The National Bank of Hungary published its Housing Market Report, describing an upturn in housing market demand at the beginning of 2025 supported mainly by household savings, alongside a sharp acceleration in house prices and a strong increase in housing loan disbursements. In 2025 Q1, nationwide transaction numbers exceeded the long-term average, driven largely by higher turnover in rural areas, while limited supply and strong demand meant 8.3% of sales closed above the advertised price nationwide and 18% in Budapest. House prices rose 15.1% year on year in 2024 Q4 (10.9% in real terms), with preliminary data showing 2025 Q1 annual growth of 15.0% nationwide and 19.2% in Budapest; the central bank estimates prices were 14.3% above levels justified by fundamentals, though it notes financial stability risks are mitigated by typically low loan-to-value ratios on outstanding mortgages. Housing loan disbursements rose 91% year on year in 2024 Q4, mainly reflecting higher contract sizes, with average market-based loan sizes reaching HUF 20 million for used homes and HUF 27 million for new home purchase or construction by February 2025; average APRs were broadly unchanged at 6.7%, and affordability deteriorated as prices outpaced incomes. On the supply side, building permits issued in 2024 were 27% lower than in 2023, vacant new homes in Budapest fell 11% year on year, and average new-build prices in the capital rose to HUF 1.68 million per square metre by end-2025 Q1.

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