themselves or their family members, Kovács said on news channel M1.

He noted that there were about 1m voluntary pension fund members at present. Some of those members could have as little as a few hundred thousand forints on their accounts, while the balances of others could be in the tens of millions of forints, he added.

Sovereignty Protection Research Institute Orbán government
Photo: FB/Orbán

More than HUF 2,000bn in savings are in voluntary pension funds, and if “a few tenths” of those savings are mobilised by the measure, it could be considered a “real success”, Kovács said.

Digital Hungary app popular

Government investments with a combined value of HUF 136bn have been completed over the past two years, government spokesperson Eszter Vitályos said at a regular press briefing on Wednesday. The 31 projects included HUF 1bn of kindergarten and nursery renovations, HUF 1.3bn of transport developments and road reconstruction projects, and HUF 4.2bn of urban upgrades, Vitályos said.

Investments of around HUF 6bn were completed in the area of economic development, and major projects were finished at education, culture, sport, healthcare and social institutions, she added. She noted that the Digital Hungary mobile application had been downloaded more than 200,000 times, and the national healthcare mobile app could now be used to make appointments at more than 80 healthcare institutions.

Digital Citizenship Hungary Orbán government
Photo: PrtScr/Youtube

Read also:

  • Hungary’s property market on track for 30% sales increase in 2024 – read more HERE
  • Budapest Mayor Karácsony urges Orbán to address housing crisis as rent prices soar – details in THIS article

Featured image: depositphotos.com

Hungary’s property market on track for 30% sales increase in 2024

budapest real estate

Home sales in Hungary could reach 130,000 this year, climbing from around 100,000 in 2023, David Valko, the chief analyst for OTP Ingatlanpont, the real estate broker of OTP Bank, said on Tuesday.

Valkó said that next year, rules allowing Hungarians to tap their savings in voluntary pension funds for home purchases could rechannel as much as HUF 1,000bn to the market.

He noted that home sales had climbed 36pc in Q1 and 20pc in Q2, according to transactions data from the Central Statistics Office (KSH). He added that nominal prices could rise by 8-10pc for the full year.

Erika Kasziba, in charge of business development for home lending at OTP, said local lenders’ home loan outlays could double in 2024 from HUF 600bn (EUR 1.5)bn) a year earlier.

Zsuzsa Lipták, who heads OTP Group’s listings portal Zenga.hu, said visitor numbers were up 35 percent from a year earlier. More than 1 million use the site each month, she added.

As the OTP reports, the EU’s all-items price index for April-June showed an annual increase of 2.9%. The most spectacular contributors to this positive result were some Central European countries. Poland led the way with a 17.7% increase, followed by Bulgaria (15.1%), Lithuania (10.4%), Croatia (10%), and Hungary in fifth place (9.8%).

Hungary’s house price index shows that house prices almost tripled between 2015 and the middle of this year, remaining the highest in the EU.

As we wrote today, Budapest Mayor Karácsony urges Orbán to address housing crisis as rent prices soar, details HERE.

related article: Here’s what to expect from Budapest’s real estate market in 2025

Budapest Mayor Karácsony urges Orbán to address housing crisis as rent prices soar – UPDATE

real estate Hungary Budapest

There is a housing crisis in Hungary, but especially in Budapest, with rents skyrocketing. But to solve this, we need two parties: the Orbán Government and the Budapest Mayor, who is part of the opposition.

Home rental rates in Hungary rise 9.6pc in September

Home rental rates in Hungary rose 9.6pc year-on-year in September, data compiled by the Central Statistics Office (KSH) from listings site Ingatlan.com show.

Rental rates in the capital increased 9.9pc.

In a month-on-month comparison, home rental rates edged down 0.1pc for the whole country and inched up 0.4pc in Budapest.

The monthly rental rate for a flat in Budapest’s District XIII and II, where the most rentals were listed, ranged between HUF 250,000 and HUF 350,000. The average rental rate was HUF 230,000 in Debrecen, HUF 150,000 in Pecs and HUF 160,000 in Szeged.

