The Hungarian real estate market remains one of the hottest in Central Europe in 2026. Despite a slowdown in prices in Budapest, many regions of the country are seeing double-digit growth in housing prices, and government programs and a shortage of new construction continue to fuel high demand. Learn more about where apartment prices are rising the fastest, how much housing costs in different cities across Hungary, and what to expect from the market going forward

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Despite the economic slowdown in Europe, the housing market in Hungary continues to surprise with its growth rates. Over the past year, apartment prices in the country have risen by more than 14%, and in some regions by nearly 20%. Budapest remains the most expensive city, but it is the regions that are now becoming the main drivers of the market. This is due to lower prices, government incentive programs, and the migration of buyers from the overcrowded capital.

At the same time, the number of new construction projects in Hungary is declining, which only exacerbates the housing shortage and upward pressure on prices. Analysts are also noting a strong return of investors who are once again investing in apartments for rent.

In the previous article, we reported on the most expensive cities in the world to live in in 2026, according to Numbeo.

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What is currently happening with the housing market in Hungary?

The real estate market in Hungary continues to grow even after several years of rapid price increases. According to the Hungarian portal ingatlan.com, in April 2026, average housing prices in the country were 14.3% higher than a year earlier. At the same time, in just one month, the cost of apartments and houses rose by another 0.8%.

Analysts note that after a very active first quarter, the market began to gradually slow down, but it is too early to speak of a decline. Demand remains high due to several factors:

- A shortage of new housing;

- Active investment demand;

- Government support programs;

- High rental prices;

- Migration of buyers from Budapest to the regions.

A particularly noticeable trend in 2026 has been the shift in activity from the capital to major regional centers and suburbs. While Budapest used to be the main driver of price growth, apartments in Pest County, Debrecen, Szeged, and other cities are now becoming more expensive at an increasingly rapid pace.

Experts also point to the government’s Otthon Start program, which provides subsidized financing for home purchases. It is this program that is partially sustaining demand despite high prices and economic instability in Europe.

In our previous article, we discussed what to look for before buying an apartment in Poland and how to avoid common mistakes.

Why has real estate in Budapest suddenly stopped rising in price?

After several years of nearly uninterrupted growth, the Budapest housing market began showing signs of cooling for the first time in 2026. According to ingatlan.com, average prices in the capital even fell by 0.1% in April compared to March. This was a significant signal for the Hungarian market, as Budapest had long been the main hub of rising real estate prices.

One of the reasons was the excessively high cost of apartments. In popular areas of the capital, the price per square meter already exceeds 1.6 million forints, making housing increasingly unaffordable even for the middle class. The situation has become particularly difficult for young families and buyers with mortgages.

The government’s Otthon Start preferential lending program had an additional impact. It sets a limit—housing costing more than 1.5 million forints per square meter does not qualify for preferential financing terms.

As a result, some buyers have begun to turn away from apartments in central Budapest and look for cheaper alternatives.

This has had the greatest impact on:

- Budapest’s 13th District;

- the 11th District;

- central districts on the Pest side;

- popular investment neighborhoods with a large number of Airbnbs.

Analysts also note a psychological factor. After several years of record growth, many buyers expect prices to stabilize or even fall slightly, so they are postponing deals. This is particularly noticeable among investors who previously actively purchased apartments for rent.

At the same time, the cooling of the capital does not mean a general market decline. On the contrary—demand has begun to shift more actively to the suburbs of Budapest and major regional cities, where housing is still significantly cheaper. That is why the Pest district has now become one of the leaders in terms of price growth rates in Hungary.

We previously reported that the Greek real estate market is shifting toward compact housing, which is showing faster growth in prices and demand.

Where will housing prices rise the most in Hungary in 2026?

While the Budapest market is showing the first signs of a slowdown, Hungary’s regions are experiencing a real price boom. It is precisely the provincial cities and the capital’s suburbs that have now become the main drivers of the real estate market.

Housing prices are rising fastest in areas where buyers can find more affordable apartments while still maintaining access to major cities, jobs, and transportation infrastructure. This is particularly noticeable around Budapest, where many residents are moving en masse to the suburbs due to excessively high prices in the capital.

Prices rose the most over the year in the following regions:

- Pest County – +18%;

- Central Transdanubia – +15.5%;

- Southern Alföld – +15.3%;

- Northern Alföld – +15.2%.

