The package of measures announced in the 2027 budget, including the Wekerle Plusz programme and the extension of the reduced 5% VAT rate on new homes, could give Hungary’s housing market fresh impetus, property portal ingatlan.com told the MTI on Tuesday.
Hungarian government announced huge reforms for 2027
In recent months, demand for homes has fallen significantly short of previous peaks. Changes to the system of housing support could therefore bring buyers who have so far been holding back into the market again, benefiting both newly built and existing properties.
László Balogh, chief economic expert at property advertising portal ingatlan.com, said in a statement that retaining the reduced 5% VAT rate on new homes was crucial for the new-build market and residential property development, and consequently for the housing stock as a whole. He added that this was in line with previous expectations.
How the new housing scheme could help people
The expert also welcomed the planned launch of the Wekerle Plusz programme, under which homebuyers will be able to apply for fixed-rate loans on preferential terms. The interest rate will be 3% for newly built homes and 5% for existing properties. This means that purchases of newly built homes, as well as their construction, will continue to be financeable through loans at an interest rate of 3%.
For existing homes, however, the interest rate on subsidised loans will rise to 5%. As an example, ingatlan.com noted that, for a typical HUF 35 million (EUR 96,400) Otthon Start loan taken out over 25 years, this would increase monthly repayments by HUF 35,000–40,000 (EUR 96.40–110). Nevertheless, the rate would still be more favourable than publicly advertised market mortgage offers, which start at 6.25%.
Another important change to housing policy is that subsidised loans could become more targeted. Applicants would need to be under 41 and own less than 50% of a property. First-time buyers would also be required to move into the property they purchase.
The Wekerle Sándor Housing and Student Accommodation Construction Programme could also help expand the supply of housing. An initial HUF 30 billion (more than EUR 82.5 million) would be allocated to building homes and creating student accommodation places.
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Not just housing, but energy reforms as well
According to ingatlan.com, a new energy-efficiency renovation programme could encourage the modernisation of existing properties. Alongside a preferential loan of up to HUF 15 million (more than EUR 41,250), the scheme could provide a non-repayable grant of up to HUF 7.5 million (more than EUR 20,600). This could reduce the cost of maintaining homes and increase their market value.
One of the most significant changes could be the extension of energy-efficiency renovation support to people living in prefabricated apartment blocks.
István Kapitány, Minister for Economic Affairs and Energy, announced this on his Facebook page on Monday evening. Among other measures, he said that a multi-year home energy-efficiency renovation programme was being prepared, which could also create opportunities to improve the energy performance of flats in prefabricated blocks.
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More people could benefit from the programmes than before
In the statement, Balogh recalled that previous energy-saving programmes had been aimed at detached houses rather than flats in apartment blocks. More than one million people live in prefabricated flats, and these buildings are considered particularly energy-intensive. The programme could therefore trigger a new wave of home renovations in the coming years.
The Wekerle Plusz package will also see the return of a state-subsidised home savings scheme, which could help people planning to buy a property in the coming years save towards a deposit. The scheme could consequently provide additional support for future housing demand.
In its statement, ingatlan.com emphasised, however, that the precise impact of the housing policy measures announced on Monday could only be reliably forecast once the detailed terms and conditions of the programmes were known.
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