The supply of affordable housing across Europe emerged as one of the main topics at panel discussions at Expo Real in Munich this fall. The housing stock in Hungary is seen as under strain due to increasing demand and relatively low supply. Rising prices have prompted concerns over the growing affordability gap, prompting the Hungarian government to introduce programs to alleviate this, most notably its Home Start scheme, which was launched on Sep. 1.

The leasing market is also growing, with the private rented sector seen as a promising area for investment.

Investor activity has been revitalized, and there is a significant pipeline of ongoing constructions being stimulated by new government measures, says Géza Germán, deputy CEO at the leading Hungarian architecture, engineering consultancy and project management firm, Óbuda Group.

With the government launch of the Home Start Program, which aims to enable first-time buyers to access subsidized loans for residential purchases, a rise in both home sales and, possibly, prices is expected. Concerning housing delivery, the government’s Housing Capital Program is designed to support the construction of new housing and significantly expand the stock of high-quality residential real estate in Hungary.

Reflecting the growing residential demand in the country and the resulting development and investment possibilities for the sector, several developers are active in the residential market in Budapest and, increasingly, in provincial cities beyond the capital.

The residential consultancy Duna House expects a 10-20% rise in residential prices and transaction volumes for the year. The outlook for the sector is seen as encouraging due to the macroeconomic factors, market conditions, and governmental measures and their probable favorable impact. However, the widening gap between demand for housing and the sluggish pace of supply continues to put pressure on home prices and further limits housing affordability.

Biggeorge Property (BGP) had around 1,600 units under construction this summer and land for a further 2,500-plus apartments. Looking ahead, the company’s project pipeline is set to expand further, with new launches scheduled into 2026 and 2027, reflecting sustained market momentum, according to Petra Demetrovits, sales director at BGP. 

“Taking into consideration all feedback from potential clients and buyers during the planning procedure, successful projects need to offer sustainability: energy-efficient designs, green roofs, renewable energy systems, and eco-friendly materials are now baseline expectations,” she tells the Budapest Business Journal.

Buyers’ Wish List

Other requirements include open and green spaces, with landscaped parks, communal gardens, playgrounds, and outdoor fitness areas highly valued. Modern technology calls for the integration of smart home features, app-controlled systems, and digital community management tools. Safety and security are another priority, with 24/7 surveillance, secure entry systems, and well-lit communal areas, Demetrovits says. Mixed-use elements are also critical.

“Projects increasingly blend residential with retail, sometimes office space, playground, and outdoor fitness areas, fostering vibrant, walkable communities,” she adds.

BGP currently has more than 800 apartments on offer. The construction of the Árnyas 40 Villa Suites project is well underway, with a projected handover deadline next year. The development features six four-story villa buildings spread across a two-hectare site in Budapest’s District XII. Pre-sales of the project had reached 65% by mid-October, according to BGP.

Another of its developments, Cosmo Residence, in District XIII, is also under construction, with a planned completion date of 2027. The complex will deliver 231 apartments on eight floors, as well as 15 ground-floor retail units; pre-sales of Cosmo Residence units also stood at 65% in mid-October.

The leading commercial property developer Wing has acquired a 10,900 sqm development site in Debrecen. Under its residential development brand, Living, the company plans to build around 400 modern, energy-efficient apartments in several phases.

“This will be the company’s first residential development outside of Budapest, addressing the strong demand in the local real estate market and significantly contributing to the expansion of new housing supply in Hungary’s second-largest city. The project is set to launch in the second half of 2026,” the firm says.

The vast majority of the apartments will be available through the favorable loan schemes of the Home Start Program, with the project being realized with the support of equity investment won through the Housing Capital Program.

Important Milestone

“This completed transaction marks an important milestone for Living, as it enables us to launch our first residential development outside of Budapest,” says Tibor Tatár, head of Wing’s residential and office development businesses in Hungary.

Mixed-use developments, combining apartments with retail, services, and sometimes office space, have become a defining trend in Hungary’s urban property market. These projects are seen as resilient, offering built-in community, convenience, and adaptability to changing market conditions. BGP’s flagship projects, such as Waterfront City, exemplify this approach, integrating living, shopping, leisure, and workspaces in walkable environments. Cosmo Residence and the Westside Grand and Westside Garden projects include great location retail units, according to Demetrovits.

Another leading Hungarian residential developer, Cordia (part of the Futureal Group), is constructing its latest large-scale urban rehabilitation development on a 14-hectare former industrial area on the Pest side of the Danube in District XIII. According to the development plans, more than 2,500 apartments will be built in several phases with residential towers reaching 64 meters.

“We have around 15 towers planned, with one launched every year. Most apartments, with residential towers reaching 64 meters, will offer views of the Danube and the Buda Hills,” says Gábor Futó, co-founder of Futureal.

“The project will be served by direct metro connections, 10 minutes from the city center and more than 100 shops, restaurants, service facilities, and sports amenities. We see in this abandoned area a place where buildings have zero local carbon emissions and exceed the strictest, most forward-looking energy requirements. We have envisioned a neighborhood that provides all services locally,” he adds.

The first phase of Le Jardin residential park by Living has received its final use permit, and the handover of 165 apartments with “A+” energy rating has started. Living prioritized environmentally friendly and energy-efficient solutions, making it one of the first residential developments in Hungary to obtain a BREEAM “Very Good” certification in the design phase, according to Wing.

“Most new developments are making progress in energy efficiency and the use of renewable energy, due to regulations and rising demand for lower utility costs. When it comes to green certifications such as BREEAM and LEED, they are not widely used in residential projects yet. There is still room for improvement when it comes to sustainable design, long-term affordability, inclusive design, and transparency in planning and construction processes,” concludes Germán of Óbuda.

This article was first published in the Budapest Business Journal print issue of October 17, 2025.