Overview of real estate market performance

Increasing Investor Activity and Persistent Homebuilders Defined the Quarter in the Domestic Real Estate Market

The domestic real estate market closed the year with momentum in 2024, with 10,231 transactions in December, according to Duna House estimates. Although this is down 9 percent from the previous month, it still shows a strong performance, up 31 percent compared to December 2023. Buyer demand in December was down 30 percent from November, in line with the time of year, but still produced the strongest December ever.

The 2025 Forecast

Duna House forecasts that buyer interest will continue, which could lead to a 10-20 percent increase in both transaction numbers and prices in the real estate market. Credipass estimates that the mortgage market saw 105 billion forints of contracted residential mortgages in December, a 66 percent improvement compared to 2023. Home purchase subsidies, including CSOK Plus, accounted for 25 percent of the total annual volume, with their national popularity rising to 19.4 percent.

• The mortgage market closed the year with more than 1,300 billion forints, 123 percent stronger than the 2023 results, according to MNB and Credipass data.
• Movements in house prices were also influenced by strong buyer demand, with a significant impact on prices per square metre across the country.
• Duna House's national house price index closed at 311 points, up 6 points in real terms.

Regional Differences and Investor Preferences

Higher price increases were recorded in Eastern Hungary, while Western Hungary saw smaller price increases. Deal sellers in the east cut their prices by 6-8 percent, while in the west they dropped by 3-6 percent. In the capital, price increases were milder, with bargains allowing 2-4 percent.

• District XIII was the most sought after, with interest in new-build properties remaining high.
• 44 percent of transactions were for investment purposes, with 30 percent in rural areas.

Clients of the real estate broker who bought for investment purposes spent an average of more than HUF 68 million, while first-time home buyers spent HUF 50.3 million. Rural investors spent an average of 34.2 million forints on the real estate market.

Three Interesting Data

• Duna House recorded its strongest December buyer demand ever in 2024
.
• Seven of the price indices reached all-time highs in the last quarter of 2024.
• The share of investors in the capital reached a record 44 percent this year.

Source: mmonline.hu