Why Q1 2026 Is the Right Time to Sell Investment Property in Budapest

Budapest’s residential market is entering a critical window — one where timing matters more than ever. For investors considering an exit, Q1 2026 presents a rare alignment of policy, demand, and sentiment that strongly favours sellers.

Below we explain why now is an unusually attractive moment to sell investment property in Budapest, and why waiting may actually increase risk.

1. Government-Backed Demand Is Peaking

Hungary’s government has launched a new subsidised mortgage scheme offering fixed 3% interest rates for up to 25 years, significantly below current market mortgage rates, which typically sit above 6%.

This program has had an immediate impact:

· It has pulled forward buyer demand, particularly from first-time and price-sensitive purchasers

· It has increased urgency among buyers who fear the scheme may be changed or withdrawn after the April 2026 elections

· It has re-energised domestic buyers who were previously priced out by high interest rates

For sellers, this translates directly into more active buyers with stronger purchasing power — right now.

2. Transaction Activity Confirms Rising Buyer Momentum

Market behaviour is already reflecting this shift. Hungary’s largest property portal, Ingatlan.com, recorded over 2 million visitors in August, the highest level in more than four years and nearly 60% higher year-on-year.

This surge is not theoretical — it is showing up on the ground:

· Well-located apartments are selling with less negotiation

· Price reductions are becoming less common

· Buyer urgency has increased noticeably compared to 12 months ago

In practical terms, seller bargaining power has strengthened.

3. Election-Cycle Risk Makes Timing Crucial

Housing policy has become a political tool across Central Europe, and Hungary is no exception.

Similar pre-election subsidy programs in Poland led to:

· A short-term buying frenzy

· Rapid price inflation in major cities

· Followed by price corrections once subsidies were withdrawn

There is growing concern that Hungary may follow a similar path:

· Additional incentives could be introduced before April 2026

· Or, equally likely, existing programs could be scaled back or discontinued after the election

For investors, this creates a classic scenario: sell into strength rather than risk a post-election cooling period.

4. Price Caps Still Favour Most Investment Apartments

The government argues that the program will not overheat prices, citing eligibility limits:

· Apartments under 100 million HUF

· Houses under 150 million HUF

In reality, a large share of investment-grade apartments in central Budapest fall exactly within this range, meaning they are direct beneficiaries of the subsidy-driven demand.

This is particularly true for:

· 1–2 bedroom apartments

· Central districts (V, VI, VII, VIII, IX, XIII)

· Well-maintained resale units rather than oversupplied new-builds

5. Budapest Remains a Seller’s Market — For the Right Assets

While not every segment is equal, quality resale apartments in strong locations remain firmly seller-friendly:

· Demand exceeds supply in established central areas

· Domestic buyers are back in force

· Foreign buyers remain active where pricing makes sense

Importantly, buyer bargaining power has declined compared to recent years, and sellers are increasingly able to hold pricing.

This window may not stay open indefinitely.

The Strategic Investor’s Takeaway

For property investors, Q1 2026 represents a moment to exit at elevated demand levels, supported by state-subsidised credit and political urgency.

Selling now allows investors to:

· Lock in gains before policy uncertainty

· Avoid potential post-election volatility

· Redeploy capital into higher-yield or lower-risk opportunities

In property markets, timing is everything. Q1 2026 is about selling into strength — not waiting for certainty after the peak.

If you're thinking of selling and need an agent in Ireland reach out to Jack French on 087-2747057