In Q2 2025, average house prices in Hungary increased by 17.9 per cent p-p and 5.1 per cent q-o-q according to the aggregate index of the National Bank of Hungary.
In Budapest, the increase was 23.1 per cent p-p and 6.3 per cent q-o-q, in cities outside the capital-18.7 per cent p-p and 5.9 per cent q-o-q, in rural areas-10.7 per cent p-p and 2.8 per cent q-o-q, this follows the latest edition of the MNB House Price Index for Q2.
According to Eurostat, the aggregate EU house price index rose by 5.4 per cent p-r and 1.6 per cent q-o-q in Q2 2025, indicating Hungary’s outperformance relative to the European average. At the same time, the number of housing transactions in Hungary decreased by 5.7%, indicating higher prices with lower activity.
In Q1 2025, MNB recorded double-digit price growth both nationally and in the capital, on the back of a rebound in mortgage lending and a number of subsidised programmes.
The acceleration of prices in Q2 in the capital and major cities, while transactions decline, points to a market where demand is being held up mainly by improving real household incomes and supportive measures, as well as a reallocation of short-term rental supply to long-term formats amid tightening regulation, most notably in Budapest.
The baseline scenario for Q4 2025 is a slowdown to 3-4% q-o-q nationally and 4-5% q-o-q in Budapest amid seasonality and partial profit taking. For 2026, a more moderate trajectory is expected: 6-9% q-o-q nationally and 8-11% q-o-q in the capital, provided support programmes and rate stability remain in place. Downside risks-possible strengthening of mortgage conditions and a slowdown in real incomes; upside risks-expansion of subsidised mortgages and additional restriction on short-term rentals in tourist areas. The assessment is based on MNB index dynamics, Eurostat transaction statistics and regulator’s notifications on income support policies.