Budapest continues to pull away

As the director of the Hungarian National Bank (MNB), Sándor Winkler, announced at a press conference, the favourable macroeconomic conditions are driving the housing market. The positive factors include high employment, double-digit wage growth, rising real incomes and a gradual improvement in consumer confidence. At 31%, the largest price increase was recorded in Budapest. The annual growth in property prices accelerated from 9% in the second quarter to 13% in the third quarter nationwide and to almost 15% in Budapest. At the same time, the degree of property overvaluation on the housing market fell significantly from 23% in Q2 2023 to just 11.2% in Q2 2024.

Between January and August of this year, the number of housing loans rose remarkably: the number of loans concluded increased by almost 50% and the volume by almost 150%. The average loan amount for the purchase of existing properties rose from HUF 13 million in the previous year to HUF 18.5 million (just over EUR 45,000) in August.

The average price per square metre for new-build flats in the capital reached HUF 1.53 million (around EUR 3,750) in the third quarter, an annual increase of just under 5%. Between January and August, around 7,400 contracts with a total value of 192 billion forints were signed as part of the CSOK+ development programme, with 80% of the contracts relating to the purchase of old properties.