In July 2025, some important legislative and market developments in Hungary are reshaping the real estate landscape. Two of the most impactful are the introduction of subsidies for first-time homebuyers, and empowering local municipalities to regulate property acquisition more strictly — especially for foreign buyers and investors. These changes influence pricing, investment strategy, and both short-term and long-term rental markets.

July 2025 Real Estate Market Update & Key Developments (Hungary)

Introduction – What’s New in July 2025?

Key Changes

1. First-Home Buyer Subsidy Program

The Hungarian government announced a scheme providing approximately USD 443 million annually (around HUF 150 billion) to support first-time buyers with 3% interest rate subsidized mortgages.

Maximum loan amount: HUF 50 million,

Required down payment: 10%

This is expected to boost demand among younger households and those entering the market for the first time.

2. Enhanced Local Municipality Powers Over Property Acquisitions

From July 1, 2025, a new law known as the “protection of local identity” allows municipalities to pass local ordinances restricting real estate purchases, particularly for non-resident or foreign buyers.

This adds a layer of regulatory risk and variation depending on the specific municipality or district.

Impacts on the Real Estate Market:

Buyer Demand in the Housing Market

The subsidized mortgage program will likely spur increased interest in home purchases, easing the hurdle for those limited by down payment or high interest rates. Preference may shift towards properties that are eligible under local buying rules.

Investment Strategies

Foreign investors or those purchasing as non-residents will need to conduct thorough due diligence regarding local ordinances and restrictions. Municipal regulations may vary significantly — what’s allowed in one district may be restricted in another.

Rental Market Dynamics

Long-term rentals may become more favored over short-term rentals because of regulatory ambiguity and increased procedural burdens. Owners of properties traditionally used for short-term rentals might re-evaluate usage or consider transitioning to longer leases.

Possible Future Trends

Real estate prices may continue their upward trajectory, but properties that can comply with local regulations and ownership rules will be in higher demand.

Rental yields for legally compliant, properly permitted properties will likely outperform those in less stable legal situations.

Increased administrative and regulatory costs may reduce net returns for some property owners, especially those in districts introducing stricter rules.

Summary

July 2025 marks a turning point in Hungarian real estate: first-home buyer support and local government regulatory expansion are shifting the terrain. These developments affect not only prices and investor sentiment, but also how properties will be used — sale, long-term rental, or short-term letting.

Want to navigate these changes and optimize your real estate investments?

Reach out to the PRSTG Property Group experts — we can help you understand the regulatory landscape and find the right property that fits the new norms while maximizing value.