Hungarian Real Estate Market News and Prospects for 2025

The Hungarian real estate market in 2024 is demonstrating active development, driven by growing demand, increased investment activity, and government support. Experts anticipate that these positive trends will continue into 2025, with significant growth expected in both the number of transactions and property prices. Let’s examine the key factors shaping the current situation and the forecasts for the near future.
Current Situation in the Hungarian Real Estate Market
The Hungarian real estate market in 2024 is showing confident growth following a downturn caused by economic challenges in 2023. According to analysts, the number of transactions may reach 130,000 by the end of 2024, a 30% increase compared to 2023, which saw approximately 100,000 transactions. In January 2024 alone, the volume of transactions grew by 43% compared to the same period the previous year, while the issuance of mortgage loans increased by 80%. These figures indicate rising interest from buyers, both local and foreign.
Steady demand growth creates favorable conditions for further market activity, particularly in major cities such as Budapest, as well as in regions around Lake Balaton, which remain attractive to international buyers.
Government Support and Its Role
Government initiatives play a crucial role in the development of the real estate market. One of the key drivers has been the reform of the pension system proposed by the government in October 2024. Under the new rules, citizens can use their pension savings for real estate purchases without tax deductions. This measure is aimed at stimulating the housing sector and boosting the economy ahead of the 2026 parliamentary elections.
Hungarian Prime Minister Viktor Orbán highlighted that these changes are expected to significantly accelerate economic growth in the first half of 2025, a critical factor amid ongoing inflation and global market instability.
The new policy is anticipated to bring additional funds into the real estate market. Analysts estimate that around 300 billion HUF (approximately $817.5 million) will be directed toward housing purchases through pension savings. This is likely to create additional demand and drive price growth in the market.
Forecasts for 2025
Experts predict the continuation of positive trends in 2025. Key factors expected to influence the market include:
1. Increased Investment in Real Estate: The expiration of one of Hungary’s popular government bonds is expected to redirect significant capital into the real estate market. Approximately 20% of these funds, or over 1.3 trillion HUF (around €3.2 billion), are projected to flow into property purchases, creating further incentives for market growth.
2. Rising Property Prices: The use of pension savings for housing purchases, combined with growing demand, could lead to a 10–15% increase in property prices. The largest price hikes are expected in major cities like Budapest and popular tourist regions.
3. Interest from Foreign Investors: Hungary continues to be an attractive market for international buyers due to its relatively low property prices compared to Western Europe and favorable investment conditions. The planned launch of a “golden visa” program in 2025 is likely to attract even more foreign investors.
4. Expected Construction Boom: A rise in new development projects, particularly in the residential sector, is forecast for 2025. Government programs supporting construction and the modernization of old properties will also play a key role in the sector’s growth.
Rental Market and Its Prospects
The rental housing segment in Hungary is also showing steady growth. In 2024, rental prices increased by an average of 1–2% per month, driven by high demand and limited supply. In 2025, further rental price growth is anticipated, particularly in the capital and major cities, where demand remains strong among students, tourists, and labor migrants.
Impact of Global Factors
Global economic trends, such as rising interest rates and inflation, are also influencing the Hungarian real estate market. However, thanks to government support measures and high levels of investment, the market remains resilient. The increasing number of transactions and rising demand indicate the sector’s stability despite external challenges.
Conclusion
The Hungarian real estate market in 2024 is demonstrating positive trends that are likely to continue into 2025. Growing demand, stimulated by both government initiatives and rising interest from foreign investors, creates favorable conditions for further sector development. Despite potential challenges such as inflation and higher interest rates, the real estate market remains a key driver of economic growth in the country.
In 2025, significant increases in investment activity are expected, which in turn will drive property prices higher and lead to a greater number of transactions. Government programs aimed at supporting buyers and developers will continue to stimulate the market, making it attractive to both local and foreign participants.