Hungary’s Housing Price Growth Slows

Hungary’s residential property market is moving into a more moderate phase after the sharp price increases of 2025. Average advertised prices increased by only 0.2% nationwide in July 2026 and 0.3% in Budapest, while annual growth slowed to 10% and 6%, respectively. Zala County moved in the opposite direction, with average listed housing prices 1% below their July 2025 level, the only negative county-level annual reading highlighted in the survey. The distinction is crucial: the number refers to asking prices rather than completed transaction values and therefore does not prove that the entire housing stock in Zala has lost 1% of its market value. Property Forum also highlights a widening regional divide, with annual advertised-price growth in Borsod-Abaúj-Zemplén still above 30%.

Hungary’s housing price growth slows sharply

Average advertised residential prices reached HUF 1.49 million per square metre in Budapest in July and approximately HUF 990,000 nationwide.

Month-on-month increases were limited to 0.3% and 0.2%, respectively.

There is therefore no nationwide fall in advertised prices, but the rate of appreciation has slowed substantially.

Annual growth stood at 6% in Budapest and 10% nationally, one and two percentage points lower, respectively, than a month earlier.

Zenga, which produced the underlying July market analysis, reports that annual price growth slowed further in half of Hungary’s counties. An increasing number of Budapest districts are recording growth below 5%, while no district in the capital registered annual appreciation of 20% or more in July. The company also stresses that changes in the composition of listed properties are affecting regional averages.

Zala becomes the first county to turn negative

The most striking shift occurred in western Hungary.

Average asking prices in Zala County were around 1% lower than a year earlier.

That figure needs to be interpreted carefully.

An asking price is the amount requested by the seller, while a transaction price is the amount ultimately agreed when a sale is completed.

Regional listing averages are also affected by the type of housing available at a particular point in time.

If fewer expensive newly built homes are listed, the average price per square metre can fall without an equivalent decline in like-for-like property values.

This appears to be relevant in Zala, where the number of newly built homes being advertised is somewhat lower than a year earlier.

It is therefore more precise to say that average advertised prices in Zala declined than to claim that all residential property in the county depreciated by 1%.

Borsod remains above 30% annual growth

Borsod-Abaúj-Zemplén represents the other extreme.

Annual advertised-price growth remains above 30%, but the supply mix has also changed.

The share of newly built and generally more expensive properties increased from a very low level a year earlier.

The contrast between Zala and Borsod therefore partly reflects the same statistical mechanism.

A lower share of expensive housing can depress a regional average, while an increasing share can push it higher without comparable changes in like-for-like properties.

For investors, this makes property type, age, condition and local supply structure critical when interpreting county averages.

Official transaction prices also show a cooling market

Hungary’s Central Statistical Office, KSH, provides a more direct measure of completed transactions.

The previous version of this article incorrectly stated that the combined national index had risen 9.2% year on year in the first quarter of 2026. The correct figure is 8.6%.

Compared with the fourth quarter of 2025, the combined nominal housing price index fell 2.5%. In real, inflation-adjusted terms, the quarterly decline was 3%.

The 9.2% figure applies specifically to existing housing, whose annual price growth slowed sharply. New-home prices increased by a much more moderate 3.9% year on year.

KSH had registered approximately 32,500 transactions for the first quarter by the time of publication, 11% fewer than a year earlier. The agency cautions, however, that reporting is incomplete and expects the figure to approach the roughly 36,000 transactions recorded a year earlier once additional data arrives.

For 2025, approximately 146,800 transactions had been registered, with the final total expected to be around 150,000.

Existing-home inflation has fallen rapidly

Existing housing was the main source of price acceleration during 2025.

Annual price growth reached around 25% in the third quarter and 24% in the final quarter.

By the first quarter of 2026, it had slowed to 9.2%.

The deceleration reflects both a quarter-on-quarter decline and the much higher comparison base established in early 2025.

New housing followed a different path. After annual growth peaked at approximately 15% in the third quarter of 2025, the rate slowed to 3.9% by the first quarter of 2026.

KSH notes that prices recorded for newly completed homes often reflect contracts signed one or two years earlier, delaying the impact of current market conditions on the official statistics.

Budapest remains Hungary’s most expensive major market

The slowdown has not removed the large gap between Budapest and most regional markets.

