Budapest Set for Record New Housing Supply

Budapest’s new-build housing market is entering a phase of expanding supply that could significantly reshape the city’s residential landscape. According to OTP Mortgage Bank, approximately 9,100 new homes are expected to be delivered in the capital in 2026, followed by another 7,900 units in 2027. Additional projects are already under construction but have not yet been officially launched to the market.

Supply Expansion After Strong Sales in 2025

The current upswing follows a robust 2025, when 8,700 new flats were sold, marking the second-highest annual sales volume since 2017. Developers, supported by three years of favorable market conditions, have increased project launches, leading to a long-absent supply surplus.

Projects currently on the market now hold a similar number of unsold flats awaiting buyers, representing a 43% increase compared to a year earlier. This expansion gives buyers greater choice and signals a structural shift in market balance.

Pricing Trends in Budapest’s New-Build Segment

The average price per square meter for flats scheduled for handover in 2026 slightly exceeds HUF 1.7 million. For projects due in 2027, the average could rise to around HUF 1.83 million per square meter.

Prices vary considerably by district, typically ranging from HUF 1 million to HUF 4 million per square meter depending on location and property quality. Analysts caution that forecasting price trajectories has become more complex due to the growing supply pipeline.

Potential Slowdown in Price Growth

With a substantial increase in available units, the pace of price growth may moderate. While limited supply previously supported strong price increases, 2026 may mark a more balanced phase where developers face greater competition and buyers gain leverage.

Current project announcements suggest that 2026 could break Budapest’s record for new flat availability. The resulting market dynamics will largely depend on effective demand, financing conditions, and broader economic stability.

As experts at International Investment report, the expansion of new housing supply in Budapest reduces overheating risks and could contribute to more sustainable price development. However, future market performance will depend on macroeconomic conditions, interest rate trends, and investor activity in the region.