The domestic real estate market has experienced significant volatility in recent times. Following the interest rate hike shock between 2022 and 2023, financing conditions began to improve. The turnaround was brought about by the Otthon Start Program (OSP), which launched in the fall of 2025 and provided a completely new boost to demand in the market.
Price Spikes and the Current Slowdown
In terms of prices, 2025 was a standout year, as housing prices rose by 23.5 percent in nominal terms nationwide. As a result, according to an analysis by the Hungarian National Bank, a significant fundamental overvaluation had developed in the market by the end of 2025. By the fall of 2026, however, the price increase appears to have normalized. In August 2026, the annual rate of increase in housing prices had slowed to 11.5 percent nationwide and to 6.7 percent in Budapest. In fact, on a month-over-month basis, a minimal price decline of 0.1 percent was observed in the capital.
Transaction Numbers and the Rise of Rural Areas
Volume totaled 152,000 transactions in 2025, representing a 3 percent increase compared to 2024. The first quarter of 2026, however, already showed an 18 percent decline year-over-year, and a total of approximately 125,000 sales are expected by the end of the year. An interesting trend is that an increasing proportion of transactions is shifting to rural areas: while 78–80 percent of transactions took place in rural areas in 2023, this proportion has now risen to 82–84 percent. Meanwhile, the supply of new apartments also expanded in 2026, although construction costs and regulations continue to pose constraints.
Who is shopping right now, and what are they buying?
The Otthon Start Program has significantly reshaped the buyer demographic in just one year. This is particularly true in Budapest, where the proportion of first-time homebuyers jumped from 25 percent to 40 percent. Lending has also surged dramatically: by the first quarter of 2026, subsidized loans accounted for 81 percent of all home loans, and the share of homes purchased with loans exceeded 60 percent of the total market.
New Challenges for Salespeople and the Industry
By the summer of 2026, the initial, extraordinary demand-boosting effect of the OSP had faded from the market. Although the market remained active, prospective buyers became much more selective and price-sensitive amid the growing supply. Currently, setting a realistic asking price and proper market positioning have once again become key issues. Bridging the gap between sellers„ ”ask price” and the actual market price has once again become a serious business challenge. The market is becoming increasingly fragmented based on location and property type, creating a growing need to interpret real market information and reduce transaction risks.
Source: Corvinus University – Real Estate Management Program Course: Sales Management