Record year for Hungary’s housing market – but how long can the momentum last?

At the online event of 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 its expected direction. MKT is one of Hungary’s oldest and largest professional economics organisations and serves as an important forum for professional dialogue on economic and social issues.

One of the key takeaways from the discussion: the market remains strong, but structural tensions are becoming increasingly visible.

• Nearly 140,000 residential property transactions took place in Hungary in 2025
• The average price of newly built homes in Budapest reached HUF 1.8 million/m²
• Prices of prefabricated panel apartments rose by 35% in one year
• Residential mortgage lending reached an all-time high: HUF 1,950 billion

One of the biggest market drivers of the year was the Otthon Start Programme (OSP). The announcement alone triggered a significant wave of demand, and after its launch in September, market activity accelerated sharply.

At the same time, it is becoming increasingly clear that:

➡️ entering the housing market is becoming increasingly difficult for middle-income households,

➡️ a significant share of subsidies goes to higher-income households,

➡️ without strengthening the supply side, price growth is not sustainable over the long term.

An especially interesting trend is that buyers now pay much closer attention to energy efficiency and sustainable running costs. Modernised homes sell faster and can achieve prices up to 15–25% higher.

According to the experts, in the coming period:

• price growth may slow,
• the market may stagnate,
• however, a significant price decline is unlikely.

The longer-term question is no longer whether there is demand, but rather: 👉 how can Hungary build a predictable, sustainable and socially accessible housing market?

🎥 The full presentation can be watched here: YouTube recording

Speakers at the event: Dorottya Papai, MRICS (REMAX GO Commercial), Balazs Sandorfi

Moderator: Balazs Pazmany (Erste Asset Management, MKT Real Estate Section)

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