The real estate market of Hungary is full of optimism

Statistics

 In the first quarter of 2024, the demand for real estate in Hungary has increased by 16%. The sellers have become more active as well: according to the business publication Portfolio, by the end of the quarter, there were 8% more properties on the market compared to the same period in 2023 which and represents a 40 % increase compared to 2022.

Experts attribute the positive trend to the reduction in interest rates (banks started offering loans at less than 6% in forints) as well as the resumption of subsidized programs for Hungarian citizens, which stimulated domestic demand.

Budapest

Budapest saw a 16 % increase in demand at the beginning of the year which coincided with the national average – however, after low results in 2023. The surge began in January, with transaction volumes surpassing last year's results by 43%. Simultaneously, the number of listings in Budapest decreased by 8% compared to the previous year.

The significant growth in demand has influenced the prices: property prices in the capital sharply increased since the beginning of the year, the average price per square meter of a brick apartment in the capital surpassed the psychological threshold of HUF 1 million (EUR 2.533).

Forecasts

After several years of stagnation, experts anticipate that the entire year of 2024 will be favorable for the Hungarian market. Leading economic expert from ingtalan.com, László Balog, predicted a 15-20% increase in transaction volume. Part of this optimism is due to the fact that prices outside of Budapest have not yet started to rise actively.

The demand could also be supported by the launch of a new "golden visa" program, which is expected to start in the middle of the year. Under this program, a foreigner investing €500,000 in Hungarian real estate can apply for a 10-year residence permit.