Double-digit price increase again for residential homes?

Written by Rainer Ackermann

Property prices are likely to rise by 14-17% this year.

This forecast was made by the experts at MBH-Hypothekenbank, who explain the expected price jump with falling interest rates, the population’s savings deposits being shifted to investments and the Orbán government’s continued generous subsidies on the housing market.

Demand already picked up in the fourth quarter of 2024, while new construction for the year as a whole was still pointing downwards. As supply is very unlikely to be able to keep pace with increasing demand in 2025, rising prices are virtually inevitable. The sharp rise in prices is by no means limited to Budapest, with higher price increases to be expected in rural areas in particular, where the labour market is also flourishing.