Hungary ranked 3rd in house price increases in EU even before Home Start announcement

According to recent data from Eurostat, Hungarian house prices rose by 15.1% in the second quarter of 2025 compared to the same period a year earlier.

Only Portugal (+17.2%) and Bulgaria (+15.5%) experienced even greater price increases.

The gap between the EU average increase and that of Hungary remains wide at 9.7 percentage points, although difference was as great as 16.5 ppts in the third quarter of 2022.

However, compared to the previous quarter, prices increased by only 1.1%, which was below the EU average of 1.6%. While the year-on-year increase in the price of new-build homes was lower than the increase in the price of existing homes (13.9% compared to 15.3%), both figures were among the highest in Europe.

However, compared to the previous quarter, the increase was only 1.1%, which was below the EU average of 1.6%.

In the first quarter, Hungarian housing prices rose by 16% yr/yr, with prices shooting up by a remarkable 8.4% on a quarterly basis. This was by far the steepest house price increase on the continent, and only the Portuguese market saw higher price growth (16.3%) than Hungary on an annual basis in the first three months of the year. In other words, the surge in Hungarian housing prices in the first half of the year was clearly outstanding in a European context.

The 13.9% price increase for newly built homes over the course of a year was lower than the 15.3% increase for existing homes, but both figures were among the highest in Europe.

"The data confirm what we have already observed in the market in recent months: after an exceptionally strong first quarter, activity slowed down towards the end of spring, as reflected in prices," said Dávid Valkó, senior analyst at OTP Ingatlanpont, commenting on the statistics.

It is also worth examining long-term trends in the housing market. When comparing the second quarter of 2025 with 2010, house prices increased more than rents in 21 of the 26 EU countries for which data are available. House prices more than tripled in Hungary (+277%) and Estonia (+250%) and doubled or more than doubled in 10 EU countries: Lithuania (+202%), Latvia (+162%), Czechia (+155%), Portugal (+141%), Bulgaria (+133%), Austria (+117%), Luxembourg (+112%), Slovakia (+105%), Poland (+104%) and Croatia (+102%). Italy was the only country where house prices decreased (-1%).   

During the same period, rents increased in 26 EU countries, with the highest rises registered in Estonia (+218%), Lithuania (+192%), Hungary (+125%) and Ireland (+117%). Greece was the only country where rent prices decreased (-9%). The EU average was just +29%.

Even more interesting is the difference between the rise in house prices and rents. No other European country has experienced such a significant disparity, with house prices in Hungary rising considerably more than rents over the past 15 years. This has made renting less profitable in recent years, with returns gradually declining. However, owners have been compensated by the increase in the price of rented apartments.

"After a period of subdued market activity in the second quarter, we can expect the Hungarian housing market to pick up again. The third quarter was shaped by the announcement of the Home Start programme, and

the preferential loan programme will clearly drive prices up again in the fourth quarter,

emphasised Dávid Valkó.

According to the chief analyst at OTP Ingatlanpont, average prices could increase by up to 20% nationwide over the course of the year, which suggests that prices are expected to rise faster than the 15% increase seen in the second quarter. Based on the current trend, the Hungarian housing market could experience the highest price increase in Europe during the second half of the year.

"Meanwhile, the gap between house price and rental fee increases may widen further,

as we expect rental costs to stagnate or even decline amid strong inflation, with more people choosing to buy their own homes due to favorable credit conditions, thereby reducing demand for rentals," the analyst added.

Cover image (for illustration purposes only): Getty Images