Investors are starting to pull out of the Hungarian housing market

The proportion of investment purchases within the total national turnover was around 23% for the year as a whole, falling from nearly 27% at the beginning of the year to below 21%. This decline accelerated mainly during the summer months due to a combination of persistently high interest rates, rising prices and an unfavourable risk-return ratio. Investors increasingly focused on smaller apartments that were easy to rent out. The median floor space of purchases was around 55 square metres, the median purchase price was HUF 40–45 million, and unit prices exceeded the market average. Budapest continued to dominate in terms of location.

Around 35% of transactions in the capital and about 23% of transactions in rural areas were for investment purposes.

Price increases in Budapest and stable rental demand further reinforced this concentration. In terms of age, there was little investment motivation among 20–30-year-olds, whereas more than a third of purchases by those over 40 were for investment purposes, typically involving buyers with substantial capital and less reliance on credit.

However, activity increased on the seller side: sales of investment properties in Budapest rose by 35%, while in the provinces they rose by 26%, with an increase seen from quarter to quarter. The national average price of properties sold for investment purposes was HUF 50–55 million, equating to around HUF 900,000 per square metre. From the second half of 2025 onwards, the Home Start Programme clearly reshaped the investment landscape, with the proportion of investment purchases decreasing in Budapest and stagnating in rural areas.

Subsidised fixed-rate loans boosted demand for owner-occupied properties in the capital's entry-level segment, limiting opportunities for investors. Meanwhile, the proportion of properties acquired for investment purposes and subsequently sold in Budapest increased by around 5 percentage points in the second half of the year. This suggests that

many owners took advantage of the demand stimulated by the home Start Programme to exit the market.

According to Duna House, investors' room for manoeuvre in 2026 may be shaped by a combination of moderating inflation and subsidised loan programmes. The proportion of purchases for personal use is expected to grow, limiting investment opportunities offering lower prices and good returns. Consequently, decisions may become even more cautious, with an emphasis on stable rentability, good location and predictable returns.

"Based on the 2025 data, it is clear that investors have not disappeared from the market; they have simply adapted. They have bought less, but have taken advantage of recent price increases to exit strategically. In 2026, it is the quality rather than the quantity of investor transactions that is expected to be decisive. We anticipate fewer, but more targeted, transactions," said Péter Szegő, senior analyst at Duna House.

Cover image (for illustration purposes only): Portfolio