Budapest, 2 December 2025 – The first nine months of this year were characterised by a significant increase in house prices. The difference between house prices and the level justified by fundamentals rose to around 19 per cent on average nationwide in the second quarter. Following the announcement of the Home Start Programme, demand in the housing market increased significantly in August, which was also reflected in a sharp rise in the number of sales transactions in September. The affordability of house purchases has improved significantly for those eligible for the Home Start Programme. However, without a substantial and rapid adjustment in housing supply, rising demand will result in further increases in house prices.
In 2025 H1, both favourable macroeconomic fundamentals and savings flowing in from the government securities market helped push housing market demand 5 per cent above the level of the same period last year. As a result of the Home Start Programme, demand for residential properties for sale increased by 46 per cent in August 2025 compared to the previous year, followed by a dynamic 37-per-cent year-on-year increase in completed transactions in September.
Compared to other European Union countries, nominal house prices grew the most in Hungary year-on-year. In 2025 Q2, house prices rose by an average of 17.9 per cent year-on-year nationwide, resulting in an 18.8-per-cent deviation of house prices from the level justified by fundamentals. Based on preliminary data, the annual growth rate of house prices continued to accelerate, reaching 23.9 per cent nationwide and 29.9 per cent in Budapest in 2025 Q3.
In 2025 H1, the volume of housing loan contracts concluded increased by 26 per cent, while the number of contracts increased by only 8 per cent compared to the previous year, meaning that the growth in the volume of new disbursements was mainly due to contract sizes increasing in parallel with rising house prices. From September onwards, the affordability of house purchases has improved significantly for borrowers eligible for the Home Start Programme. However, without a substantial and rapid adjustment in housing supply, rising demand will result in further increases in house prices; therefore, the initial improvement in affordability may be temporary.
While the supply of new homes for sale in 2025 was characterised by a low number of completions, the number of flats in condominium construction projects started in Budapest more than tripled in the first half of the year compared to the previous year. The number of building permits issued also rose significantly, but this may have been influenced by applications brought forward due to stricter building regulations coming into force in July 2025. The average price per square metre of new homes in the capital rose to HUF 1.77 million by 2025 Q3, following 15-per-cent annual price growth.
https://www.mnb.hu/en/publications/reports/housing-market-report