Buying a house or a flat can be a good option if you are planning a long-term stay in Budapest. However, it is best to have the necessary documentation to avoid any hurdles in the process. Here is an insight into the local property market to help you make the right choice.
Property prices in Budapest
The prices of houses and flats are equally high in and around Budapest, with a significant increase across the board after the pandemic. This was in part due to supply-side shocks and exchange rate changes, coupled with massive government subsidies for first-time homebuyers. As a consequence, Hungary's relative price gap compared to neighboring countries (and especially that of Budapest compared to nearby capitals like Vienna or Prague) has greatly diminished.
Apartments in the city center now are offered at 1.5-2.2 million HUF per square meter (or 4-5,000 EUR), with the V. district being the most expensive. On the Buda side, the I. district and the premium residential areas of the II. and XII. districts come in at square meter prices exceeding 2 million HUF, or 5,000 EUR.
Entry-level prices have increased even more significantly on account of the aforementioned government subsidies. At around 50-60 million HUF, you can only get a small studio in the city centre, or a property in need of full renovation. For a decent one-bedroom flat, you would need at least 70-80 million; the price of two-bedroom apartments starts from 90-100 million, with new-build projects commanding a premium even above this.
If you are planning to buy a house in Budapest, the situation is even more difficult, as you either have to spend a lot on renovation if you get a cheaper house, or move further away from the city center. Prices for a house with two bedrooms and at least 50 m² are at least 80 million on the outskirts. For a more central or Buda location, you have to pay at least 150-200 million HUF.
Where to buy property in Budapest
So, where should you buy property in Budapest as of 2026? For investment or rentals, the city centre remains king (V./VI./VII.), but make sure you're aware of the new, stringent regulations regarding short-term rentals. District VI. has banned short-term rentals entirely as of January 1, 2026, and other municipalities have also restricted the issuance of new licenses, with potential further tightening to follow. If you plan on short-term letting, be sure to check local bylaws carefully, as this is a developing situation as of the time of writing.
Family-friendly and green areas like the II. and XII. districts on the Buda side or XIV. in Pest offer a comfortable living environment. Rapid growth areas are District VIII., IX., and XIII.: these offer the best price-to-value ratios at this time.
Check out some of the property websites below for prices and availability:
How to buy property in Budapest
Anyone can buy a residential property in Budapest, but non-EU/EEA citizens will need to get a permit first. The application costs 65,000 HUF (160 EUR) and takes one month to get. This is largely a formality.
Hungarian law requires that real estate purchases shall be concluded through a private contract (purchase agreement), which must be countersigned by a lawyer. Typically, the lawyer represents both parties legally, with the buyer paying for the services.
The most important steps for buying a property are below:
Once you have chosen a property, negotiate the price. Real estate agents usually overvalue their listings, and with a bit of effort, you should be able to track down the original advertisements posted by the owners themselves, which can save you the agent's fee.
You are highly advised to hire a lawyer/solicitor to assist you in relating procedures. The lawyer represents not only the buyer but also the seller. However, fees are paid by the buyer. Title searches are usually included in the services lawyers offer, so make sure to inquire beforehand.
A structural and/or architectural survey of the apartment and building is also recommended in case you are purchasing an older property.
Once the buyer and the seller come to an agreement, the lawyer is responsible for securing local government approval of the purchase (unless the buyer is setting up a company). Title search and property valuations are then set in motion.
With proof of income and residence, you will be able to secure mortgages as an expat, though it is highly recommended to reach out to a mortgage broker for better deals. Loans are almost exclusively issued in HUF, and banks are limited to lending to 80% of the property's value, and will often go lower than that depending on the specifics of the deal.
Banking and Finance in Hungary https://www.expat.com/en/guide/europe/hungary/19148-banking-and-finance-in-hungary.html
When the title has been declared clear from encumbrances, the lawyer then drafts the purchase agreement. This written contract, countersigned by the lawyer, is necessary to validate the transfer of property. The lawyer then arranges a meeting between the buyer and the seller for the signing of the contract.
A deposit of 10% of the agreed price is made as a down payment by the buyer. If you back out, you lose this deposit; if the seller backs out, they usually must repay you double. After signing the contract, the buyer also has to pay the lawyer´s and agency fees. Note that the purchase agreement has to be submitted to the nearest land registry office within 30 days of signing.
The closing of the deal usually takes place 60-90 days after initially signing the Purchase Contract. The buyer is responsible for informing the seller immediately after receiving the purchase permission from the government office.
The purchase is then concluded within a week. The buyer and the seller have to sign a Closing Statement, which confirms that the purchase price has been settled in totality and the possession has been transferred. However, final registration of ownership rights can take up to six months, even if the buyer is in possession of the property.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
