Hungary’s housing market sent mixed signals in 2025: fewer homes were finished, but far more were greenlit for future construction. According to Central Statistical Office data, 12,062 dwellings were completed last year, down 9.3% versus 2024, while the number of homes authorized through building permits and simple declarations surged 37% to 28,081.
Nearly one in three new homes in 2025 was built in Budapest, even though completions in the capital dropped 14% year on year. Towns with county rank saw an even sharper 26% decline, and villages fell 6.6%. The only segment in positive territory was smaller towns (non–county seats), where completions rose 8.9%.
Housing delivery in Budapest remained highly concentrated. Of the 3,949 homes completed in the capital 62% were in just four districts: District XIII – 732 units, District IX – 636 units, District VIII – 631 units, District XI – 458 units.
Regionally, completions increased 8.2% in the Pest region, 8.8% in Southern Transdanubia and 3.9% in Western Transdanubia, while other regions posted declines. Outside Budapest, higher numbers of new homes were recorded in major cities like Nyíregyháza, Kecskemét and Szeged.
Homes built for sale gain share
Private individuals slightly reduced their role in new housing. Their share of completed homes slipped from 38% to 36%, while enterprises increased their share from 61% to 64%, confirming that developers are once again driving the market.
In terms of typology, detached houses accounted for 51% of new residential units, multiunit buildings for 39% of total, and residential complexes for 6.5%. The average size of a completed home edged down by 1 square meter to 95.6 sqm nationwide. In Budapest, where apartment construction dominates, the average was just 71.3 sqm.
On the demand side, properties built for sale strengthened their position. Homes intended for sale accounted for 64% of completions, while those built for owner-occupation represented 34%, a swing of about 3 percentage points toward the developer-led, for-sale segment.
Strong signal for future supply
While completions dipped, permits exploded, setting the stage for a construction rebound. Nationwide, the number of authorized dwellings jumped 37% to 28,081. Budapest led the way with 10,959 dwellings permitted in the capital, up 56% year on year.
Builders opted for the simplified declaration route in 27% of cases. In total, permits were issued for 10,228 residential buildings, up 18% from 2024, while authorizations for nonresidential buildings fell 16% to 2,975.
Outside Budapest, the number of permitted homes rose 56% in towns with county rank, 18% in other towns and 13% in villages. Among larger provincial cities, two stood out, Debrecen – 926 permits, and Szeged – 864 permits.
