Significant recovery expected on the property market

According to Dávid Valkó, lead analyst at OTP Ingatlanpont, transactions are expected to increase by a quarter this year. The number of sales is expected to rise from around 100,000 in the previous year to 130,000 transactions. Demand could continue to recover in 2025.

According to the Central Statistical Office (KSH), the housing market grew by 36% in the first quarter of this year and by 20% in the second quarter compared to the previous year. Valkó forecasts a nominal increase in house prices of 8-10% this year. In Budapest, 6,500 new condominiums will be handed over. The volume of housing loans could more than double by the end of 2024, up from 600 billion forints (approx. 1.6 billion euros) last year.

Rising demand pushes up prices

Zsuzsa Lipták, Managing Director of the property portal zenga.hu, reports a sharp increase in the number of users. Every month, more than 1,000 people access the website, which has over 150,000 property adverts. The number of enquiries rose by 35% between January and September compared to 2023. On a national level, the average price per square metre increased by 14% between December 2023 and September 2024 in Budapest (to 1.2 million forints) and by 6% in rural areas (to 550,000 forints). The average rent for flats across the country averages 250,000 forints, in Budapest it is 290,000 forints. In Debrecen it is 275,000 forints per month, in Győr 215,000 forints, while the average rent in Miskolc is only half as high.