Despite this regional downturn, Budapest maintains its position as one of the more accessible capitals in the area, with only Bucharest offering lower average prices for similar properties.

Rapid Price Growth Across the Region

The 2025 figures indicate that property price hikes in CEE are among the steepest in the European Union. Hungary saw the fastest growth in the bloc at 21.2%, followed by Croatia, Slovakia, and Bulgaria, where increases ranged between 12% and 16%. Outside the region, only Portugal (19%) and Spain (13%) showed similar upward momentum.

Balázs László Balogh, chief economic expert at ingatlan.com, noted that housing prices in peripheral countries are rapidly catching up with core economies. More importantly for local residents, the price differences between regional capitals are also shrinking.

The Affordability Index: Years of Income Required

The study calculated affordability by measuring how many years of net average income are required to purchase a 50-square-meter apartment.

Bucharest: Remains the most affordable in the region. A typical apartment costs roughly HUF 41 million, requiring less than seven years of average earnings.

Budapest: Ranked as the second most affordable. With an average price of HUF 63.5 million, a buyer needs 9.2 years of net income to cover the cost.

Warsaw & Bratislava: Affordability is lower in these cities, requiring 10 and 10.1 years of income respectively. Prices hover around HUF 73 million in Warsaw and HUF 67.2 million in Bratislava.

Prague: Continues to be the most expensive and least affordable capital. A comparable property costs over HUF 98 million, demanding nearly 11 years of average income.

A Potential Slowdown in 2026

A significant trend highlighted in the report is the narrowing gap between the most and least affordable cities. A year ago, the difference in required working years between the highest and lowest-ranked capitals was nearly double; today, that gap has shrunk to about 1.5 times.

This convergence suggests that the markets which were previously "cheaper" are catching up quickly, which may eventually act as a natural brake on further price inflation.

Balogh suggests that because effective demand in Budapest is reaching its ceiling, the breakneck pace of price increases seen last year is unlikely to continue. For the remainder of 2026, experts anticipate a much slower rate of growth both in the capital and across Hungary as the market stabilizes.

Photo courtesy of Krénn Imre Photography

*********************************************************************************************

You're very welcome to comment, discuss and enjoy more stories via our Facebook page: 

Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary

You can subscribe to our newsletter here: XpatLoop.com/Newsletters

Showcase Your Business to Expats in the Loop:

As an independent portal we’re grateful to all commercial supporters who help keep you in the loop with fresh insights and inspiration. Do you want your business to reach tens of thousands of potential high-value expat customers? If so please contact us here.