Hungarian house prices fell by 1.4% in the second quarter of 2026, marking their first quarterly decline since late 2022 and the steepest drop among European countries. Prices are still 10.2% higher than a year ago, but the slowdown in demand and more moderate rent increases suggest that the market is losing momentum.
Hungary’s housing market has taken an unexpected turn, with residential property prices falling for the first time in more than three years. According to fresh data from Eurostat, prices dropped by 1.4% between the first and second quarters of 2026, the largest quarterly decrease recorded among the European countries surveyed.
The decline marks a significant change after years of rapid price growth that placed Hungary among Europe’s strongest-performing housing markets.
France was the only other country to record a quarterly fall, with house prices slipping by 0.8%. Elsewhere, prices continued to rise, led by Lithuania, where residential property became 5% more expensive in just three months. Bulgaria and Romania also recorded substantial increases of 4.5% and 4.4%, respectively.
Despite the recent decline, Hungary’s housing market is still considerably more expensive than a year ago.
Annual house price growth slows sharply
In the second quarter of 2026, Hungarian residential property prices were still 10.2% higher than in the same period last year. This was more than double the European Union average of 4.7%. However, the annual increase represents a considerable slowdown compared with the more than 20% growth recorded towards the end of 2025.
Hungary has consequently slipped from the top tier of European housing markets to the middle of the rankings. Only eight countries recorded faster annual price increases than Hungary. The latest figures suggest that the market’s strong upward momentum is easing, although the quarterly decline alone does not establish whether a sustained fall in prices is beginning.
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Did the Home Start programme fuel the property boom?
According to Dávid Valkó, chief analyst at OTP Ingatlanpont, one of the most significant developments in Hungary’s housing market in recent years was the launch of the Home Start subsidised mortgage programme in September 2025. The scheme offers eligible buyers a fixed interest rate of 3%, helping some households finance their first home.
Valkó told Telex that the programme triggered an initial surge in demand in autumn 2025, followed by another, smaller wave at the beginning of 2026. Interest in purchasing property then declined noticeably during the spring months.
The timing suggests that the programme helped stimulate demand, although the latest Eurostat figures alone cannot establish how much of the price movement was caused by the scheme.
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Rental prices are rising more slowly than house prices
Another notable development is the growing gap between the cost of buying a home and the cost of renting one. While house prices remained 10.2% higher year on year in the second quarter, rents increased by just 4.2% in real terms, after adjusting for inflation.
The Home Start programme may also be contributing to this difference. With eligible buyers able to access mortgages at a fixed 3% interest rate, some households may find purchasing a property more attractive than continuing to rent. If more people move from renting to homeownership, demand for rental properties could weaken, putting a brake on rent increases.