The figures suggest that Hungary's property market may be entering a new phase after the rapid price increases of recent years.

The annual rate of price growth fell from 12.2pc in June to 11.9pc in July. At the same time, the monthly increase slowed from 0.6pc in June to just 0.1pc in July.

In Budapest, the picture was somewhat different. Prices rose 0.9pc month-on-month in July after falling 0.1pc in June. However, annual price growth in the capital slowed to 8.3pc, significantly below the national rate.

The July increase in Budapest was described by ingatlan.com chief economist László Balogh as more of a correction following the previous month's slight decline than a return to the rapid growth seen earlier.

He said the housing market was increasingly showing that the strong price increases of the recent period had lost momentum.

Budapest supply jumps nearly 44pc

One of the clearest signs of changing market conditions is the sharp increase in the number of new-build properties available in Budapest.

In August, 5,381 newly built homes were advertised for sale in the capital, compared with 3,742 a year earlier. That represents an increase of 1,639 properties, or 43.8pc.

The increase was particularly striking in District XIII, where the number of advertised new-build homes rose from 914 to 1,815 in a year, almost doubling the available supply.

District XX recorded the largest percentage increase, at 190pc, although this was from a relatively low base. Supply increased by 188pc in District I and by 139pc in District XII.

The pace of expansion has already begun to slow, however. The number of new-build properties advertised in Budapest increased by only 0.6pc between July and August.

The increase in choice is not confined to the capital. Across Hungary's county-seat cities, the supply of new-build homes rose from 1,169 to 1,751 in a year, an increase of almost 50pc.

Debrecen recorded the largest increase in absolute terms, with the number of advertised new properties rising by 191 to 426. Supply increased by 138 homes in Szeged and by 107 in Miskolc.

The trend is not universal. The number of new-build properties advertised for sale fell by almost 49pc in Kecskemét, 50pc in Békéscsaba and nearly 46pc in Zalaegerszeg.

Budapest prices remain highly dependent on location

Despite the slowdown, property prices remain extremely high in some parts of Budapest.

Among used homes, District V remained the most expensive, with a median asking price of slightly more than HUF 2 million per square metre. District I followed at around HUF 1.87 million per sqm.

At the other end of the Budapest market, the median asking price in Soroksár (District XXIII) was HUF 942,000 per sqm, while Csepel (District XXI) stood at approximately HUF 1.02 million.

The difference is even more pronounced in the new-build market.

New homes in District XII had a median asking price of almost HUF 2.98 million per sqm, while District II was close behind at HUF 2.97 million.

Even the cheapest Budapest district for new-build properties, District XV, had an asking-price level of approximately HUF 1.21 million per sqm.

For international buyers, the figures highlight the importance of looking beyond the Budapest-wide average. The price of a property can vary dramatically depending on the district, with some areas costing more than twice as much per square metre as others.

Huge gap between Hungary's regional cities

There are similarly large differences outside Budapest.

Among Hungary's county seats, Debrecen had the highest median asking price for used residential property at approximately HUF 1.04 million per sqm.

Szeged followed at HUF 980,000 per sqm, while Székesfehérvár stood at HUF 954,000.

At the other end of the scale, the median price in Salgótarján was just HUF 312,000 per sqm. Békéscsaba stood at HUF 541,000 and Miskolc at HUF 609,000.

The median asking price in Debrecen was therefore more than three times that of Salgótarján.

This growing geographical spread is particularly relevant to buyers willing to consider locations outside Budapest, where significantly lower prices can still be found.

Pest County bucks the slowdown

The national figures also conceal major regional differences.

Pest County was among the strongest performers in July. Monthly price growth accelerated from 0.2pc in June to 1.2pc in July, while annual growth increased from 14pc to 15.6pc.

Western Transdanubia also recorded a sharp monthly rebound. Prices fell 1.7pc in June but increased by 3pc in July.

The Southern Great Plain moved in the opposite direction. After prices increased by 3.2pc in June, they fell 2.9pc in July.

