Hungarian real estate market outlook: what to expect in the next 12 months?

Is there a prospect that the Hungarian real estate market prices will drop in the next 12 months by spring 2024? The following economic trends will determine the fate of the market. 

What could the Hungarian housing market look like in the next 12 months? Portfolio presented this question to several real estate experts in their Housing Market Attitude survey to map the potential scenarios.

As we have previously written, the Hungarian real estate market is currently stagnating. The prices have reached their peak and demand cannot follow further increases. Due to the high inflation and interest rates, potential buyers won’t apply for loans, therefore, they must turn their attention to the rental market.

But what will the real estate market look like in 12 months regarding new home purchases? The fact that the price growth fell below the expectation of the analysts is surprising, but a real turnaround might not be a viable scenario in the following months.

Grim outlooks on the real estate market

On average, the 9 experts surveyed by Portfolio expect a slight, gradual decline in prices until mid-summer, followed by a painfully slow rise until April next year. It is likely that the stagnation will end, and prices will start to rise again when interest rates are low enough for people to seriously consider taking loans again, thus increasing market demand.