Dr. Ivácson Annamária

6 perc olvasás

Hungarian real estate market in 2024

Is Hungary a good place to buy property? Here is what you should know!

Is Hungary a good place to buy property? Here is what you should know!

Based on recent data published by the Hungarian Central Statistics Office, the Hungarian residential real estate market - driven by urban migration and higher demand for living space - is nominally still on the rise:

LocationYearAverage Price* per m2 (€)Increase
Budapest2022 Q12028-
Budapest2023 Q3223710%
National2022 Q11078-
National2023 Q311032%

*used residential real properties

Surprisingly, during the same period the transactions for used apartments in Budapest decreased by approximately 59.58%. ​The deacrease was 60.44% on the national level.

How is this possible? What does this mean for our foreign clients?

Budapest housing market

First of all, let's talk specifics. 

How much does an average apartment in Budapest cost?

  • The average price in the first quarter of 2022 was EUR 118,245.
  • The average price in the third quarter of 2023 was EUR 119,522.

The above indicates a slight increase in the average price of used apartments in Budapest over this period. Contrary to Budapest, there was a decrease in the Pest Region  where average prices across towns and villages, dropped from 95,515.37 EUR to 65,634.90 EUR.

In 2023, my Budapest based colleagues and were surprised to observe an increased proportion of clients who were purchasing properties with cash. This observation is deceptive because, in reality, it was the buyers relying on loans who disappeared due to high mortgage rates. Meanwhile, professional investors found better opportunities in government bonds or stock purchases, so those who came to us were mainly those swapping one residential property for another. As a lawyer, I also notice that sellers in Budapest psychologically cling to high prices - they prefer not to sell even when they need the money, as they feel that they would be losing significantly. For many, a property is a major asset, and they do not want to "squander" it. Similar to the aftermath of the 2008 financial crisis, it took years for sellers to agree to price reductions, and likely, we are seeing similar psychological processes now.

This is not necessarily what the Central Bank of Hungary thinks:

Housing Market Report - November 2023

Subdued activity has driven down asking prices and resulted in greater bargaining potential on the market. The available supply of rental properties has been stagnant year on year. In contrast to house prices, rents continued to rise, but at a lower annual rate of 13 per cent.

Small Budapest apartments can always be utilized

Small Budapest apartments can always be utilized

How much is an apartment in Hungary?

How much does an average apartment cost nationwide?

  • The average price in the first quarter of 2022 was EUR 72,786 
  • The third quarter of 2023 was EUR 67,678.

Contrary to Budapest, this data shows a decrease in the average price of used apartments across Hungary.

When looking at individual regions, we find the following data:

Central Transdanubia (Közép-Dunántúl): Mixed trends; county capitals saw an increase, but overall prices remained stable.

Western Transdanubia (Nyugat-Dunántúl): Increases across all settlement types, especially in county capitals and towns.

Southern Transdanubia (Dél-Dunántúl): A slight increase in county capitals, but a decrease in towns and villages.

Northern Hungary (Észak-Magyarország): Decline in average prices in all areas.

Northern Great Plain (Észak-Alföld): Increase in county capitals, but a decrease elsewhere.

Southern Great Plain (Dél-Alföld): Increase in county capitals, decrease in towns and villages.

I primarily have personal experience with the Budapest real estate market, but colleagues participating in e-ingatlanügyvédek nationwide warn that many sellers are holding off on selling as long as possible. Younger buyers, on the other hand, are hoping that the next change in government will once again precede easily accessible housing support.

Property investment is never easy

Property investment is never easy

Time for a Hungarian residential property investment?

The numbers are suggesting that investing sooner might be more cost-effective as prices may continue to climb. Budapest, as a metropolitan and economic hub, typically sees higher property prices and possibly more speculative investment, which can drive prices up more rapidly compared to other regions.

Given that real estate is a primary asset for many Hungarians, the decision to sell or buy is always very strategic. Owners hold onto their properties longer, anticipating further price increases or using them for rental income, thus reducing the number of properties available for sale. As prices rise, the pool of local individuals who can afford to purchase in these areas naturally shrinks. 

We now see that local sellers and buyers adopt a 'wait and see' approach, leading to fewer sales.

What does it mean for foreign investors?

Here’s how the current dynamics might affect our client's investment strategy:

  1. Long-term Strategic Planning: The current market trend towards fewer sales and increasing prices suggests that real estate should be viewed as a long-term investment. For foreign investors, this means planning for longer holding periods, potentially focusing on income-generating properties, and being prepared for slow yet steady gains.
  2. Early Investment Advantage: The increase in average prices per square meter both in Budapest and nationally suggests a continuing rise in property values. For foreign investors, this means that investing sooner rather than later might lock in better prices before they climb higher. Given the strategic nature of buying and selling in the market, securing properties now could yield significant appreciation in value.
  3. Market Cooling and Opportunities: The substantial decrease in transaction volumes in Budapest and nationally might indicate a cooling period. This could be advantageous for investors as it may lead to less competition for purchasing properties. Sellers in this market might also be more open to negotiations to avoid prolonged listing periods, potentially allowing investors to acquire properties at more favorable terms.
  4. Speculative Risks in Budapest: Budapest, as the economic center, often experiences more speculative investment which can drive prices up more rapidly. While this could mean faster capital appreciation, it also increases the risk of a bubble. Foreign investors should be cautious about speculative investments and perhaps diversify their holdings across different regions of Hungary to mitigate risks.
Looking for a lawyer to help you buy or sell residential property?

Looking for a lawyer to help you buy or sell residential property?

How can we help you?

I you are considering to invest in property in Hungary, we have a wealth of resources and expert legal services to assist you. Our articles provide in-depth insights and practical advice on everything from understanding the costs associated with property transactions to expert legal consultations.

For an overview of the costs of buying property, including property tax and legal fees, read our comprehensive guide: Costs of Buying Property in Hungary - Property Tax, Legal Fee, and More.

If you're a non-resident, our article Buying Property in Hungary as a Foreigner? Here is What You Should Know! covers all the essentials for a smooth property acquisition.

Seeking personalized legal advice in your locality? Our skilled attorneys are at your service:

Why e-ingatlanügyvédek.hu?

As legal experts deeply entrenched in the Hungarian property market, we provide a distinctive perspective that goes beyond mere statistics. Our analysis delves into the legal intricacies of property investment in Hungary, offering an overview of the legislative changes that could impact foreign and domestic investors. We can help you explore the implications of zoning laws and development regulations, which can significantly influence property values and investment decisions. By coupling our legal expertise with our observance of market trends, we equip our clients with a comprehensive toolkit for making informed decisions in the Hungarian real estate landscape.

Contact us today to schedule a consultation and take the first step towards securing your investment with confidence. Let us help you turn legal challenges into opportunities!


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Ivácson AnnamáriaIA


Dr. Ivácson Annamária

[email protected]

Dr. Ivácson Annamária, ügyvéd, az e-ingatlanügyvédek.hu budapesti tagja. Szakterülete az ingatlanjog, a gazdasági jog és külföldi székhelyű vállalkozások magyarországi képviselete. Éveket töltött az Amerikai Egyesült Államokban, így angol nyelven is kitűnően beszél és dolgozik.
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ismételt kérdések

Yes, it is, however, finding such projects nowadays is not easy. The number of construction permits issued between 2022 and 2023 decreased by approximately 38.57%, and there was also a 9.22% reduction in the number of dwellings constructed.