According to ingatlan.com, the current market is increasingly being driven by more affordable cities and suburban areas where prices remain within reach of buyers using the government's subsidised housing finance scheme.

Otthon Start remains an important market factor

The Otthon Start programme, which provides eligible first-home buyers with access to fixed-rate financing at up to 3pc, continues to influence demand.

The latest market analysis suggests that more affordable locations are likely to benefit as buyers look for properties that fit within the programme's price and eligibility limits.

The impact of the programme is also visible in the wider lending market. Bankmonitor reported that the first year following the announcement of Otthon Start was associated with approximately 12pc growth in residential property prices nationwide and 8pc in Budapest.

At the same time, housing lending has remained exceptionally strong. New housing-loan contracts reached HUF 282 billion in June, according to Bankmonitor, setting a new monthly record.

This creates an unusual situation in which housing prices are losing momentum while demand for housing finance remains extremely strong.

Official data also point to a cooling market

The latest ingatlan.com asking-price figures are consistent with a broader slowdown visible in official statistics.

According to the Hungarian Central Statistical Office (KSH), residential property prices in the first quarter of 2026 were 8.6pc higher in nominal terms than a year earlier, substantially below the 20pc annual increase recorded for 2025 as a whole.

KSH also reported that its combined residential property price index fell 2.5pc compared with the previous quarter in the first quarter of 2026.

The official statistics therefore provide additional evidence that the extraordinary price growth seen during 2025 has begun to ease.

There is an important distinction, however: the ingatlan.com figures are based on advertised asking prices, while KSH's housing price index is based on property transactions. The two measures therefore capture different stages of the market.

More choice could improve buyers' negotiating position

The combination of slower price growth and expanding supply could gradually shift the balance between buyers and sellers.

Hungary entered 2026 following an exceptionally strong period for property prices. According to the MNB's latest housing market report, residential property prices rose 23.5pc in nominal terms nationally during 2025, while real prices increased by 19pc.

That rapid appreciation was followed by signs of cooling demand and increasing supply.

Earlier this summer, ingatlan.com reported that more than 145,000 homes and houses were being advertised for sale nationally, up from around 137,000 a year earlier.

A larger choice of properties gives buyers more opportunity to compare homes and potentially negotiate, particularly when sellers are competing against newly built developments.

For buyers, the change could be significant: rather than having to compete for a limited number of properties during a rapidly rising market, they may increasingly have the opportunity to take more time, compare alternatives and negotiate on price.

2027 could bring single-digit annual price growth

The most striking forecast from the latest analysis is that annual house-price growth could fall below 10pc in 2027 if the factors currently restraining prices continue through the end of this year.

Balogh László of ingatlan.com said this would represent a significant change in the market. Based on KSH data, the last time annual residential price growth was below 10pc was in 2016.

That does not mean that property prices are expected to fall sharply. Rather, the latest indicators point towards a period in which prices could continue rising but at a considerably slower rate.

For homeowners, that would mark a dramatic change from the double-digit and, in 2025, exceptionally rapid increases seen recently.

For prospective buyers, meanwhile, slower price growth combined with a larger choice of properties could make the market considerably less pressured than it has been.

A market in transition

Hungary's housing market is therefore showing two very different faces.

On one side, homes remain substantially more expensive than they were a year ago, with national asking prices still 11.9pc higher and some Budapest districts approaching HUF 3 million per square metre for new-build properties.

On the other, monthly price growth has almost stalled nationally, Budapest's annual increase has fallen to single digits, and the supply of new homes in the capital has jumped by nearly 44pc.

The huge differences between districts and cities are also becoming increasingly important. While premium Budapest locations command prices approaching HUF 3 million per square metre, properties in some county seats remain available at less than HUF 500,000 per sqm.

For international buyers considering Hungary, the latest figures therefore suggest that simply asking whether Hungarian property prices are rising is no longer enough.

The more important question may now be where prices are rising, how quickly they are moving and how much choice buyers have.

After several years of exceptionally rapid appreciation, Hungary's property market appears to be moving towards a slower and potentially more balanced phase.

Photo: Pixabay

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