140,000 transactions, 35% rise in panel apartment prices – has a new era begun in Hungary’s housing market?
Hungary’s housing market has undergone significant changes in recent times. Demand is strong and home prices have risen, while a growing number of structural issues are emerging that may shape how the market operates over the longer term.
At an online professional event organised by the Real Estate Section of the Hungarian Economic Association (MKT), we gained a comprehensive overview of the current state of Hungary’s housing market and the possible directions it may take in the period ahead.
The discussion featured Dorottya Pápai, MRICS, an expert at REMAX GO Commercial, and Balázs Sándorfi, an expert at Bankmonitor, and was moderated by Balázs Pázmány, of Erste Asset Management and the MKT Real Estate Section.
Strong figures, mounting pressures
2025 was an exceptional year for the housing market in several respects.
The key figures clearly illustrate the market’s momentum:
- nearly 140,000 residential property transactions were completed,
- in Budapest, the average price of newly built homes reached HUF 1.8 million/m²,
- panel apartment prices rose by 35% year-on-year,
- residential mortgage lending reached a historic record of HUF 1,950 billion.
These figures clearly point to strong demand. At the same time, a growing number of structural pressures are emerging behind the market trends and deserve to be examined over the longer term.
The Otthon Start Programme gave demand fresh momentum
One of the market’s main drivers was the Otthon Start Programme (OSP).
The announcement of the programme alone triggered a noticeable wave of demand, and following its launch in September, housing market activity accelerated sharply.
Government programmes, however, can do more than stimulate demand; they can also affect the structure of the market.
One of the key takeaways from the event was precisely that demand alone is not enough to create a sustainable housing market over the long term.
The middle class is facing growing difficulties
While the housing market as a whole is strong, entering the market may be increasingly challenging for those without substantial equity.
For middle-income households, the combined effect of property prices and financing conditions may make buying a first home increasingly difficult.
The distribution of subsidies is also an important issue: based on current trends, a significant share of support is more readily accessible to higher-income households.
Over the longer term, this raises the question:
how can the housing market be stimulated while keeping housing accessible to broader sections of society?
Price growth cannot be sustained without supply
Stimulating demand alone can have a significant short-term market impact. However, if supply cannot adjust adequately, this can easily lead to further price increases.
This is why one of the key questions for the period ahead may be how to increase housing supply while maintaining the right mix of homes.
A sustainable housing market is not simply a question of financing. It is equally important to have a sufficient number of homes, of the right quality and within reach of buyers.
Price is no longer the only factor
An interesting shift can also be seen in buyer decision-making.
Buyers are paying increasing attention to properties’ energy performance and long-term running costs.
This marks an important change in mindset: a property’s value is no longer determined solely by its location, size or condition, but also by how much it costs to operate and what upgrades may be required in the future.
Experience shows that upgraded homes sell faster and can command prices that are 15–25% higher.
This trend is likely to widen the gap further between modern, energy-efficient properties and homes in need of renovation.
What comes next?
Naturally, one of the most important questions raised during the professional presentation was how long the current momentum can last.
Expectations are that, in the period ahead, price growth may slow, and the market could even move into a more stagnant phase.
At the same time, a significant fall in prices does not currently appear likely.
This could mean that the next phase of the market will be less about rapid price increases and more about rebalancing and differentiation.
Well-located, modern and sustainable properties may remain more attractive, while pricing and technical condition could become increasingly important for properties with weaker fundamentals.
The real question is no longer whether there is demand
Based on the current state of Hungary’s housing market, demand still appears to be strong.
The longer-term challenge, however, is no longer simply how to generate additional demand.
Rather, it is:
how can Hungary build a housing market that is predictable, sustainable and socially accessible?
This requires a balance between supply and demand, suitable financing options, predictable regulation and a housing stock that can meet changing buyer needs over the long term.
In the coming years, therefore, the most interesting issue is unlikely to be any single market indicator, but rather how the structure of the housing market itself evolves.
The 140,000 transactions and significant price increases clearly point to a strong market. The real question for the next era, however, is how far this strength can be transformed into a sustainable market that is accessible to broader sections of society.
We would like to thank the Real Estate Section of the Hungarian Economic Association for the insightful professional discussion and the opportunity.
Speakers: Dorottya Pápai, MRICS (REMAX GO Commercial), Balázs Sándorfi (Bankmonitor)
Moderator: Balázs Pázmány (Erste Asset Management, MKT Real Estate Section)
🎥 Watch the full expert presentation!