The annual nominal growth rate of house prices reached 23.5 per cent nationwide in 2025, with house prices consequently rising by 19.0 per cent in real terms, marking the highest real house price appreciation in the past 25 years. Due to the dynamic increase in prices, house prices nationwide exceeded the level justified by fundamentals by 22.5 per cent in 2025 Q4, representing an increase of 8.8 percentage points compared to the same period of the previous year.
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 (HSP) in September of last year reshaped the composition 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 launch of the HSP, and investors became predominant on the seller side of the market. Following the increase in turnover observed with the launch of the HSP, buyers for investment purposes became more cautious due to low rental yields and rising overvaluation.
In 2025 Q4, the volume of housing loan contracts concluded increased by 130 per cent year on year. 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 rose from 23 per cent to 81 per cent by 2026 Q1. Due to the strong uptake of the Home Start 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. 90 per cent of Home Start loans finance the purchase of pre-owned homes, and households have taken out an average loan amount of HUF 35 million under the programme. 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. Launched in September 2025, the programme materially improved home affordability for eligible applicants; at the same time, it also contributed to the increase in house prices.
In 2025, 12,000 newly built residential properties were issued occupancy permits in Hungary, down 8 per cent on 2024; 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 result in a significant expansion of supply in the coming years, primarily in Budapest and in cities with county rights. In 2026 Q1, the number of newly completed homes grew 4 per cent year on year, while the number of building permits issued rose by 64 per cent. Based on our short-term forecast, 15,700 homes are expected to be completed in 2026, which would represent growth of 30 -per-cent year on year.
In 2026 Q1, the development and sale of 22,000 homes was underway in Budapest, representing a 46-per-cent increase year on year and the highest level of supply in the past ten years. As a result, 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 units 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 commenced. Of the 31 designated priority residential property investment projects identified by mid-April, 22 of which are in Budapest, a total of four HSP priority projects were on sale at the end of the first quarter, comprising approximately 1,200 homes. In the capital’s supply of new homes, the share of homes eligible for the Home Start Programme has been steadily declining due to continued price increases for new homes, with average prices reaching HUF 1.85 million per square metre by the end of March.