Hungarian real estate market shows slowing price growth

The Hungarian real estate market is experiencing a slowdown in price growth and a shift in demand. In Budapest, demand for panel apartments fell by more than 40 percent in the first half of the year, driven by high square meter prices reaching between 1.5 and 1.7 million HUF for two-room units.

Nationwide, the pace of apartment price increases moderated in July. Monthly price growth slowed to 0.1 percent, while the annual increase stood at 11.9 percent. In Budapest, prices rose by 0.9 percent compared to the previous month, though the annual increase was 8.3 percent. The capital has also seen a significant rise in supply, with 5,381 new apartments for sale this year compared to 3,742 a year ago.

Regional trends vary across the country. Pest County saw a 1.2 percent monthly price increase, whereas the Southern Great Plain region experienced a 2.9 percent monthly decrease. Debrecen remains a leader in both high prices for used apartments and the expansion of new construction supply. Experts suggest that annual price growth may stay below 10 percent this year, a level of moderation not seen since 2016.