Get ready: it's unlikely to be 2025

Get ready: it's unlikely to be 2025

Real estate market situation in Hungary

In 2024, housing prices continued to rise across the country, especially in Budapest, where average prices per square metre are already above one million forints. Prices vary from district to district, and there are also further increases in large rural towns, although to varying degrees from region to region.

Recovery of the property market

The end of the year saw a recovery in the property market, accompanied by a rise in prices. It remains to be seen whether this upward trend can continue for the rest of the year. According to Tamás Sebestyén, an expert at Balla Real Estate, the price rise could continue, depending on the impact of government announcements on the property market.

The challenges of the rental market

  • Rents have also risen, putting pressure on tenants. At current levels, it is questionable whether the rental market can sustain further price increases or whether significant economic growth and real wage increases are needed.
  • Tamás Sebestyén said that the overpricing of the rental market is caused by the fact that many people are unable to rent their homes at the desired price, which also binds the price increase to the buyer's market.

Supply shortage and sellers' exit

There are currently few properties for sale on the market, and the quality of those that do exist is not always good. This further complicates the search for buyers. Sellers often wait, which narrows the supply and drives up prices, especially in sought-after categories.

Renting market in Budapest

  • High prices can also be found in the Budapest rental market, with apartments for rent in the most sought-after districts particularly expensive. Rents have increased month on month and are still high, with levels above the capital's average.
  • Some outlying districts have rents below HUF 200,000, but these are few and far between.

National rents and new developments

Rents have also become more expensive in large rural cities. New government regulations, such as tightening Airbnb, may increase the number of traditional rentals. In addition, employer housing subsidies could help bring prices down.

Buying a home as an investment

Although returns on investment housing have declined in recent years, investors have remained active. Government subsidies and tax breaks could make these investments an attractive option again.

Support

Rising property and rental prices are challenging buyers and renters. However, long-term investment opportunities remain attractive to market players.

Source: index.hu