The real estate market in Hungary is experiencing a noticeable increase in prices compared to the first quarter of the year. The average price per square meter in Budapest remains steadily above 1 million forints (2,534 euros). Additionally, rental prices in the capital have increased by a significant 15 percent compared to the previous year. Data from rental platforms indicate that further increases are expected as lease agreements expire in the summer.
According to Infostart, the purchase of real estate in Hungary has become more expensive, with annual price growth rates rising from 1.6 percent in January to 6.4 percent in July. ingatlan.com data shows that the most significant price increases were observed in Eastern Hungary, including cities like Szeged and Debrecen, where housing prices rose by 8.1–8.3 percent compared to the previous year. Conversely, the Pest County saw the slowest growth, with prices increasing by approximately 3 percent.
Laszlo Balog, the chief economic expert at ingatlan.com, noted that the average price of Hungarian real estate per square meter in Budapest in July was 1.02 million forints (2,585 euros). He added that while some areas of the capital are relatively affordable, others require significantly higher budgets.
In districts VIII, XI, XIII, and XIV, Hungarian property prices range from 970,000 to 2.457 million forints (2,585 to 6,700 euros) per square meter. However, in the most expensive district, V, the average price per square meter is approximately 1.773 million forints (4,560 euros). For comparison, in district XXIII, the cost per square meter of property is less than 700,000 forints (1,800 euros).
Among other major cities, Debrecen is the most expensive, with an average price of 815,000 forints (2,065 euros) per square meter. In Eger and Veszprem, average prices for Hungarian real estate range from 1,984 to 441,000 forints (1,117 to 1,760 euros). Conversely, in Kaposvar, Szolnok, Miskolc, and Bekescsaba, average prices range from 300,000 to 760,000 forints (760 to 1,213 euros). In Szalgotarjan, prices per square meter in July were below 200,000 forints (500 euros).
Laszlo Balog highlighted that the rise in property prices in the Hungarian real estate market has prompted those planning to buy a home to enter the market rather than wait, leading to increased demand. Indeed, July showed very positive results in terms of the number of people looking for property on ingatlan.com.
As summer comes to an end, many annual lease agreements are set to expire, often resulting in rent increases upon renewal. Meanwhile, demand in the rental market typically significantly increases as students flock to the capital in September. According to DNH research, changes in the Hungarian rental market began in many cities after university admissions results were announced in early July.
In Budapest, landlords were asking an average of 239,000 forints (605 euros) per month in June, but by July, tenants had to shell out 621,200 forints (507 euros). Overall, the price increase last month had varying effects on apartment prices in Budapest. The highest rent increase was below 15,200 forints (350 euros), with some of them being up to 507 percent more expensive than last year. For comparison, the monthly cost of renting apartments ranging from 887 to 10,000 forints (2 to 25 euros) increased by less than 10 percent.
However, according to the rentingo.com social rental platform, there was a slight change in the amount of money offered by landlords for apartments. After four months of steady decline, the average amount they were willing to pay increased to 219,000 forints (555 euros) in July from 547 forints (12 euros) in the previous month. However, this increase is significantly lower than the rental price changes, indicating that, as noted by Index, the gap between supply and demand has widened to 10 percent.
In Laszlo Balog’s opinion, the rapid rise in housing prices and high demand for rental apartments in the Hungarian real estate market may attract investors back to the market in the future. This could not only provide a short-term boost to the sector but, as he emphasized, „the return of investors may also restore developers‘ confidence in housing, which could further stimulate the market and contribute to long-term economic growth.“
In conclusion, the Hungarian real estate market is experiencing significant price increases, both in property sales and rentals. The current trends indicate a growing demand for housing, especially in Budapest, leading to a competitive market environment. As the market continues to evolve, it will be interesting to see how investors, developers, and buyers navigate these changing dynamics to capitalize on opportunities in the Hungarian real estate sector.