Here’s why Budapest real estate remains a bargain by European standards

Budapest’s real estate market is heating up, with house prices in the Hungarian capital rising faster than almost anywhere else in the European Union. Yet despite this sharp increase, real estate in Budapest remains among the most affordable in Europe’s major cities.

Hungarian real estate market’s performance

As Portfolio reports, the Hungarian real estate market, particularly in Budapest, has seen a notable surge in house prices over the past year. Hungary outpaced most of its European Union counterparts with nearly a 13% year-on-year rise in the fourth quarter of 2024. While the broader Central and Eastern European region also witnessed substantial growth, Hungary’s figures remain the highest among the Visegrád countries. A comparative analysis of actual house prices, rather than indices, was conducted across 30 major European cities to provide a clearer context.

Average property prices in Europe

When comparing average property prices per square metre, Budapest still ranks among the more affordable capitals, especially in its city centre, where prices hover around HUF 1.5 million (EUR 3,674). This contrasts starkly with Western European hubs like Zurich and London, where similar properties reach HUF 9 million (EUR 22,036) and HUF 7-8 million (EUR 17,139-19,587), respectively. Even within the region, cities like Prague and Warsaw have surpassed Budapest in price, highlighting rising demand and smaller high-density areas driving up local real estate costs. Conversely, cities like Athens and Bucharest remain cheaper, while war-torn Kyiv records the lowest figures on the continent.