Demand for Used Apartments Declines in Favor of Modern New Builds

The Hungarian housing market is currently experiencing a shift in priorities. While demand for used properties is noticeably declining, new construction projects—especially single-family homes—are experiencing significant growth. New legal regulations on building law for apartment buildings from 2026 onwards also promise a further modernization push for the financing of housing.

As current data from the ingatlan.com site shows, interest in buying used apartments slumped by more than 25% in the first six weeks of the year compared to the same period last year. The picture is completely different in the new-build segment. Here, a dynamic increase can be observed.

Depending on the type of settlement, interest in newly built houses rose by 21 to 43%.

Overall, demand for new apartments and houses this year is already 75% above the 2023 level and 26 percent above the start of 2024. This means that the segment has almost returned to the previous year’s level (only an 8% difference).

A key driver for future development is a change in the law that will come into force on March 1, 2026.

The new “building law for multi-family houses” enables buyers to secure financing for properties as early as the planning phase, “from the drawing board.”

László Balogh, chief economic expert at ingatlan.com, explained the advantages:

• Early creditworthiness: Buyers can become creditworthy even before construction begins.
• Gradual disbursement: Subsidized loans can be disbursed in the future according to construction progress.
• Housing Security for banks: The buyer’s registered right serves as reliable security (lien) for the banks.

As the expert confirms, the innovation not only increases security for private buyers, but could also ease the pressure on square meter prices through more favorable financing conditions for developers.

The construction of single-family and semi-detached houses is also gaining new momentum.

Since the announcement of the Otthon Start (government-backed home loan available to individuals purchasing their first home) subsidy program in July, the number of monthly building permits for single-family homes has risen steadily to over 700. Since such construction projects usually take 12 to 18 months to complete, the industry expects a significant increase in completions by the end of 2026.

In the major metropolitan areas, prices for existing properties and new builds have now converged significantly. As a result, more and more buyers are opting for new builds. Experts therefore do not expect a major price slump in the second-hand market from the end of the first quarter, but rather significant stagnation or at least a marked slowdown in price increases.

Via MTI; Featured image: MTI/Illyés Tibor

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