The Hungarian real estate market is experiencing a significant transformation after the 1990s boom, with government securities becoming the most popular investment instruments in recent years. However, real estate remains the eternal favorite in Hungary. According to expectations, in the first half of 2025, HUF 1,200 billion in interest on government securities will be paid, and another HUF 900 billion in government securities will expire. The released capital can most likely end up in the real estate market.
The Hungarian real estate market has undergone significant changes after the real estate market boom of the 1990s. Although the global economic crisis of 2008 depressed the market, the revival of the economic environment and the interest rate environment, along with government subsidies, helped the market recover. Property prices have risen dramatically, especially in Budapest and larger cities, due to the supply-demand imbalance and low loan interest rates.
More than 80% of Hungarians would buy their own property, but the change in market conditions has made it difficult to buy real estate, just like in the West. Since the regime change, government securities have provided stable and safe returns for investors. The accession to the EU further increased Hungary’s creditworthiness, and the introduction of the Hungarian State Paper Plus (MÁP+) in 2019 made ordinary people choose this widely available form of investment in greater proportion.
However, the investment instruments that the government likes to advertise will significantly complicate the budget planned for 2025. According to expectations, between January and May 2025, capital and interest payments of HUF 3,000 billion will be charged to the state coffers, of which the state has to pay HUF 1,800 billion only for the premium government securities.
Ingatlan.com’s analysis reveals that in 2025, real estate experts expect a price increase of at least 10-15%. The 8% price increase measured in the big cities and the Northern Great Plain is considered outstanding. The increase in traffic may be primarily behind the further increase. Up to HUF 800 billion of the HUF 3,000 billion of government securities maturing next year may be deposited in the real estate sector, as it is the “favorite” of Hungarians.
The situation is aggravated by the fact that from 2025, pension savings accounts can be opened tax-free if they are used by customers for housing purposes. All in all, the portal with at least 145,000 sales it even counts as referring to airbnb apartments strictures they can curb the further growth of the real estate market.
