The National Bank of Hungary has published its Housing Market Report, showing that house prices rose by 23.5 per cent nationwide in 2025, or 19.0 per cent in real terms, the fastest pace in 25 years. By 2025 Q4, prices stood 22.5 per cent above the level justified by fundamentals. The Home Start Programme shifted demand toward first-time buyers and subsidised borrowing. The central bank says the programme improved affordability for eligible applicants but may also have contributed to higher house prices, while new housing supply in Budapest expanded and nationwide completions are expected to increase in 2026. Private individuals conducted an estimated 152,000 housing transactions in 2025, up 3 per cent on 2024, but transactions fell 18 per cent year on year in 2026 Q1. In Budapest, the share of first-time buyers rose from 25 per cent to 40 per cent over a year after the programme started in September, while investors made fewer purchases and became a majority on the seller side. Housing loan contract volumes rose 130 per cent year on year in 2025 Q4 and 104 per cent in 2026 Q1, lifting the share of subsidised loans from 23 per cent to 81 per cent of housing lending by 2026 Q1. By March 2026, banks had concluded 33,200 Home Start loans worth about HUF 1,161 billion, with 90 per cent financing used homes, and the share of home purchases financed with loans had risen above 60 per cent from 36 per cent before the programme. On supply, 12,000 newly built homes received occupancy permits in 2025, but building permits rose 37 per cent and the central bank expects completions to increase to 15,700 in 2026, while the stock of new homes available for purchase in Budapest reached a record 9,490 flats by March 2026.
National Bank of Hungary2026-05-21
National Bank of Hungary reports 23.5 per cent house price growth with prices 22.5 per cent above levels justified by fundamentals in 2025 Q4
The National Bank of Hungary’s Housing Market Report shows nationwide house prices rose 23.5 per cent in 2025, or 19.0 per cent in real terms, leaving prices 22.5 per cent above levels justified by fundamentals by 2025 Q4. The Home Start Programme shifted demand toward first-time buyers, sharply increased subsidised housing lending and the share of loan-financed purchases, and likely contributed to higher prices. New housing supply is expanding, with occupancy permits up, building permits rising 37 per cent and the central bank expecting completions to reach 15,700 in 2026.