Record rise in property prices in Hungary
Hungary has seen record rise in property prices in recent years. This rise is particularly noticeable in Budapest, where the average price of housing has reached staggering levels. According to available information, as of the end of the third quarter of 2024, property prices in Hungary increased against the background of overall growth in the European Union, with Bulgaria, Poland and Hungary leading the way with rates of 16.5%, 14.4% and 13.4% respectively.
Price growth factors
- The rise in property prices in Hungary can be explained by several factors. One of the main ones is the rising standard of living of the population and rising incomes, which, coupled with the increase in demand for housing, leads to a significant increase in property prices. In addition, the development of this sector is facilitated by a stable economic environment and an increase in investment in real estate, especially from foreign investors.
- It is worth noting that low interest rates on mortgages have also played an important role in stimulating demand for housing. Many Hungarians took advantage of the opportunity to buy real estate on favorable terms, which led to an additional increase in prices. In addition, state subsidized mortgage and housing construction programs also contributed to the increased affordability of housing for the population.
- Another factor influencing the price increase is the limited supply of new real estate. Despite active construction, demand still outstrips supply, especially in large cities such as Budapest. This creates additional pressure on prices and leads to their further growth.
The situation on the rental market
The increase in rental prices in Budapest was also quite significant. In 2023, the average rent was about 240,000 forints (about 80,000 euros) per month. It is worth noting that rental prices varied depending on the district — the most expensive were the 13th and 1st districts. For example, in the 3rd district, average prices were significantly higher than in other areas of the city.
There are several factors that explain Budapest’s high rental prices:
- The city attracts a large number of international students, expats and tourists, which creates additional demand for rental housing.
- Many investors buy properties with the purpose of renting them out, which also affects the price increase.
- The limited supply of quality rental housing in the city centres leads to higher rents.
High rental prices create certain difficulties for local residents, especially young professionals and families with children. Many have to look for housing in more remote areas or share an apartment with roommates to reduce their rental costs.
Install our app and get all the tools you need to search for real estate abroad in your smartphone! The mobile application will allow you to quickly access your personal account, manage your favorite properties and track your requests, directly exchange messages with sellers and buyers.
Regional differences
Budapest is not alone in facing high property prices. Győr, Debrecen and Székesfehérvár are also among the cities with the highest rents among county seats. At the same time, cities such as Salgótarján offer relatively affordable rental housing. Such regional differences indicate uneven distribution and price growth, which primarily depends on the level of economic development and demand for housing in each region. It is worth noting that the growth in real estate prices is observed not only in large cities, but also in popular tourist destinations such as Lake Balaton and thermal spas. Many foreign investors purchase real estate in these regions for the purpose of renting out or using it as a second home.
Impact on the real estate market
The growth in real estate prices in Hungary was observed not only in the rental segment, but also in sales. At the end of 2024, requests for housing continued to grow, especially for two-bedroom and three-bedroom apartments. This indicates a high degree of interest in acquiring real estate for further use or as investment assets.
Many investors view real estate in Hungary as an attractive asset with the potential for long-term growth in value. Investments in real estate in Budapest are especially popular, where further price growth and high demand for rentals are expected. However, the rise in real estate prices also creates certain problems for the local population. Many Hungarians are finding it increasingly difficult to buy their own home, especially in large cities. This could lead to increased inequality and social tensions in society.
Forecasts and expectations
- Experts predict that the situation on the real estate market will continue to change depending on economic factors and changes in demand. Possible market adjustments may affect price stability, although overall for Hungary, housing price growth remains one of the most pronounced in Europe.
- Demand for real estate in Budapest and other major cities is expected to remain high, especially from foreign investors. However, price growth may slow down due to an increase in the supply of new properties and a possible increase in mortgage interest rates.
- At the same time, government programs to support housing construction and mortgage subsidies may help to increase the affordability of housing for the population. This may lead to some decrease in real estate prices in certain market segments.
- The rental market is also expected to continue to develop, especially in Budapest and other major cities. However, rent growth may slow down due to an increase in the supply of rental housing and a possible decrease in demand from foreign students and expats due to the COVID-19 pandemic.
In conclusion:
The record rise in property prices in Hungary has had a significant impact on the housing market and rents. Budapest and other major cities have seen particularly high prices, which poses certain difficulties for the local population. Factors contributing to the price increases include rising living standards, increased real estate investment, low mortgage interest rates and a limited supply of new properties. Regional differences in property prices reflect uneven economic development and demand for housing in different parts of the country.
The forecasts for the current year suggest that the situation on the property market will continue to change depending on economic factors and changes in demand. Possible market adjustments may affect price stability, although overall for Hungary, the rise in house prices remains one of the most pronounced in Europe. In the long term, the Hungarian property market will depend on the overall economic situation in the country and the development of housing policy. It is important that the state takes measures to ensure housing affordability for the population and prevent excessive growth in property prices.
16
41.51 
1 
1 
1 
2 
20
2
4
Ho Chi Minh City, Vietnam's largest city, has temporarily banned short-term rentals in apartment buildings. The decision has sparked mixed reactions among locals, investors, and market participants. In this article, we look at the reasons for the ban, its impact on the rental market, and possible solutions that take into account the interests of all parties.
Albania is introducing strict controls on income from short-term rental properties. The new rules include mandatory licensing, registration with tax authorities and strict reporting. Online platforms are required to share data on landlords' income. Violators face large fines and legal problems. The key to success is compliance with the rules, quality service and following market trends.
Italy is introducing new restrictions on citizenship by descent, including additional documentation requirements and proof of origin. These changes reflect a global trend towards tightening immigration policies and could significantly affect the legalization process for descendants of Italian emigrants. In this article, we will take a closer look at the essence of the reform and the possible consequences of the innovations.
