Hungary records surge in consumer confidence as housing market splits regionally

Hungary’s consumer confidence index jumped to –0.9 in May, the highest level since 2019 and the fourth‑highest in the past 23 years, according to the GKI Economic Research Institute. The 16.1‑point monthly rise was driven by optimism about the country’s economic situation and expectations that the new government may aim to join the euro area by 2030.

At the same time, the Hungarian housing market showed divergent trends. After a 1.1 % price increase in March, Budapest’s residential price index slipped by 0.1 % in April, with annual price growth easing to 10.9 % from 13.7 %. The slowdown is linked to the “Otthon Start” program’s 1.5 million‑forint per square‑metre price cap, which has restrained price growth in the capital. Outside Budapest, price growth remains strong, with annual increases of around 15‑18 % in regions such as Pest county (18 %) and the Central‑Danube and Southern‑Alföld areas. Median prices in Budapest’s districts varied, with the XIII district showing the highest supply and a median price of 1.65 million HUF per square metre, while the XXIII district remained the cheapest at about 901 000 HUF per square metre.