The Otthon Start program (“Home Start”) has boosted demand while regulating supply with a price cap. Loan applications have already exceeded 15,000, and 12 major new housing developments have been launched nationwide, reports Világgazdaság citing MBH Elemzési Centrum. In the coming years, the expected wave of completions combined with the price cap may curb rising prices in Budapest while allowing for price growth in regional areas.
Following the loan program’s launch, demand surged: in 2025, approximately 10,000 newly built apartments were sold, the highest number in the past decade. However, the majority of concluded loan agreements still relate to existing homes, with purchases of new apartments accounting for only 5–6 percent. Market experience shows that more buyers are waiting and leaning toward new builds.
In the coming years, as many as 50,000–60,000 new homes could enter the market.
On the supply side, a key role is played by the legal framework for designated major developments: projects with at least 250 apartments that meet the program’s price-per-square-meter limit can proceed through an accelerated approval process. This is reinforced by the new condominium development law, that allows the sale of apartments still in the planning phase. Currently, buyers can choose from over 2,100 new apartments that meet program criteria, with supply particularly expanding in regional centers.
Photo: MTI/Czeglédi Zsolt
Geographically, developments are concentrated in Budapest and the Western Transdanubia region. The most common apartment size is 41–60 square meters, aligning well with the price cap and demand. A larger wave of completions is expected around 2027–2028, although construction capacity may pose constraints.
The program also forces developers to adapt: the HUF 1.5 million (EUR 3,960) per square meter price cap narrows margins, especially in pricier central locations.
As a result, medium-sized, cost-efficient, energy-efficient—but not premium—apartments are being built, primarily in large housing estates and outer city districts.
Price trends vary across regions. In Budapest, prices rose sharply in 2025 but slowed in the second half of the year. In contrast, regional centers have seen more sustained growth, though the average price per square meter remains below the HUF 1.5 million threshold. Some 35–40 percent of buyers are first-time homeowners, while investment-driven transactions have decreased, indicating that the program is meeting its original goal.
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Via Világgazdaság, Featured image: MTI/Illyés Tibor
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