Budapest - Real Estate Market Breaks Records

Record growth in the Budapest real estate market — analysis of trends and prospects

The real estate market of the Hungarian capital is experiencing an unprecedented boom at the beginning of 2025. According to leading brokerage company Duna House, the volume of real estate transactions in Budapest and the surrounding areas in January and February 2025 exceeded the figures for the same period last year by an impressive 36%. Budapest real estate is attracting more and more foreign buyers. In 2024, about 8,000 foreigners purchased real estate in Hungary, which is 10% more than the previous record of 2018. The most active are citizens of Germany, Slovakia, China and Russia. Foreign investors are attracted by the relatively low prices of real estate in Budapest compared to other European capitals, as well as the high potential for future growth in value. In addition, many foreigners consider buying real estate in Hungary as an opportunity to obtain a residence permit in the country and move freely throughout the European Union.

Factors driving price growth

Experts highlight several key factors driving the record growth in the Budapest real estate market:

1. High demand — buyer activity increased significantly at the beginning of 2025, which directly affected prices. People are looking to buy real estate in the capital of Hungary both for their own residence and for investment purposes.
2. Limited supply — the number of available properties does not keep up with the growing demand, which provokes further price increases. Developers cannot fully meet the needs of the market, which creates a supply deficit.
3. Economic stability — the Hungarian economy is showing steady growth, which increases investor confidence. A stable economic situation contributes to the inflow of capital into the real estate market.
   Attractiveness for foreign buyers — Budapest remains one of the most affordable European capitals for purchasing real estate. Foreign investors are actively investing in Hungarian real estate, which also stimulates price growth.

The average price of housing in Budapest at the beginning of 2025 reached a record 60.4 million Hungarian forints (around 185,000 euros), which is 6% higher than last year. At the same time, prices for new buildings in the capital vary from 2,500 to 3,500 euros per square meter, and in the central areas of the city they can reach 5,500 euros per square meter. The average purchase price is around 70 million Hungarian forints (around 215,000 euros). It is interesting to note that the vast majority of transactions (85%) are concluded for residential purposes, while 15% of purchases are made for investment purposes.

Budapest Real Estate Market Forecasts and Prospects

Experts predict a further increase in real estate prices in Budapest. From 2014 to 2023, property prices in Hungary have increased by an impressive 231%, and this trend is likely to continue in the near future. Factors that contribute to growth, such as high demand, limited supply, and economic stability, will continue to influence the market. The city is increasingly attracting tourists and expats, which creates additional demand for housing. However, some analysts warn of possible “overheating” of the market and recommend potential buyers to carefully evaluate their options before making a deal. Rapid price growth can lead to the formation of a “bubble” in the property market, which can lead to a sharp drop in values ​​in the future. Despite these concerns, most experts agree that the Budapest property market retains significant potential for growth. In addition, the Hungarian government actively supports the development of infrastructure and creates favorable conditions for foreign investors.

Investment Opportunities and Recommendations

For those considering investing in Budapest real estate, experts recommend paying attention to the following market segments:

1. New buildings in developing areas — purchasing real estate at the early stages of construction can provide significant potential for future value growth. Areas with developing infrastructure and good transport accessibility are considered particularly promising.
2. Properties for reconstruction — purchasing and renovating old apartments or houses in central areas of Budapest can be a profitable investment. After reconstruction, such properties can be sold or rented out profitably.
3. Income houses — purchasing entire buildings with several apartments can provide stable rental income and good prospects for property value growth in the long term.

When choosing an investment property, it is important to consider the location, condition of the property, potential for renovation or redevelopment, as well as the general market situation. Consulting with an experienced realtor or investment consultant can help you make an informed decision.

In conclusion, the record growth of the Budapest real estate market in early 2025 reflects a combination of factors, including high demand, limited supply, economic stability and attractiveness to foreign investors. These trends create favorable conditions for further price growth and open up wide investment opportunities.
However, potential buyers and investors should remain vigilant and carefully analyze the market before making decisions. Rapid price growth may carry the risk of “overheating” the market, so it is important to ensure the reliability and soundness of investments.

Overall, the Budapest real estate market remains attractive to a wide range of buyers and investors. The city offers a variety of opportunities, from new developments in developing areas to properties for reconstruction in the center. With the right approach, investing in Budapest real estate can provide high returns and good prospects for capital growth. Budapest is confidently securing its status as one of the most promising real estate markets in Europe. All that remains is to choose the right property and take a step towards new opportunities!