The National Bank of Hungary published its Housing Market Report, finding that house prices rose sharply in 2025 and were around 19 per cent above levels justified by fundamentals on average nationwide in 2025 Q2. It links a jump in demand following the Home Start Programme announcement to higher market activity and warns that, without a substantial and rapid increase in housing supply, stronger demand is likely to drive further price increases and could make recent affordability improvements temporary for eligible borrowers. In 2025 H1, demand was 5 per cent higher than a year earlier, supported by favourable macroeconomic fundamentals and savings flowing in from the government securities market. Demand for residential properties for sale rose 46 per cent year-on-year in August 2025, followed by a 37 per cent year-on-year increase in completed transactions in September; Hungary also recorded the strongest nominal house price growth in the European Union. Nationwide prices increased 17.9 per cent year-on-year in 2025 Q2, with preliminary data showing annual growth accelerating to 23.9 per cent in 2025 Q3, including 29.9 per cent in Budapest. Housing loan contract volumes rose 26 per cent while the number of contracts increased 8 per cent, indicating larger average contract sizes alongside rising prices. Supply conditions remained tight due to low completions, although Budapest condominium project starts more than tripled in 2025 H1 and permits rose, potentially influenced by applications brought forward ahead of stricter building rules taking effect in July 2025; the average price of new homes in Budapest reached HUF 1.77 million per square metre by 2025 Q3 after 15 per cent annual growth.

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