Home staging: adding value through the senses

The Budapest property market clearly slowed in 2026. According to the Hungarian National Bank (MNB) house price index, Budapest prices in the second quarter of 2026 were 8.3% higher than a year earlier, down from 15.9% in the first quarter, and fell 0.6% quarter on quarter. The ingatlan.com index showed annual growth in Budapest easing to 3.3% in September. Transactions declined and buyers gained negotiating power.

How did house prices develop in 2026?

2025 was exceptional: according to the MNB's May 2026 Housing Market Report, Budapest prices in Q4 2025 were 26.0% higher than a year earlier, and the central bank estimated overvaluation at 22.5%. In 2026 this momentum broke.

According to the Hungarian Central Statistical Office (KSH), national annual growth in Q2 was the slowest since the end of 2023, and Hungary was one of only two EU member states, alongside France, to record a quarterly price fall.

Activity also fell. According to the MNB, the number of transactions in Q1 2026 was 18% lower nationally and 29% lower in Budapest than a year earlier.

What does a square metre cost in Budapest today?

According to ingatlan.com data from early October, the median asking price of pre-owned apartments in Budapest is HUF 1.41 million per square metre, 2% higher than a year earlier.

Duna House's August data refers to brick apartments actually sold: the average price per square metre was HUF 1.598 million in Buda, HUF 1.403 million in the inner city (Districts V, VI and VII) and HUF 1.095 million in Pest. Inner city prices fell 3% year on year, the average negotiated discount was around 4%, and the time to sale was 88 days in the inner city, 92 in Buda and 100 in Pest.

The new-build market is moving more slowly: according to Ingatlantájoló's October data, the average asking price in Budapest is HUF 1.92 million per square metre, 1.1% higher than a year earlier, and above HUF 3 million in District XII.

Interest rates and state programmes

The MNB cut its base rate in several steps in 2026, and it has stood at 5.50% since August. At its meeting on 20 October 2026, the Monetary Council left it unchanged.

Since September 2025, demand has also been shaped by the Otthon Start programme: a fixed 3% loan of up to HUF 50 million over up to 25 years, available for apartments up to HUF 100 million or houses up to HUF 150 million, and up to HUF 1.5 million per square metre. According to the MNB, the share of first-time buyers in Budapest rose from 25% to 40% as a result. Because of the price caps, the programme does not directly affect the premium segment.

On 19 October the government announced that Otthon Start would be replaced from 2027 by a Wekerle Plusz programme, with a fixed 3% rate for new homes and 5% for pre-owned homes, for applicants aged 18 to 41. For now this is an announcement: the detailed rules and the closing date for Otthon Start applications have not yet been published. Existing Otthon Start contracts keep their terms.

What is happening in the premium segment?

• The buyer base has shifted. According to Duna House, 52% of buyers of properties above HUF 200 million in the first four months of 2026 were business owners, up from 41% a year earlier.
• Fewer investors. Duna House's July barometer shows the share of investors among Budapest buyers falling from 41% to 27%. According to the MNB, however, investors now make up the majority of sellers in Budapest.
• Larger discounts. In Buda, the average negotiated discount rose from 2% to 5%, and the share of properties above HUF 2 million per square metre grew from 15% to 25%.
• Growing supply. According to zenga.hu, 6.5% of listings in 2026 were above HUF 200 million, compared with 4% in early 2024.
• Foreign buyers. According to KSH data for 2024, foreigners accounted for 7.8% of Budapest transactions and around 10% of their value, and in the inner Pest districts for 19% of transactions and 26% of turnover.

On 6 October a draft wealth tax was also put out for public consultation. It would levy 1% on net wealth above HUF 1 billion, including real estate. Under the draft, there would be no general exemption for the owner's own home, while loans would be deductible. It is not yet law, and its final form will be decided in the legislative process.

Rentals and short-term letting

Short-term letting has been banned in Terézváros (District VI) since 1 January 2026, and no new short-term accommodation can be registered in Budapest until the end of 2026. In District VII, from 2027 apartments cannot be let short term without the consent of the condominium. For inner city investment properties, this shifts the emphasis towards long-term letting.

What to watch in 2027

We do not make forecasts, but these factors will shape the market:

1. The interest rate path. Further rate cuts would strengthen demand from mortgage buyers.
2. The end of Otthon Start. Announcing the closing date could pull demand forward in the segment below the programme's price caps.
3. New supply. The MNB expected around 15,700 new homes to be completed in 2026, more than in 2025.
4. The final wealth tax rules. In the top segment, they could influence ownership and investment decisions.

What does this mean for sellers and buyers?

For sellers, realistic pricing matters more today than a year ago. In a slowing market, an overpriced property stays on the market longer and later has to accept a larger discount. Accurate positioning and high-quality presentation, such as home staging, can speed up a sale significantly.

For buyers, there is more choice and more room to negotiate, especially in Buda. When a property with rare features comes onto the market, such as a home with a panoramic view or an exceptional location, it is worth deciding quickly, as such properties remain scarce even as supply grows.

If you would like to know what these figures mean for your property, ask for a personal consultation or browse our current listings.

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