Where is the Budapest Real Estate Market Heading in 2025? Insights from At Home Budapest

The Budapest real estate market is buzzing with activity in 2025, and we are seeing firsthand how this dynamic city is adapting to the shifting tides of the housing market. From skyrocketing property prices to a renewed sense of urgency among buyers, this year is shaping up to be a transformative one for both investors and homebuyers. 

What’s Driving the Buzz in 2025?

In the past year, Budapest’s real estate market has been on a steady upward trajectory. Prices rose significantly in 2024, and that trend continues into 2025. Properties are being snapped up faster than ever—often in mere days. If you’re considering buying a property, speed and decisiveness are more crucial than ever.

So, what’s fueling this surge? Here are the key factors we’ve noticed:

1. Maturing Investments Flooding the Market
   This year, a large wave of government bonds is maturing, returning billions of forints to investors. We’ve seen many of our clients redirecting these funds into real estate as they search for safer, more lucrative options for their money.

2. Falling Government Bond Yields
   With government bond yields plummeting from 17–19% to under 5%, real estate has quickly become a more attractive investment. Clients are increasingly seeking property opportunities to diversify their portfolios and protect their wealth.

3. Stabilizing Inflation Inspires Confidence
   Inflation in Hungary peaked above 20% last year but has begun to stabilize. This has brought a sense of relief to buyers, many of whom are regaining confidence to move forward with purchases they postponed in previous years.

Shifts We’re Seeing in Buyer Behavior

At At-Home Budapest, we work with a mix of personal buyers and investors, and the shift in behavior has been fascinating to watch. Last year, we noticed that personal purchases made up most transactions, with fewer clients focusing on investments. As the market has rebounded, this ratio is moving back towards the typical 70:30 split, indicating a resurgence in investment-driven property acquisitions. While not all investors withdrawing from government bonds are turning to real estate, it's estimated that 5–10% are reallocating their funds into property investments.

We’re seeing a resurgence of interest in rental properties, particularly in prime areas like District V and District XIII, where demand from expats and professionals remains strong. For those eyeing long-term returns, now is the time to act before prices climb even higher.

What Does This Mean for You?

Here’s how you can navigate Budapest’s fast-moving market in 2025:

1. Buyers: Move Fast and Be Flexible
   If you’re searching for your dream home, time is of the essence. Properties are moving quickly, and it’s essential to be prepared to make decisions just as fast. At At-Home Budapest, we’ll help you stay ahead of the competition by providing up-to-date listings and guiding you through the process.

2. Investors: Look for Hidden Gems
   Whether you’re looking for a historic apartment to renovate or a sleek new development with high rental potential, the opportunities are vast. Our team specializes in helping investors identify properties that match their goals.

3. Sellers: Now is Your Time
   With demand far outpacing supply, 2025 is shaping up to be an ideal time to sell. We’re helping sellers maximize their property’s value by marketing it to our wide network of local and international buyers.

What’s Next for 2025?

We anticipate that the current frenzy will stabilize slightly in the latter half of the year, but this doesn’t mean prices will drop. With limited housing supply and steady demand, we expect Budapest property values to continue their upward climb  just at a more sustainable pace.

If you’re considering entering the market, now is the time to act. Whether you’re buying your first home, investing in a rental property, or selling your current space, we’re here to help you every step of the way.