In spring 2025, the Hungarian housing market witnessed a significant decline in demand following a steep rise in prices earlier in the year.

Reports indicate that the number of casual home seekers has sharply decreased, though serious buyers have shown only a slight decline in activity.

After considerable price increases at the beginning of the year, several regions have started to see a drop in housing prices.

Real estate agencies reported a notable reduction in demand as of April, with some observing up to a 50% drop in inquiries compared to the beginning of the year.

A notable real estate platform indicated that fewer users searched for properties in April than in January; however, an uptick in activity was noted in May.

Market observers are questioning when these changes will reflect in housing prices.

Current data suggests that some regions are beginning to show signs of stagnation in price growth, although on a national average, prices still exhibit a mild increase, indicating that most sellers are hesitating to reduce asking prices.

From March to April, average listing prices increased by 1.7%, followed by an additional rise of 1.2% from April to May. It is also important to note that the composition of listed properties—covering variations in type, quality, and location—affects price trends.

In half of Hungary's regions, buyers encountered equal or lower prices in May compared to March.

Between the first and last months of spring, nine counties recorded falling listing prices.

However, differences between property types can influence these trends.

The most significant price drops occurred in Békés County, where listing prices decreased by 8% between March and May, followed by Vas County with a 6% drop.

Several traditionally higher-priced counties, such as Somogy, Veszprém, and Hajdú-Bihar, also experienced price reductions in the range of 2% to 5%.

Meanwhile, Győr-Moson-Sopron County maintained stable prices from March through May, even as half of the counties and Budapest saw price increases.

Budapest continues to command the highest average square meter prices at approximately 1.4 million forints.

This high pricing coincided with the largest decline in general inquiries—38%—during the March to April period.

In Somogy County, which ranks second in average pricing, a marked increase in square meter prices was noted in April, likely influenced by the higher proportion of properties near Lake Balaton.

However, prices returned to previous levels in May, though average prices in this region still hover around 1 million forints per square meter.

Other high-value counties include Veszprém, with an average price of 900,000 forints, and Pest, Hajdú-Bihar, and Győr-Moson-Sopron counties, where average prices ranged between 750,000 and 800,000 forints in May.

Baranya County recorded the most significant price increase over the past year, nearing the earlier surges seen in Csongrád due to planned industrial investments.

Both regions averaged square meter prices between 700,000 and 750,000 forints.

The next tier includes counties with average prices between 550,000 and 700,000 forints, highlighting Fejér at an average of 688,000 forints and Szabolcs-Szatmár-Bereg just below 550,000 forints.

Counties with the lowest average square meter prices typically range from 300,000 to 400,000 forints.

There have been noticeable shifts, as Nógrád County, once the lowest, has surpassed Békés County, possibly due to increased interest driven by Romania's Schengen accession.

This shift may also explain the 8% decline in average prices in Békés, due to a rise in listings for lower-priced properties in border areas.

Looking ahead, the primary consideration regarding future price trends is how quickly the demand decrease observed in April can rebound.

Should lower demand persist through the summer months, sellers may need to adjust their expectations regarding pricing to facilitate property sales.

Conversely, if the increase in inquiries observed in May continues, it may provide opportunities for further price escalations in the long term, following a period of intense price growth in recent months.