Existing homes sold in Budapest for an average of around HUF 1.2 million per square metre in the first quarter of 2026, while the average property sold for approximately HUF 69 million.

The underlying segments differed substantially.

Average prices were around HUF 0.9 million per square metre for detached houses, HUF 1.2 million for panel apartments and HUF 1.3 million for conventional condominium apartments.

Annual increases also varied, at around 4.9% for houses, 7.8% for conventional apartments and 18% for panel housing.

A single Budapest average therefore conceals increasingly different submarkets.

Zalaegerszeg demonstrates the gap between listings and sales

Zalaegerszeg, the administrative centre of Zala County, provides a useful comparison.

Existing homes sold for an average of approximately HUF 615,000 per square metre in the first quarter of 2026, 16.7% more than a year earlier.

July listing data for Zala County as a whole, however, subsequently showed a negative annual change.

The figures are not contradictory.

They cover different periods, different geographical units and different measures: completed sales in one city versus advertised prices across the county.

The comparison is precisely why the July decline should not yet be described as proof of broad depreciation across Zala’s entire residential market.

Lake Balaton also loses momentum

Hungary’s largest resort market is showing a similar loss of momentum.

The average completed price of existing housing in the Lake Balaton agglomeration was approximately HUF 843,000 per square metre in the first quarter, only 0.3% above the year-earlier level.

In July, advertised prices for newly built housing in counties surrounding the lake fell by around 0.7% to 1.5% from June.

Again, part of the decline reflects the composition of available stock, as more relatively affordable units entered the market.

This does not prove that all new homes around Lake Balaton have been repriced lower.

However, near-zero annual growth in completed existing-home transactions provides stronger evidence that the resort market has lost much of its previous momentum.

Buyers become more cautious after the 2025 surge

The scale of the slowdown is particularly striking when compared with 2025.

Magyar Nemzeti Bank, Hungary’s central bank, estimates that its nationwide nominal house-price index increased by 23.5% in 2025 and by 19% after adjusting for inflation.

This does not directly conflict with KSH’s roughly 20% annual index: the two institutions use different indices and methodologies, so their headline figures are not identical.

Under the central bank’s model, nationwide prices were about 22.5% above levels justified by economic fundamentals by the fourth quarter of 2025.

The MNB estimates that private individuals completed approximately 152,000 transactions in 2025, compared with the roughly 147,000 transactions currently registered by KSH and a final KSH estimate of around 150,000. Differences in methodology and reporting lags explain part of that gap.

Supply is also expanding. Around 22,000 new homes were under development and sale in Budapest in the first quarter of 2026, 46% more than a year earlier. The number of new homes still available reached a record 9,490 after rising 63%, while average new-build prices reached around HUF 1.85 million per square metre by the end of March.

Budapest new-build prices continue to rise

The capital’s primary market is still behaving differently from the broader slowdown.

Average advertised prices for newly built housing increased another 1.3% in July to approximately HUF 1.83 million per square metre.

Nationwide, new homes and houses rose 0.8%.

That does not necessarily mean every Budapest development raised prices by 1.3%.

Some lower-priced projects sold their final units and disappeared from the available stock while newly listed projects entered the market at higher prices.

The changing supply mix can therefore lift the citywide average even without uniform price increases across every development.

Housing inventory continues to expand

A separate sign of cooling comes from the volume of property available for sale.

More than 244,000 telephone enquiries were made for homes advertised for sale across Hungary in July.

That was 14% fewer than a year earlier, although enquiries increased by more than 9% from June.

The annual comparison is distorted by an unusually strong July 2025, when the announcement of Home Start triggered a surge in buyer interest.

Available supply continued to rise.

Buyers could choose from approximately 146,400 homes at the end of July, compared with 145,300 a month earlier and roughly 136,000 a year earlier, an increase of almost 7%.

Nearly 30,000 new listings entered the market during July, around 8% fewer than in June because of normal summer seasonality. Ingatlan.com says demand is currently not absorbing the available stock quickly enough to prevent total supply from expanding.

July transactions decline but mortgage activity stays strong

The July transaction figure also requires careful wording.

The reported 9,292 residential sales are a monthly Duna House estimate rather than final official statistics.

The estimate is 5.8% below June and 2.1% below July 2025.

