Housing prices, housing price index, Q1 2025

Contents

• Housing market turnover slowed down in the first quarter
• Rapid price increases in the housing market at the beginning of the year
• Number of dwellings sold fell in Budapest
• The slump in home building has also set back the new housing market
• Rapid price increases in Budapest, slowdown in the rural second-hand housing market
• Slightly higher price increases in EU and euro area housing markets
• Further data and information

In the first quarter of 2025, the expansion of the domestic housing market observed in 2024 did not continue, with a tenth fewer dwellings changing hands than a year earlier. The first period of the year was characterised by accelerating housing price growth. Second-hand dwellings, which account for the vast majority of sales, rose in price by 5.7%, while new dwellings gained 2.3%. The overall housing price index rose by 12.5% year-on-year, which represents a 6.9% increase in real terms.

Housing market turnover slowed down in the first quarter

After the upswing in 2024, the number of dwellings sold in Q1 2025 was 10% below the same period of the previous year. Sales of used homes fell by 8.2%, while new home sales were less than half of a year earlier (based on transactions received to date, taking into account similar processing).

The market weight of new dwellings is rather low, 4.9% in 2024 and 1.9% in Q1 2025, according to the data available so far. This is mainly due to a decline in the number of homes being built for sale, although this ratio is expected to rise as more data from the big cities become available.

Rapid price increases in the housing market at the beginning of the year

The higher rate of housing price growth at the beginning of the year, typical of recent years, has also occurred this year: in Q1 2025, prices increased by 5.3% compared to the previous quarter, with a significant increase of 2.7% in real terms. This means that in nominal terms, dwellings were 12.5% more expensive in Q1 and 6.9% more expensive in real terms than in the same period of the previous year. Based on the aggregate housing price index, the combined price of new and second-hand dwellings increased by almost 3.4 times the 2015 base.

In the first quarter of 2025, second-hand dwellings became 5.7% more expensive in nominal terms, with real prices rising by 3.1%. The 2.3% increase in the price of new dwellings suggests stagnation in real terms, but it should be stressed that the number of observations available for the period under review is still very low.

The year-on-year increase in the real housing price index was sustained until the third quarter of 2022, with the exception of a blip linked to the coronavirus epidemic, after which a five-quarter decline in real housing prices began. From Q4 2023, however, a sustained increase in real prices resumed, with housing price levels in Q1 2025 (198% of the 2015 base) surpassing the previous peak of Q2 2022 (196%).

Number of dwellings sold fell in Budapest

After the previous decline, in 2024 39% more sales were recorded in Budapest and 36% more in the county seats than a year earlier. In Q1 2025, however, the number of dwelling sales in Budapest and the county seats was 24% and 5.9% lower respectively than in the same period of the previous year (with the same processing rate). In 2024, the housing market in smaller towns and villages also expanded (by 20% and around 10% respectively). However, in Q1 2025, the number of dwellings sold in villages was also lower (by 7.5%), while there was no significant change in the housing market in smaller towns.

The slump in home building has also set back the new housing market

For 2024 so far, data on around 6.2 thousand new homes sold have been received, with 47% of homes sold in Budapest. The number of observed sales in Q1 2025 is still lower than usual at 328, 35% of which were in Budapest.

New housing market in Q1 2025    

• The national average price increased from HUF 70.4 million in Q1 2024 to HUF 71.9 million compared to the same period last year.

• The price per square metre approached HUF 1.2 million. Due to the greater weight of smaller towns, this value increased more moderately by 5.0% compared to the same period of the previous year.

• The average price of a new dwelling in Budapest was HUF 88.8 million, nearly HUF 4.2 million more than in Q1 2024. The average price per square metre exceeded HUF 1.5 million.

• The average price of a new dwelling was HUF 66.8 million in the capital seats and HUF 57.8 million in the smaller towns. The price per square metre in both categories was close to HUF 1 million.

Rapid price increases in Budapest, slowdown in the rural second-hand housing market

Behind the 5.7% increase in the price of second-hand housing in Q1 2025, fragmented spatial trends are emerging. Housing appreciation has accelerated in Budapest and continued in the county seats. At the same time, prices in smaller towns were slightly below the level of Q4 2024, while in villages they were significantly lower.