Karácsony and the government sees housing crisis

The Prime Minister’s recent statements suggest that the government understands that the housing situation, mainly affecting Budapest, “is unsustainable,” Gergely Karácsony, the mayor of Budapest, said on Monday.

The mayor said the housing crisis was an acute challenge in a letter to the prime minister. In a Facebook post, Karacsony noted that housing price and rent increases have now outstripped growth in household incomes.

He said Budapest had proposals and specific schemes at the ready, worked out in cooperation with the staff of the European Commission and a government body, to ensure the provision of affordable rental accommodation and to convert underused publicly owned buildings into housing, which he called the biggest housing scheme of the past decades.

He added that the 20 billion forint program would be implemented once the government “finally publishes” the related tenders so that Budapest can access related EU funding.

“I am ready to negotiate … to solve the housing crisis in Budapest,” Karácsony said.

Read also: Here’s what to expect from Budapest’s real estate market in 2025

Govt could remove obstacles to using voluntary pension savings for home purchase, renovation

Related news is that Hungary’s government has drafted a measure allowing Hungarians to use savings in voluntary pension funds for home purchases or renovations, tax-free, during the 2025 calendar year.

Social consultations on the measure will start on Monday, the National Economy Ministry said on Monday.

Over 1 million Hungarians are members of voluntary pension funds. On average, they have more than HUF 2m savings per member.

Read also: Hungarian housing market: Buyer demand reaches 2-year high

UPDATE

Fidesz councillor: Budapest suffering from housing crisis

Budapest is suffering from a housing crisis and the mayor of Budapest bears responsibility for it, Alexandra Szentkirályi, Fidesz’s group leader in the Budapest Assembly, said on Facebook on Tuesday.

In his manifesto five years ago, Gergely Karacsony promised to build subsidised housing and student dormitories, “and he had a series of other fake plans that came to nothing,” Szentkirályi said. The “thousands of billions” spent in the city, she added, had yielded “zero affordable rentals or dorms”, and the municipality’s housing agency had only managed to rent out three flats.

“Karácsony and his team are trying to sweep their total housing failure under the carpet, but they are the ones leading this city. Naturally, they are expecting solutions from the government, and now that the government has had enough of their inactivity, City Hall has started to panic,” she said.

Here’s what to expect from Budapest’s real estate market in 2025

Budapest real estate housing crisis in Budapest's real estate market

Hungary’s real estate market is poised for significant growth. This surge is anticipated to be driven by a tremendous influx of HUF billions from government bonds and pension savings, predominantly impacting properties in Budapest and major towns.

Real estate prices to face a sharp rise in 2025

As Telex reports, Hungary’s real estate market is set to experience a sharp rise in house prices, with an expected increase of 10-15% in 2024, according to an analysis by Ingatlan.com. This surge, driven by government bonds and pension savings potentially adding over HUF 1,000 billion (approximately EUR 2.5 million) to the market, will mainly impact properties in Budapest and major cities. Although Hungarian real estate saw significant depreciation in 2023 and early 2024, the forecasted price rise would represent a strong recovery, especially with inflation projected to remain low next year.

real estate market, Budapest
Source: depositphotos.com

Never-ending price hike?

Hungary’s real estate market continues to see notable price increases, with house prices rising by 6.5% in August and 6.7% in September compared to last year, according to Ingatlan.com’s house price index. The rise, however, has been uneven across regions. Budapest experienced a significant 9.1% increase, while the northern Great Plain, including the industrial hub Debrecen, saw an 8% rise. In contrast, northern Hungary recorded only a 1.8% increase, highlighting regional disparities in the real estate market. In Budapest, the average price per square metre reached HUF 1.07 million, with the 5th district being the most expensive at HUF 1.73 million, while the lowest-priced areas include the 20th district and Salgótarján.

Government bonds and pension savings

Looking ahead, the market is expected to accelerate further as an additional HUF 1,000 billion (approximately EUR 2.5 million) could enter the housing market by 2025, driven by pension savings and government bonds. This potential windfall, equivalent to a significant portion of the annual market turnover, will likely focus on properties in Budapest and larger cities, boosting demand and further driving up real estate prices. With the Hungarian state set to pay out substantial sums to government bondholders in the coming years, many investors plan to reinvest their returns into the property market, potentially fuelling further growth in house prices.

