Budapest, 21 May 2026 – House prices rose by 23.5 per cent on a national average in 2025. The deviation of house prices from the level justified by fundamentals increased significantly and exceeded 20 per cent nationwide in 2025 Q4. The share of first-time home buyers increased as a result of the Home Start Programme, while the presence of investors in the domestic housing market declined in parallel. In 2025, supply in the Budapest new housing market expanded significantly, and looking ahead, the number of newly completed homes nationwide may increase by around 30 per cent in 2026.
The annual nominal growth rate of house prices reached 23.5 per cent nationwide in 2025, resulting in real house price growth of 19.0 per cent – the highest in the past 25 years. Due to the rapid price increases, in 2025 Q4, house prices exceeded the level justified by fundamentals by 22.5 per cent nationwide.
In 2025, private individuals conducted an estimated 152,000 housing market transactions, up 3 per cent on 2024. The number of transactions, however, declined by 18 per cent year on year in 2026 Q1. The launch of the Home Start Programme in September of last year reshaped the structure of housing market turnover: in Budapest, the share of first-time home buyers increased from 25 per cent to 40 per cent in one year, while fewer purchases were made for investment purposes following the programme’s introduction, with investors already forming a majority on the seller side of the market.
In 2025 Q4 and 2026 Q1, the volume of housing loan contracts concluded increased by 130 per cent and 104 per cent year on year, respectively. This strong growth was driven by the impact of the Home Start Programme, as a result of which the share of subsidised loans within housing loans increased from 23 per cent to 81 per cent by 2026 Q1. Due to the strong uptake of the programme, the share of home purchases financed with loans increased to a historically high level of above 60 per cent in 2026 Q1, up from 36 per cent in the period preceding the programme’s introduction. By March 2026, a total of 33,200 loan contracts had been concluded under the Home Start Programme by banks, amounting to approximately HUF 1,161 billion, with 90 per cent of these loans financing the purchase of used homes. The programme materially improved housing affordability for eligible applicants, while, at the same time, it may also have contributed to rising house prices.
In 2025, 12,000 newly built residential properties were issued occupancy permits in Hungary; the last time fewer homes were completed was in 2016. At the same time, the 37-per-cent increase in building permits issued nationwide in 2025 may lead to a significant expansion of supply in the coming years, primarily in Budapest and in cities with county rights. According to our forecast, 15,700 new homes are expected to be completed in 2026, which would represent growth of 30 -per-cent year on year.
In 2026 Q1, the number of homes under development and sale in Budapest increased by 46 per cent year on year, resulting in the highest level of supply in the past ten years. Following a 63-per-cent year-on-year increase, the number of new homes still available for purchase rose to a historical peak of 9,490 flats by March 2026, indicating a substantial expansion of supply relative to demand. On the new housing market, supply may increase significantly due to priority projects linked to the Home Start Programme; however, a large number of these developments have not yet started.
https://www.mnb.hu/en/publications/reports/housing-market-report