Real Estate: Housing Prices in Hungary See Significant Growth in 2024, Market Momentum Expected to Continue in 2025
According to the December Housing Price Index from Ingatlan.com, apartment prices across Hungary rose by an average of 7.8% in 2024, with Budapest experiencing an even sharper increase of 11.8%. The average price per square meter in the capital reached HUF 1.16 million (EUR 2,805). In December alone, national housing prices increased by 0.8% compared to the previous month, while Budapest saw a 2.4% month-on-month rise.
National Market Recovery Outpaces Previous Year
The national housing market rebounded strongly in 2024, with the annual price increase of 8% being nearly triple the 2.7% growth recorded in 2023. This surge is partly attributed to significant investments outside Budapest, notably in Debrecen and Szeged. In Szeged, Chinese automaker BYD is establishing its first European factory, while Debrecen is seeing the construction of a battery factory by CATL and a new plant by German automotive giant BMW.
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Price Trends in Budapest
In Budapest, second-hand residential properties averaged HUF 1.12 million (EUR 2,709) per square meter, while newly built apartments commanded an average of HUF 1.4 million (EUR 3,386). The most expensive district for second-hand properties was the 5th, whereas the cheapest was the 20th. For newly built apartments, the highest prices were in the 12th district, averaging HUF 2.9 million (EUR 7,013) per square meter, while the 18th and 20th districts offered the most affordable options at less than HUF 1 million (EUR 2,418) per square meter.
Regional Highlights
Beyond Budapest, cities like Debrecen, Győr, Veszprém, Szeged, and Székesfehérvár lead the market for second-hand residential properties, with prices ranging between HUF 783,000 and 892,000 (EUR 1,893–2,156) per square meter. Meanwhile, Salgótarján, located in an economically lagging northern region, recorded the lowest average price of HUF 285,000 (EUR 689) per square meter. For new builds, Szeged topped the list with an average price of HUF 1.14 million (EUR 2,756) per square meter, while cities like Szekszárd, Miskolc, and Békéscsaba offered more affordable options, with prices starting at HUF 656,000 (EUR 1,586) per square meter.
Outlook for 2025
Market analysts, including OTP Ingatlanpont, predict continued momentum in 2025, with transaction volumes expected to rise by 15-20% and prices increasing by over 10% on average. An influx of new buyers, along with government subsidies, preferential loan schemes, and the maturation of government bonds, is anticipated to drive both demand and supply. Additionally, regulatory measures affecting short-term rentals, such as Airbnb, could lead to increased supply in the rental market, potentially reducing rents.
Despite the rapid price increases, Ingatlan.com’s Chief Economist László Balogh notes that the pace of appreciation may slow in the short term as the market adjusts to growing demand from investment buyers. However, regional and property-type disparities are likely to persist, with premium properties in prime locations continuing to attract the most interest.
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