In real terms, home prices increased 19.0pc last year.

In the fourth quarter of 2025, home prices were 22.5pc higher than the level justified by fundamentals, the NBH said.

In 2025, just 12,000 new homes were completed in Hungary, but the 37pc increase in the number of building permits issued could result in a significant increase in supply in the coming years, mainly in the capital and other major cities, the NBH said.

Looking ahead, 15,700 new homes could be completed in Budapest this year, a 30pc increase from a year earlier.

Presenting the report on the home market, Sandor Winkler, who heads the central bank's real estate market analysts, said the Home Start subsidised credit scheme for first-time home buyers rearranged the housing market. With the launch of the scheme, the ratio of first-time home buyers in the capital jumped to 40pc from 25pc in one year, while the presence of investors on the domestic home market declined.

Around one-fifth of housing loans is now market-based, while the majority is subsidised loans, with Home Start loans accounting for 70pc of those. Within the Home Start programme, the ratio of loans spent on the purchase of used homes is 90pc, while for market-based loans it is 74pc, he added.

He also noted that the ratio of home purchases on credit, after averaging 35pc in H1 2025, had reached 64pc by March due to the impact of the scheme.

Winkler said home transaction numbers rose 3pc last year to 152,000, boosted by the Home Start scheme in the autumn, but in Q1 2026 they were down by 18pc nationally and were 29pc lower in Budapest compared to the same period a year earlier.

Home prices are estimated to have risen by 18pc around the country in Q1 and were up 16.5pc in Budapest. The pace of price increases is decelerating, and could be down at an 11pc increase in the capital in Q2, he noted.

MTI Stock Photo

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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