Hungary housing market sees rising supply and stabilizing prices

The Hungarian housing market is undergoing a period of transition characterized by expanding supply and stabilizing price growth. According to the MBH Analysis Center, nationwide home prices are projected to rise by 8% to 13% this year, while new housing loan disbursements could exceed HUF 2.7 trillion. The market is expected to move toward a more sustainable growth path supported by rising real wages, moderate inflation, and declining interest rates.

On the supply side, construction activity is showing signs of recovery. In the first half of 2026, 6,278 new homes were completed, a 22% year-over-year increase. Analysts forecast approximately 15,000 new completions in 2026 and up to 20,000 in 2027. Development activity has been particularly strong in Budapest, where projects involving roughly 22,000 homes are currently under construction or on sale.

However, challenges remain regarding the scale of new construction. Data indicates a historical decline in annual completions, dropping from 28,208 in 2020 to 12,062 in 2025. To achieve a 1% annual renewal rate of the national housing stock, approximately 46,000 new homes would be required annually. Additionally, a review of the Otthon Start Program may affect 28 projects involving roughly 17,000 planned homes, emphasizing the need for strategic placement of new developments based on local demand and infrastructure capacity.