According to Open4business, Budapest’s residential real estate market began showing signs of cooling off following Hungary’s parliamentary elections: in April 2026, the capital’s housing price index fell by 0.1% after rising by 1.1% in March. This marked the first monthly price decline in Budapest in about a year and a half, according to Hungarian real estate market data.
The decline appears moderate so far, but it has sent an important signal to the market, which in recent years has remained one of the most expensive and overheated in Central Europe. Annual price growth in Budapest slowed from 13.7% to 10.9% and, according to market participants, could fall below 10% for the first time since November 2024.
The market cooling comes amid a sharp political shift in Hungary. In April, Péter Mádár’s Tisza party defeated Viktor Orbán’s Fidesz, ending his 16-year rule. The new government was sworn in on May 12, and Tisza secured two-thirds of the seats in parliament—141 out of 199. Fidesz holds 52 seats following the election.
A direct link between Orbán’s defeat and the decline in housing prices has not been proven, but political uncertainty and expectations of a shift in economic policy may have increased caution among buyers and investors. The new government has stated its intention to restore predictability in economic policy, reduce the budget deficit, step up the fight against corruption, and secure the release of frozen EU funds.
An additional factor weighing on investment sentiment may be the situation surrounding the assets of business groups linked to the former government. The Guardian reported that following Orbán’s defeat, some influential figures close to Fidesz began transferring assets abroad, particularly to countries in the Middle East, the U.S., Australia, and Singapore. Péter Magyar also publicly stated that businesspeople linked to Orbán are attempting to move tens of billions of forints out of the country.
For the real estate market, this could mean a decline in activity in the high-end price segment, where wealthy investors and buyers linked to domestic capital have played a significant role. If some of these players are indeed withdrawing funds from Hungary or adopting a wait-and-see approach, this could reduce demand for expensive apartments and houses in Budapest.
At the same time, the fundamental reasons for high housing costs in the Hungarian capital remain. Supply remains limited, and new housing construction is proceeding slowly.