Hungary’s real estate market could see further growth following a recent government amendment allowing savings from voluntary pension funds to be used for housing purchases. While details are yet to be clarified, this policy may drive up house prices. A government policy paper also highlights the challenges young people face in acquiring homes, suggesting future measures to boost house-buying and construction. However, potential regulations like stricter Airbnb rules or rent caps could temper price rises driven by investors. According to Ingatlan.com, at least 145,000 sales are expected in 2025, with house prices forecasted to increase by over 10-15% next year.

Budapest rent prices property prices exceeded property in hungary
Photo: depositphotos.com

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Latest inflation data out: Hungarian inflation back on target, property prices keep increasing

budapest property real estate housing residential area university apartment hotel inflation

Hungary’s annualised consumer price index reached 3.0pc in September, falling from 3.4pc in the previous month, according to data released by the Central Statistics Office (KSH) on Thursday.

Inflation in Hungary decreases

The KSH data show food prices rose 3.7pc in September. The price of flour jumped 32.9pc, milk prices rose 13.8pc and the price of eating out increased 7.6pc, but noodle prices fell 5.8pc, egg prices dropped 3.5pc and the price of poultry edged 2.4pc lower.

Household energy prices fell 5.0pc. Gas prices were 9.4pc lower and electricity prices declined 1.3pc.

Consumer durable prices edged down 0.2pc.

Motor fuel prices fell 9.5pc.

Prices of spirits and tobacco products increased 3.9pc and clothing prices rose 3.3pc. Service prices increased 8.4pc.

Core inflation, which excludes volatile fuel and food prices, was 4.8pc.

The CPI calculated with a basket of goods and services used by pensioners was 3.2pc.

In a month-on-month comparison, consumer prices edged down 0.1pc as motor fuel prices dropped 3.7pc.

Minister’s comments

Commenting on the fresh data, National Economy Minister Márton Nagy pointed to the success of government measures to bring high inflation, a consequence of the war and sanctions, down to a “persistently low” level.

The government is keeping some of those measures in place, such as an online price comparison platform featuring products stocked at the biggest supermarket chains in the country, he added.

Persistently low inflation translates as predictability and strengthens consumer confidence, boosting consumption and supporting economic growth, he said.

Home prices rise 6.7pc in September – ingatlan.com

Home prices in Hungary rose 6.7pc year-on-year in September, listings site ingatlan.com said on Thursday.

budapest property real estate housing residential area university apartment hotel
Budapest, Hungary. Source: depositphotos.com

Home prices in the capital climbed 9.1pc. Price growth continued to accelerate, ingatlan.com said.

Prices of homes in Budapest averaged HUF 1,070,000/sqm (EUR 2,673) at the start of October, but were as high as HUF 1,730,000/sqm (EUR 4,322) in the central District V.

In Debrecen, Hungary’s second-biggest city, home prices averaged HUF 839,000/sqm (EUR 2,096). Homes were the cheapest in Salgotarjan (NE Hungary) at HUF 282,000/sqm (EUR 705).

Next year, ingatlan.com augurs a 10-15pc increase in home prices.

Read also:

Featured image: depositphotos.com

Hungarian housing market: Buyer demand reaches 2-year high

Hungarian housing market - real estate

Buyer interest in the Hungarian housing market has surged, as government home-building subsidies and lower interest rates create favourable conditions for purchasers.

According to Pénzcentrum, in Budapest, 23 out of every 100 homes sold were purchased by first-time buyers, while in rural areas this figure rises to 26%. Experts from Duna House estimate that the average price for a first home is HUF 44 million (EUR 110,000) in the capital and HUF 34 million (EUR 85,000) in rural areas.

Government subsidies, falling mortgage rates, and an improving economic outlook have sparked a Hungarian housing market boom in 2024, with buyer demand reaching its highest level in two years. Duna House reports that 42% more properties have been sold in Hungary so far this year compared to the same period in 2023. The real estate market is currently driven by investors, families moving to larger homes, and first-time buyers.

