What happened? Housing prices in Hungary were already rising in early 2025.
Across the country, annual growth was generally between 13–16%. In several Budapest districts, increases were closer to 18–20% even before summer. In September 2025, the Otthon Start programme introduced widely accessible 3% fixed-rate mortgage financing.
A February 2026 market analysis estimated that the lower rate added roughly 6 percentage points to annual price growth in late 2025 compared with what growth would likely have been without Otthon Start.
For example:
- If a flat worth HUF 70 million rose by 12% in a year, its value would move to about HUF 78.4 million.
- If growth instead reached 18%, that same flat would move closer to HUF 82.6 million.
- The roughly HUF 4 million difference reflects the additional price growth linked to easier borrowing.
- Prices were already moving upward.
- Otthon Start increased how much buyers could borrow at the same monthly cost, and that extra flexibility pushed prices higher.
Where bidding pressure increased
Since autumn 2025, competition has been strongest in flats priced inside the Otthon Start limits:
Below roughly HUF 100 million
Under about HUF 1.5 million per square metre
In these price bands, more buyers can use subsidised financing at the same time.
In Budapest, this includes much of Districts XI, XIII, XIV, XIX and XX, along with outer Pest family-flat areas where renovated 50–70 sqm units typically trade between HUF 45–85 million.
In those areas, sellers began receiving stronger offers within months of the programme’s rollout.
Above the price caps, the effect has been weaker because the pool of eligible financed buyers is smaller.
A flat priced at HUF 95 million now competes in a different demand environment than one priced at HUF 110 million. That difference shows up in negotiation strength and time on market.
Why prices adjusted upward
The shift was simple.
When borrowing becomes cheaper, households can afford slightly higher purchase prices without increasing monthly payments.
When that happens across the market at the same time, buyers start offering more for the same flats.
If supply does not expand just as quickly, sellers respond by adjusting asking prices upward.
Otthon Start changed how much buyers could pay without increasing monthly strain.
Prices moved until that additional flexibility was absorbed.
Why Budapest reacted more quickly
Budapest responded faster than most regional cities.
Average prices in the capital are higher.
And the number of flats available for sale each month is limited relative to demand.
When additional borrowing enters a market where supply is tight, buyers compete more directly for the same listings.
In smaller cities, easier credit often increases transaction numbers first. In Budapest, it translated into price increases more quickly.
This has been most visible in:
- District XI family-flat areas
- District XIII mid-sized units
- District XIV residential blocks
- Renovated panel flats under HUF 70 million
In these parts of the city, pricing adjusted soon after subsidised financing became widely usable.
A clearer split in the market
Otthon Start has sharpened the divide between two parts of the market.
Below the programme’s HUF 100 million cap, the buyer pool widened.
Above that threshold, demand still depends mainly on standard mortgage rates and cash buyers.
If overall price growth was close to 18%, and about 6 percentage points came from buyers being able to borrow more, then a meaningful share of late-2025 price increases was linked to easier credit.
This does not mean higher-priced properties are weak.
It means the added demand pressure was concentrated in one part of the market.
Pricing has not moved evenly across Budapest.
Liquidity is not the same as quality
Cheaper financing increases the number of potential buyers in certain price ranges.
It does not improve building condition, layout or location.
A well-located flat inside the Otthon Start limits can attract multiple bids.
A poorly maintained unit in the same price range can still sit unsold.
The programme makes it easier to sell flats inside its price limits.
It doesn’t help weaker properties sell faster.
What should readers understand?
Housing prices were already rising before autumn 2025.
Otthon Start likely added around 6 percentage points to annual growth during the initial phase.
On a mid-market Budapest flat, that additional growth can equal HUF 3–5 million in one year.
The strongest pricing response has been below the programme’s HUF 100 million limit.
In Budapest, limited supply converted easier borrowing into faster price increases.
Easier borrowing helps explain why price growth picked up toward the end of 2025.
Supply, location and asset quality still determine long-term performance.
5 Practical Questions Buyers and Investors Are Asking
1) Are Budapest prices artificially inflated?
Part of recent growth reflects buyers being able to borrow more under Otthon Start rather than only organic demand.
2) Has Otthon Start made flats under HUF 100 million easier to sell?
Yes. Because more buyers can use subsidised financing in this price range, the pool of potential buyers is larger.
3) Are properties above HUF 100 million at a disadvantage?
Properties above the Otthon Start cap depend mainly on buyers using standard mortgage rates and cash buyers, and those buyers did not benefit from the same increase in borrowing ability.
4) If financing conditions tighten, where would pressure appear first?
In areas where prices rose mainly because buyers were able to borrow more.
5) Is the price impact of Otthon Start short-term?
As long as Otthon Start financing remains widely available, it continues to influence how