Duna House sees Hungarian property prices up 10-20% next year, names these reasons

According to DH's statement, after a weak performance in 2023, 2024 brought a real trend reversal in the real estate market. Improving economic conditions, a declining interest rate environment and renewed home-building subsidies have boosted buying sentiment. Real estate demand has reached a two-year peak this year, with the market expected to close the year around the midpoint of the estimated range of 110,000-130,000 transactions, an increase of around 14% compared to 2023.

They underlined that, in addition to the family housing allowance CSOK Plus, which will be available next year, and the possibility of a 10% co-payment (own resources) to help first-time home buyers, the 21-point New Economic Policy Action Plan announced by the government, including the housing subsidy of up to HUF 150,000, which can be used for rent and loan repayments, and the possibility of a workers' loan, can provide motivation for home creation. On the investor side,

the capital flowing from Premium Hungarian Government security interst payments could bring an extra 20,000 transactions to the real estate market in 2025.

They also pointed out that next year the government's housing policy will change, and in addition to increasing demand, the focus will be extended to expanding the supply side. The Housing Capital Programme will have a stimulative effect on the economy, stimulating the limited supply of new housing, and increased investor interest should also have a positive impact on the condition of the second-hand housing stock.

However, it is feared that the growth in supply will not keep pace with the persistent and expected further increase in buyer interest, so prices may start to rise to a greater or lesser extent depending on the type of property, condition and location.

Duna House experts estimate an annual price increase of 10-20% in 2025.

They said that the domestic credit market has been much more active this year than previously expected, and by the end of the year, the volume of forint-based mortgage loans for housing purposes could exceed HUF 1,300 billion, 25% of which is accounted for by the CSOK Plus interest-subsidised scheme.

The experts of Credipass, the international financial brand of the group, are optimistic about next year, forecasting a further 10% increase in the credit market by 2025 compared to this year's performance, Duna House said in a statement.

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