Second-hand housing market in Q1 2025

• In Budapest, the average price of a dwellling was HUF 62.5 million, HUF 8.8 million more than in the same period last year. The price per square metre was close to HUF 1.2 million, up HUF 228,000 from a year earlier.

• The average housing price in Budapest was 16% and the price per square metre 24% higher than a year earlier. The faster increase in specific prices reflects the appreciation of smaller homes, typically in multi-dwelling buildings. In the capital, the specific price of prefab flats rose by 29% in a year, that of non-prefab condominiums by 22% and that of detached houses by only 1.7%.

• The average price per square metre was around HUF 1.5 million in the Buda Hills and around HUF 1.3 million in the other districts of Buda. On the Pest side, only in the outer districts was the price per square metre of second-hand housing below HUF 1 million.

• The housing market in the county seats was characterised by a similar rearrangement to the capital, with a more moderate price increase: the price per square metre of prefab homes was 15 % higher than a year earlier, while non-prefab condominiums were 11 % more expensive, while the average price of detached houses was 3.4 % less expensive. As a result, the price per square metre in this category of settlement also rose faster (12%) than the average price per dwelling (3.2%) compared to the same period last year.

• The price per square metre of HUF 867,000 in the Balaton agglomeration was 11% higher than a year earlier.

• In real terms, the 5.9% annual nominal price increase in the Budapest agglomeration did not represent a significant shift from the price level of a year earlier. The average price per square metre (HUF 735 thousand) remained below the Balaton level.

Slightly higher price increases in EU and euro area housing markets

In Q1 2025, the aggregate housing price index for the 27 EU Member States was 158% of the 2015 base, while the euro area base index also exceeded 150%. Compared to the previous quarter, housing prices rose by 1.4% on average in the Member States and by 1.3% in the euro area. The Hungarian aggregate housing price index was 339% of the 2015 base, still the highest nominal index among the countries reporting data.

In Q1 2025

• In addition to the highest quarter-on-quarter increase of 5.3% in Hungary, Portugal (4.8%), Croatia (4.5%) and Bulgaria (4.2%) reported sharp price rises.

• Smaller falls of 1-2% were observed in Finland, Luxembourg and Slovenia. In Germany, after a prolonged period of falling prices, prices have reversed steadily and are now in their fourth quarter of rising housing prices. As a result, housing in Germany cost 3.8% more than a year earlier.

• The highest annual increase in housing prices was observed in Portugal (16%), followed by Bulgaria (15%) and Croatia (13%).

• Among the neighbouring countries, Croatia recorded a slightly higher rate, while Slovakia's housing price increase was practically the same as Hungary's (12%), while Romania, Austria and Slovenia recorded more moderate increases of between 3% and 5% over a year.

• Since 2015, real housing prices have risen the most in Portugal (196%), followed by Hungary (188%) and Croatia (160%). However, housing prices in Finland, Italy and Romania have fallen in real terms compared to the base period.

Methodology

Annual national data:
18.1.1.1. Summary data of housing
18.1.1.13. Housing price indices
18.1.1.14. Mean price per dwelling and sqm by region and building type
18.1.1.15. Number of housing transactions made by private persons

Annual regional data:
18.1.2.8. Mean price per dwelling by region and settlement type
18.1.2.9. Mean price per sqm by region and settlement type
18.1.2.10. Number of housing transactions made by private persons by region and settlement type
18.1.2.11. Mean price per dwelling by region and building type
18.1.2.12. Mean price per sqm by region and building type

Infra-annual national data:
18.2.1.1. Summary data of housing (quarterly data)
18.2.1.8. Housing price indices by quarter years
18.2.1.9. Number of housing transactions made by private persons by quarter years

Infra-annual regional data:
18.2.2.13. Mean price per dwelling by region and settlement type (quarterly data)
18.2.2.14. Mean price per sqm by region and settlement type (quarterly data)
18.2.2.15. Number of housing transactions made by private persons by region and settlement type (quarterly data)
18.2.2.16. Mean price per dwelling by region and building type (quarterly data)
18.2.2.17. Mean price per sqm by region and building type (quarterly data)

Further data and information

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