immoportal-ungarn.com · Market analysis 2026/2027

Market analysis · Property in Hungary

Hungary Property Market 2026/2027: Correction in Budapest, Stability in the West

22 September 2026René Unger, HUN 360 INGATLANReading time approx. 5 min

After the price escalation of 2025, Hungary's residential property market is realigning. Home prices rose 24% nationwide in the third quarter of 2025, followed by a correction in the first quarter of 2026. Budapest, Western Transdanubia and the other regional centres are developing very differently.

From boom to correction

The 2025 boom was driven mainly by two factors: private investors reinvested capital from maturing high-yield government bonds into residential property, and the state introduced targeted loan subsidies. In Budapest and the major metropolitan areas, prices at times were more than 26% above the previous year, while real wages rose by only 6.1% over the same period.

By mid-2025, prices nationwide were already 18.8% above the level justified by fundamentals. Overvaluation and declining affordability led to a 2.5% drop in nominal prices in Q1 2026 compared with the previous quarter. Year on year, an increase of 8.6% remained.

• Second-hand flats: −2.9% quarter on quarter
• New builds: +3.9% year on year, supported by high material and labour costs

Budapest: a two-tier market

The average price per m² for second-hand flats in the capital is around HUF 1.21–1.40 million/m². New builds were offered at an average of HUF 1.72 million/m².

In the lower and middle segments, the “Otthon Start” programme supports demand: first-time buyers receive state-backed mortgages at a 3.0% fixed rate. At the end of 2025, around 60% of Budapest buyers focused their search on eligible properties, mainly compact flats under 60 m² in well-connected districts. Above HUF 1.5–2.0 million/m², demand thins noticeably because unsubsidised loans carry market rates of 6.6–7.8%.

Western Transdanubia: the most liquid market outside Budapest

The border region comprising Győr-Moson-Sopron, Vas and Zala counties benefits from proximity to Austria and Germany, above-average purchasing power and a dense industrial base.

Győr – Sopron – Mosonmagyaróvár axis

In Győr, prices per m² range from around HUF 970,000 to 1.025 million. The average negotiation margin is only 2.0% because high-quality housing is scarce. Properties find a buyer in under two months on average.

Vas and Szombathely

In Szombathely, asking prices reached almost HUF 800,000/m². After annual gains of over 14% in 2025, asking prices eased slightly in mid-2026 (−1.7% month on month).

Forecast for Western Transdanubia 2026/2027

• Cooling: According to the MNB, prices in Q2 2026 fell by 0.6% in towns and by 2.8% in villages compared with the previous quarter. For Győr, Sopron and Szombathely we expect sideways movement up to approx. +4% a year in 2026/27, and stagnation to slight declines in rural locations (own assessment, see Western Hungary 2026).
• Stable demand for renovated and new property: High equity among local buyers keeps demand stable for energy-efficient renovated homes and new builds.
• Rental market: The influx of skilled workers keeps rental demand high in Győr and Sopron. Gross rental yields are around 5.5–6.2%, above Budapest.

Other regional centres

• Debrecen: Major investments in the automotive and battery sectors (including BMW) make it the most expensive provincial city at approx. HUF 1.25 million/m² (+7.3%).
• Szeged: With BYD's arrival, prices rose 18.5% to approx. HUF 1.00 million/m².
• Pécs: Recovery to almost HUF 998,000/m² (+21.8%).
• Miskolc: At approx. HUF 509,000/m² (+0.8%), one of the lowest price levels.

Prices per m² at a glance

Sources: KSH, MNB, Duna House, Ingatlan.com. * Budapest: change in average price per m² of second-hand flats, Q1 2026 vs. Q1 2025 (KSH, Lakáspiaci árak, lakásárindex, 2026. I. negyedév).