Pest County has become the absolute leader in growth. This is the area around Budapest where new residential complexes and private homes are being actively built. For many families, this represents a compromise between living near the capital and significantly lower real estate prices.

Another important trend is the rapid development of major university and industrial centers. For example, Debrecen has been actively attracting international investment in recent years, particularly in the automotive and manufacturing sectors. As a result, demand is growing not only for rentals but also for apartment purchases.

Analysts attribute this regional growth to several factors:

- Buyers are seeking cheaper alternatives to Budapest;

- Investors are increasingly investing in regional real estate;

- Industry is actively developing in many cities;

- Government programs are incentivizing home purchases;

- New construction is still insufficient to meet demand.

At the same time, the difference between regions remains enormous. While a square meter in the most popular areas of Budapest already costs over 1.6 million forints, prices in less developed cities can be 4–5 times lower. This is precisely why more and more investors are now turning their attention not to the capital, but to secondary cities with growth potential.

In our previous article, we reported that Spain has been named the best country for real estate investment in Europe for the first time.

How much do apartments cost in Budapest and other cities right now?

In 2026, Hungary remains one of the most expensive countries in Central Europe in terms of real estate price growth. This is particularly noticeable in Budapest, where housing costs are already approaching the levels of some Western European cities.

The most expensive districts of the capital remain Districts XI and XIII. This is where the majority of new developments, modern residential complexes, and apartments for investors are concentrated.

Average prices in popular cities and districts currently look like this:

- District XI of Budapest – approximately 1.67 million forints per m²;

- District XIII of Budapest – approximately 1.65 million forints;

- Debrecen – over 1.11 million forints;

- Szeged – about 1 million forints;

- Győr – approximately 976,000 forints;

- Pécs – about 958,000 forints;

- Szalagótarján – just 319,000 forints per m².

The price difference between the country’s most expensive and cheapest cities is already more than fivefold. For example, the cost of a small apartment in central Budapest could buy an entire house in some regions.

Debrecen—the country’s second-largest city—deserves special mention. It is here that one of Hungary’s most active real estate markets is currently taking shape. This is due to significant international investment in industry, new jobs, and high demand for rentals among workers and students.

At the same time, the most affordable housing remains in the less economically active cities of the north and east of the country. That is why more and more Hungarians are moving from expensive Budapest to regions where the ratio of wages to housing costs looks more attractive.

Analysts also note that the rental market in Hungary remains very active. In central areas of Budapest, the vacancy rate for apartments is only about 1–2%, and well-located apartments are often rented out within 1–2 weeks.

For foreigners, Hungary still appears to be a cheaper alternative to many Western European countries. However, over the past 10 years, housing prices in the country have risen by approximately 260%, making the Hungarian market one of the most dynamic in the EU.

We previously reported that housing prices in the EU have risen by 65% over 10 years.

Why is housing in Hungary becoming more expensive even amid the crisis in Europe?

Despite the economic slowdown in the EU and high interest rates, Hungary’s real estate market continues to grow. Analysts attribute this to the fact that the country is simultaneously facing a housing shortage, strong investment demand, and large-scale government programs supporting homebuyers.

One of the main reasons was a sharp decline in residential construction. Over the past two years, the number of new projects in Hungary has dropped significantly due to high inflation, expensive building materials, and rising borrowing costs for developers.

According to Hungarian industry publications, the number of housing units completed in 2024 approached a decade-low. In Budapest, the number of new apartments fell by approximately 28% compared to the previous year.

Amid a shortage of new construction, demand remains high. The following groups are particularly active in purchasing housing:

- Investors;

- Young families;

- Buyers moving from Budapest to the regions;

- Foreigners seeking a cheaper alternative to Western Europe.

Another important factor is government support. Hungary continues to actively stimulate the housing market through preferential mortgage programs and subsidies for families. These measures helped the market avoid a sharp decline following the inflationary crisis of 2023–2024.

The rental market also has a strong influence. In Budapest, demand for apartments is driven by tourists, students, and foreign workers. The popularity of short-term rentals via Airbnb has also long encouraged investors to snap up housing in the capital’s central districts.

At the same time, experts are already warning of the risks of the market overheating. According to Eurostat, housing prices in Hungary have more than tripled over the past 10 years—one of the highest rates in the European Union.

Analysts also note that the Hungarian market is increasingly dividing into two segments:

1. Expensive major cities with high investment demand;

2. Less developed regions with relatively affordable housing.

This is precisely why, in 2026, regional cities became a new growth driver for the country’s real estate market.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

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