Hungarian real estate supply rises as buyer demand falls

The Hungarian real estate market is experiencing a significant divergence between rising supply and declining demand. According to data from Ingatlan.com, the number of residential listings reached nearly 150,000 in late September, an 11% increase compared to the previous year. Conversely, buyer interest has dropped sharply, with telephone inquiries falling by 37% year-on-year.

The new construction sector shows a particularly stark trend. The supply of new apartments has reached a five-year high, with 10,700 units currently available—a 68% increase over the last two years. However, demand for these new homes has plummeted, with inquiries down 26% between January and August compared to the previous year. Experts suggest this mismatch is driven by decreased affordability following previous price hikes and a shift in investor activity.

While Budapest has seen an increase in demand for apartments, interest in other regions and the Balaton area has declined. Analysts expect that as supply continues to grow and buyers do not absorb properties at previous rates, the bargaining position of consumers will strengthen, likely leading to a significant slowdown in housing price increases.