In Q2 2025, average housing prices in Hungary rose by 17.9% year-on-year and 5.1% quarter-on-quarter according to the aggregate index of the National Bank of Hungary. In Budapest, the increase was 23.1% year-on-year and 6.3% quarter-on-quarter, in cities outside the capital – 18.7% year-on-year and 5.9% quarter-on-quarter, in rural areas – 10.7% year-on-year and 2.8% quarter-on-quarter, according to the latest issue of the MNB House Price Index for Q2.
According to Eurostat, in Q2 2025, the aggregate housing price index in the EU rose by 5.4% y/y and 1.6% q/q, indicating that Hungary is outperforming the European average. At the same time, the number of housing transactions in Hungary fell by 5.7%, indicating rising prices amid declining activity.
In Q1 2025, the MNB recorded double-digit price growth both nationally and in the capital, against the backdrop of a revival in mortgage lending and a number of subsidized programs.
The acceleration of prices in the second quarter in the capital and major cities, accompanied by a decline in transactions, points to a market where demand is mainly sustained by improvements in real household incomes and supportive measures, as well as a shift in supply from short-term rentals to long-term formats amid increasing regulation, especially in Budapest.
The baseline scenario for Q4 2025 is a slowdown in growth to 3-4% q-o-q nationwide and 4-5% q-o-q in Budapest amid seasonality and partial profit-taking. A more moderate trajectory is expected for 2026: 6–9% y-o-y nationwide and 8–11% y-o-y in the capital, provided that support programs and stable rates are maintained. Risks of a slowdown include a possible tightening of mortgage conditions and a slowdown in real incomes; risks of acceleration include the expansion of subsidized mortgages and additional restrictions on short-term rentals in tourist areas. The assessment is based on the dynamics of the MNB index, Eurostat statistics on transactions, and reports from the regulator on income support policy.
