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Real estate market situation 2025

2025-05-05
Not enough new real estate is being built, the real estate stock is outdated, and the rental housing market is fragmented.

The construction industry's capacity for new housing construction and renovation is currently underutilized, as there is not enough solvent demand. At least 25-30 thousand new homes would be needed in Hungary annually to ensure natural housing turnover, replace the aging stock and meet demographic needs. In contrast, only around 12 thousand new homes are expected to be built in 2024, which is far below the required volume.

 

The other major challenge is the modernization of the existing housing stock. According to the National Association of Building Contractors, approximately 250,000 apartments would need to be renovated in accordance with current energy and comfort level requirements. This would be important not only for energy efficiency goals, but also for housing quality and long-term sustainability.

 

The proportion of privately owned apartments reaches 90-95 percent, indicating an almost complete lack of a rental market. This could be an entry strategy for new investors.

 

 

Source: Housing, housing policy and housing in the 21st century conference

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