Budapest buyers have spent several years competing in a market shaped by limited supply and rapidly rising prices. That balance is beginning to change. Demand for new apartments slowed during the first half of 2026, while developers continued releasing record numbers of homes. Completed but unsold stock is growing, incentives are returning and asking prices for existing properties have declined for three consecutive months.
The market is not collapsing. Buyers simply have more choice and less reason to rush.
New-Home Sales Have Slowed
Around 3,300 new apartments were sold in Budapest during the first six months of 2026, according to OTP Jelzálogbank.
That was 25% fewer than during the previous six months.
The slowdown follows two unusually strong years. Approximately 8,800 and 8,700 new apartments were sold during the previous two years, producing the strongest annual results since 2017.
Part of that demand was brought forward. Capital released from maturing government bonds supported purchases early last year, while the launch of the Otthon Start mortgage programme encouraged another group of buyers to enter the market sooner.
Those effects are now fading, while high prices are making buyers more selective.
Supply Continues to Grow
Developers launched sales for approximately 5,950 apartments across 129 projects during the first half of 2026. That was the highest half-year figure recorded in nine years.
Among them were 25 newly launched projects containing more than 50 apartments. Eighteen contained more than 100 homes.
Around 9,500 new apartments are currently scheduled for completion in Budapest during 2026, close to two and a half times the previous year's total. OTP Jelzálogbank estimates that around 9,400 new apartments are already scheduled for completion in 2027, with another 7,400 expected across 2028 and 2029. The result is a market where supply continues to grow even as sales lose momentum.
Unsold Stock Is Building
By the end of June, around 900 completed new apartments were available for immediate occupation but remained unsold. That number increased by 40% in six months.
It is not close to the levels recorded after the 2008 financial crisis, when the completed unsold stock exceeded 4,000 apartments. However, it is one of the highest figures recorded during the past decade.
A further 9,300 apartments already under construction have not yet been sold.
Developers are responding with promotional offers and discounts worth several million forints.
"A slower sales market does not mean buyers have stopped wanting new homes," said Alex Markus, Chief Executive of City-Lets Ltd.
"It means they have more alternatives and more time to compare them. When supply increases faster than demand, developers have to work harder on pricing, specifications and incentives."
New-Build Price Growth Is Slowing
The slowdown in demand has not yet produced a general fall in advertised new-build prices.
Apartments scheduled for completion in 2027 are currently marketed at an average of approximately HUF 1.85 million per square metre. For homes due in 2028, the average rises to around HUF 1.9 million per square metre.
According to OTP Jelzálogbank, price growth is moderating, while the increasing use of discounts shows that developers have less freedom to rely on headline price increases alone.
Pre-sales are also becoming less consistent. Approximately half of the apartments scheduled for completion in 2027 have already been sold. For developments due in later years, the sold share is currently closer to one-third.
Existing-Home Asking Prices Are Already Edging Down
The existing-home market is showing a clearer short-term correction.
Budapest asking prices fell by 0.1% in June, marking the third consecutive monthly decline. The last comparable run of at least three falling months occurred between October and December 2020.
Prices remain higher than a year ago. Budapest asking prices were still 8.7% higher than in June 2025.
The important change is momentum. Price growth is slowing, and buyers' ability to pay is placing a clearer limit on further increases.
According to ingatlan.com, the market is expected to remain in a period of consolidation over the next three to six months unless lower mortgage interest rates create stronger demand.
What Has Changed?
Budapest is not facing the level of oversupply seen during the financial crisis.
However, the relationship between buyers and sellers is becoming more balanced.
New-home demand has slowed. Supply continues to grow. Completed unsold stock is increasing. Developers are once again offering incentives, while asking prices in the existing-home market have begun to edge down.
For buyers, that means more choice, more time to compare properties and greater negotiating power than they have had for several years.
For developers and sellers, it means pricing can no longer rely solely on the momentum of previous years.