Purchase and sale market. In the first three months of 2024, both supply and demand for residential real estate across Hungary saw an increase. Compared to the same period in 2023, the market experienced a 16% annual rise. In March 2024, there were 8% more apartments offered for sale than in March 2023.
The number of properties purchased with mortgage loans also saw a significant increase: banks issued 80% more mortgages in Q1 2024 than in the same quarter of 2023. This surge was prompted by the Hungarian National Bank’s decision to lower the base rate in January 2023, leading banks to reduce loan rates to below 6%.
Rental market. The decline in property rental prices seen in 2023 reversed with a surge in January 2024. The national average rental price rose by 1.5% compared to last December. On an annual basis, it increased by 13%. Compared to 2015 levels, adjusted for inflation, the 2024 rental price index was 25% higher.
In February, the average rental price in Budapest was HUF 250,000, or €642, per month. In other major cities such as Debrecen, prices exceeded HUF 200,000, or €512. Cities offering more budget-friendly rental options include Miskolc, Salgótarján, and Békéscsaba, with the average monthly rent of HUF 90,000—100,000, or €228 — 253.
Real estate in Budapest. Demand for real estate in Budapest increased by 16% in March 2024. However, fewer homes were available for sale during this period.
Purchase prices in the capital saw significant growth, with the average price per square metre for a brick apartment reaching the threshold of HUF 1 million, or €2,533. Property prices per square metre vary across different districts of the capital, ranging from HUF 558,000 (€1,403) to HUF 1.3 million (€3,270).
Real estate across the country. The real estate market saw rises in all regions of Hungary during Q1 2024. The leading region in terms of demand for residential property was Csongrád-Csanád county with a 50% increase. The biggest supply, however, was in Nógrád, Jász-Nagykun-Szolnok, and Vas.
The Lake Balaton region, benefiting from several development projects started two or three years ago, saw a 10—20% increase in properties offered for sale compared to the same period last year. In real terms, however, property prices have fallen.
Experts anticipate a significant increase in market activity in 2024, with expected rise of 15—20%. Demand is likely to grow further due to the Golden Visa program, introduced earlier this year and set to begin operation in the summer.
Foreign investors in Hungarian real estate will be eligible for residency in the country. To qualify, they need to purchase residential property valued at least €500,000. The permit is granted for 10 years with an opportunity of renewal and can be extended to the investor’s spouse and children under 18. To maintain residency, permit holders are not obliged to move to Hungary; the primary requirement is to hold property for 5 years.