Similarly, HUF 274 billion is Credipass’s forecast for the expected contractual volume of new housing mortgages in July rather than a final observed figure.

That forecast is 2.9% below June but approximately 93% above the actual July 2025 volume reported by the central bank.

Duna House characterises the monthly decline primarily as normal summer weakness and notes that estimated turnover remains relatively close to its level a year earlier.

One month of estimated transactions therefore does not yet establish a sustained collapse in demand.

Subsidised mortgages continue to support the market

The Home Start programme remains an important source of demand.

By March 2026, banks had concluded approximately 33,200 loans under the scheme with a combined value of about HUF 1.161 trillion.

The average programme loan was approximately HUF 35 million, and about 90% financed purchases of existing homes.

The proportion of purchases involving mortgage credit rose above 60%, compared with around 36% before the programme was introduced.

The central bank describes the programme’s impact as two-sided: it materially improved affordability for eligible buyers but also contributed to higher housing prices.

That continued credit support is one reason a rapid nationwide correction has not emerged despite weaker price momentum.

Budapest building land continues to outperform housing

The market for development plots remains considerably stronger.

Budapest plot prices increased 2.1% in July and 18% year on year.

Settlements around the capital recorded growth of 0.5% for the month and 13% annually.

Nationally, building-plot prices rose 0.5% month on month and 9% year on year.

Lake Balaton again lagged behind. Lakeside building and recreational plots rose only around 5% annually and fell 1.9% from June.

The divergence illustrates why Hungary can no longer be treated as a single residential price cycle.

Budapest development land, capital-city new builds, existing housing in Zala and resort property around Lake Balaton are moving along increasingly different paths.

Hungary moves toward a regional correction

The main development in 2026 is not that Hungarian housing has begun falling everywhere.

It has not.

The more significant change is the disappearance of the broadly synchronised appreciation seen during the hottest phase of the market.

High prices are now meeting expanding supply, buyers have become more selective and performance depends increasingly on the particular location and property segment.

For investors, nationwide averages consequently provide less practical guidance.

A Budapest apartment, a new home around Lake Balaton and an existing house in Zala can now follow very different trajectories within the same quarter.

As International Investment experts report, Zala’s negative advertised-price reading should not yet be treated as the beginning of a nationwide Hungarian housing downturn. The stronger warning comes from the combination of a quarter-on-quarter decline in KSH’s official transaction-based index, sharply slower annual appreciation, rising inventory and the emergence of negative regional listing data. Strong mortgage lending and government-supported finance continue to underpin demand. The critical question is whether household incomes and accessible credit can sustain the price levels established after the 2025 surge. If available supply continues to expand faster than solvent underlying demand, local corrections may spread beyond Zala, particularly in markets with significant investment and resort-property exposure.

FAQ: Hungary property market in 2026

Are house prices falling in Hungary?

Not nationwide in July listing data. Average asking prices increased by 0.2% for the month and remained 10% above their year-earlier level. KSH’s official transaction-based index, however, fell 2.5% from the previous quarter in Q1 2026.

How much did prices fall in Zala?

Average advertised residential prices were 1% below July 2025. This refers to asking prices rather than a confirmed 1% decline in all completed transaction values.

How expensive is Budapest housing?

The July average advertised price was around HUF 1.49 million per square metre. Existing homes actually sold for an average of about HUF 1.2 million per square metre in the first quarter.

What is happening to Budapest new builds?

The average advertised price reached around HUF 1.83 million per square metre in July after increasing 1.3% from June, while the pipeline and available stock have also expanded sharply.

Why is Borsod still up more than 30%?

Part of the increase reflects a larger share of newly built and more expensive properties entering the available stock from a very low base.

Is Lake Balaton’s property market slowing?

Yes. Existing-home transaction prices in the Balaton agglomeration were only 0.3% higher year on year in the first quarter, while new-build asking prices in surrounding counties fell 0.7–1.5% month on month in July.

How many homes were sold in July?

Duna House estimates approximately 9,292 residential transactions. It is a market estimate rather than final official statistics.

Is housing supply increasing?

Yes. Around 146,400 homes were available for sale nationwide at the end of July, almost 7% more than a year earlier.

Could Hungarian property prices fall further?

Local corrections are increasingly possible, but current data does not establish a broad national downturn. Strong mortgage lending and government-supported finance remain significant sources of demand.