Price Trends and Averages

The average price for a new home in the capital reached HUF 128 million in the first quarter of 2026. This represents a minor increase from HUF 127 million during the same period in 2025, suggesting a cooling period after the steep climbs seen in previous years.

On a per-square-meter basis, the average price in Budapest has hit HUF 1.85 million. To put this in perspective, this is a 10% increase year-on-year and a nearly 26% jump compared to two years ago. Notably, the era of "budget" new builds is over; sub-HUF 1 million per-square-meter prices have virtually disappeared from the Budapest market.

District Breakdown: Luxury vs. Development Hubs

The price gap between districts remains stark, with several areas crossing the 3 million mark:

Premium Districts: Average prices exceeded HUF 3 million/sqm in the leafy Districts II and XII, as well as the central District V.
Central Pest: Prices in District I averaged around HUF 2.5 million/sqm, while Districts VI and VII remained above the HUF 2 million threshold.
Development Hotspots: District XIII continues to lead in supply, with prices ranging between HUF 1.8 million and 1.9 million/sqm.
Emerging Value: Buyers can still find options between HUF 1.5 million and 1.8 million/sqm in Districts VIII, IX, XIV, XIX, and XXII.

Supply Surges While Demand Recalibrates

The report highlights a significant expansion in supply. Total new-build projects in Q1 2026 accounted for nearly 28,000 units. Of these, 9,500 are currently available, and 1,200 are in the planning or pre-sale phase — a 54% increase in these categories compared to last year.

Conversely, sales volume has dipped. Only 1,861 new homes were sold in the capital during Q1, representing a 33% decrease year-on-year. Experts view this as a "natural correction." Activity in early 2025 was artificially high due to the Otthon Start program and a massive influx of capital from maturing retail government securities.

Future Outlook

Duna House chief analyst Péter Szegő suggests that the market is heading toward a healthier equilibrium.

"The increased supply in well-stocked areas like Districts XIII, XI, and IX is forcing 'pricing discipline' on developers," the report noted.

While transaction volumes for 2026 are expected to fall short of last year’s records, a seasonal strengthening is anticipated during the spring and summer months. Annual price growth is projected to settle into a more sustainable range of 8-10%.

Photo: Pixabay.com

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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