Data from Duna House reveals that the proportion of first-time homebuyers in the Hungarian housing market has increased by 1% in Budapest and by 2% in rural areas compared to last year. This means that 23% of properties sold in Budapest, and 26% in rural areas, have been purchased by first-time buyers, according to Károly Benedikt, Head of PR and Analysis at Duna House.

Significant rise in first-time homebuyers in the Hungarian housing market

budapest property real estate housing market residential area university apartment hotel
Budapest, Hungary. Source: depositphotos.com

First-time buyers in Budapest are spending an average of HUF 44 million (EUR 110,000) on properties that offer 52 square metres of living space—5 square metres less than last year. In rural areas, they are paying approximately HUF 34 million (EUR 85,000) for much larger homes, averaging 84 square metres.

A third of first-time buyers in Budapest are aged between 20 and 30, while more than a quarter are between 30 and 40. The age distribution is similar in rural areas, where 31% of first-time buyers fall into each of these age brackets.

“First-time homebuyers benefit from programmes such as the 10% deposit option, CSOK Plusz subsidies, which include partial debt relief, and waived fees. These incentives, coupled with lower interest rates and an improving economy, are helping more people purchase their first home,” Benedikt explained.

lake balaton property real estate (1) housing market
Lake Balaton. Source: depositphotos.com

The cost of a first home varies significantly across rural Hungary. In Eastern Hungary, properties are being sold for between HUF 18.3 million (EUR 46,000) and HUF 38.4 million (EUR 96,600). In Western Hungary, prices range from HUF 23.7 million (EUR 60,000) to HUF 31 million (EUR 78,000). In Pest County, near the capital, the average price stands at HUF 43.3 million (EUR 109,000), close to the average in Budapest.

According to Duna House sales data, 19.3% of homes sold last year were bought by first-time buyers in the Hungarian housing market. This year, in the first eight months, the share remains almost identical at 19.4%. However, a closer analysis reveals that from January to August 2023, only 11.2% of homes were purchased by first-time buyers. This year, the share has increased by over 8 percentage points, indicating a stronger presence of first-time buyers in the Hungarian housing market.

Read also:

August saw a big rise in home rental rates in Hungary, latest avarage prices here – Read here

Shifting trends in Budapest: Real estate prices, population declines, and creative housing solutions – VIDEO

 

Tourism industry raises concerns over proposed ban on short-stay accommodations in Hungary

Budapest Hungary

The Hungarian Hotel and Restaurant Association has recommended drafting regulations on short-term accommodation based on international precedents and consultations with professional organisations.

In a statement sent to MTI, the association noted that homestays account for over half of the capital’s tourism accommodation capacity.

It recommended suspending the issue of short-term rental permits for a year, in 2025, during which time surveys could be conducted and studies made, with the involvement of professional organisations, allowing regulations to be drafted that could serve as a paradigm at the European level.

The association said regulation should focus on the inner districts of the capital, especially the area designated a World Heritage Site. Extending the rules nationwide would be unnecessary.

The association also proposed applying the same tax rules to commercial accommodations as to short-term rentals.

As we have already reported, in Budapest, the mayor of the 6th district, Tamás Soproni (Momentum Party), tried to get residents to vote for the ban. The turnout was very low, 20%, and the pro-banning campaign won by just a few percent (54-46%), but the mayor took the result as valid and credible. Related article: Airbnb issue in Hungary: with low turnout and almost identical turnout, the VI district orders a ban

The ruling party has found a good reason with this by no means representative vote to regulate “Airbnb apartments” across the country heavily, and already the minister in charge has indicated that a regulation is in the works.

It is essential to point out here that the wealthiest Hungarians with links to the ruling party own a large proportion of Hungarian hotels and expect some boom if they knock out the small landlords who currently account for more than half of Hungarian overnight stays.

Several tourism experts have already spoken out about the huge loss Hungarian tourism will suffer if the government bans short-term accommodation. Moreover, the problem of accommodation will not be solved because the statistics do not show that.