Hungarian housing market faces regulatory shifts and rising rents

The Hungarian housing market is experiencing significant shifts due to regulatory changes and new financial programs. The Otthon Start mortgage program, which offers loans up to 50 million HUF with a maximum 3 percent fixed interest rate and a 25-year term, has become a major factor in home ownership. However, discussions are emerging regarding potential tightening of eligibility rules to ensure the program specifically targets those without prior property ownership.

In Budapest, the district of Terézváros has seen a rise in long-term rental prices following a total ban on short-term rentals like Airbnb, which took effect on January 1, 2026. Data indicates that while the average rental price in Budapest rose by approximately 4.7 percent annually, Terézváros saw an increase of around 7 percent. This trend suggests that the ban has not prevented price hikes, with median rental prices stabilizing at a higher level than before the regulation.