Budapest’s new apartment market is entering uncharted territory, according to the latest analysis from MBH Mortgage Bank, which incorporates the most recent 2025 data. The report focuses exclusively on condominium projects with at least four units.
Demand smashes multi-year records
After a sluggish 2023, when sales barely surpassed 3,000 units, the capital’s market roared back in 2024. In the last quarter alone, more than 2,500 new apartments changed hands, numbers unseen since autumn 2021.
Momentum continued into 2025. The first quarter set a fresh record with nearly 2,800 units sold, while subsequent months maintained volumes around 2,500. “Since 2016, we haven’t seen three consecutive quarters with more than 2,000 sales each,” noted Gyula Nagy, CEO of MBH Mortgage Bank.
Analysts attribute the surge partly to a demand wave triggered by maturing government bonds, an influx of newly launched developments, and revived investor appetite. Over half of all apartments sold in spring 2025 were under 50 square meters, prime targets for investors and first-time buyers alike.
Supply rises, geographic gaps widen
Developers have been equally active. In autumn 2024, over 3,000 units hit the Budapest market, and spring 2025 shattered previous supply records. By early June 2025, buyers could choose from 7,500 available units, up 14% year-on-year.
Of these, around 600 were already completed, with another 1,300 due for handover before year’s end. Yet the majority of stock consists of longer-term projects, with over 3,000 units slated for delivery between 2027 and 2028.
Apartment sizes vary sharply by district. In June 2025, the smallest offerings were in the 8th and 19th districts, averaging under 50 square meters. Other compact markets include the 9th, 21st, 10th, 13th, and 7th districts, all averaging under 57 square meters.
At the other end of the spectrum, the 2nd, 16th, and 12th districts boasted averages above 100 square meters. Overall, sold units tend to be smaller than those remaining on the market, a clear indicator of stronger demand for compact homes.
Prices accelerate, but new program may cool hotspots
Prices are rising fast. In Q2 2025, average square meter prices in Budapest were up nearly 16% year-on-year and 7.7% quarter-on-quarter. The priciest districts – 1st, 2nd, and 12th – now command 3 million forints or more per square meter. Inner Pest districts range from 2–3 million, while eleven outer districts still sit below 1.5 million.
The upcoming Otthon Start program, launching in September 2025, could redirect demand. With eligibility tied to a maximum price per square meter of 1.5 million forints, the initiative is expected to boost interest in more affordable segments rather than push citywide prices even higher.
