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Average asking prices reached HUF 2.028 mln/sqm in Q1, up 1.6% from the previous quarter and 9.9% higher year on year. In the premium segment, prices have climbed as high as HUF 3.7 mln/sqm.
“The HUF 2 mln per square meter level has now become a benchmark in Budapest’s new housing market,” said Gábor Soóki-Tóth, head of analysis at Otthon Centrum, adding that expanding supply has so far failed to ease price pressures.
The pipeline of new developments remains robust. Around 31,500 homes are currently under construction across 373 projects, marking a five-year high. In addition, sales have not yet started for roughly 4,200 units, while construction began on 45 new projects in the past quarter alone, covering more than 2,800 homes.
Prices remain highest in central and Buda hillside districts. In District V, average asking prices reached HUF 3.74 mln/sqm, followed by District II at HUF 3.7 mln and District XII at HUF 3.57 mln. District I has also crossed the HUF 3 mln threshold, underscoring the clear separation of the premium segment from the broader market.
At the same time, price increases are no longer limited to prime locations. In most inner-city and Buda districts, average prices now exceed HUF 2 mln/sqm. District VI recorded HUF 2.5 mln, District VII HUF 2.45 mln, while Districts III, XI and XIII were all around HUF 2.1 mln.
Sub-HUF 2 mln prices are becoming increasingly rare in well-located areas. On the Buda side, only District XXII remains below that level, while on the Pest side, Districts VIII and IX still offer some new homes under the threshold.
In outer Pest districts, prices remain lower but are also on an upward trend, typically ranging between HUF 1.1 mln and HUF 1.8 mln/sqm. District XVI recorded the lowest average at HUF 1.1 mln, while District XIV, at HUF 1.79 mln, is approaching the HUF 2 mln mark.
Development activity continues to be concentrated geographically. District XIII leads by a wide margin, with 76 projects and around 10,100 homes under construction. District XI ranks second with 49 projects and 6,600 homes, while District XIV and District IX also rank among the leaders in project and unit numbers.
According to Soóki-Tóth, rising construction costs, land prices and financing conditions are continuing to drive price increases. He noted that a clear trend is emerging in which both supply and prices rise in parallel, meaning the HUF 2 mln/sqm level is no longer a ceiling but a starting point in Budapest’s new housing market.
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