Hungary’s housing market showed generally improving dynamics in Q1 2026, with a modest rise in completed dwellings and a sharp increase in construction permits, according to the Central Statistical Office (KSH).
A total of 2,821 new dwellings were completed in the first three months of the year, representing a 4.3% increase compared to the same period in 2025. At the same time, the number of dwellings authorized for construction surged by 64% to 9,291, signaling strong pipeline growth for the sector.
Growth in completed housing was uneven across settlement types. The number of dwellings put into use rose by 13% both in Budapest and in towns with county rights, while other towns recorded a more modest 1.2% increase. Villages were the only category to see a decline, with completions falling by 9.8%.
Housing construction in the capital remained highly concentrated. Of the 955 new dwellings completed in Budapest, 87% were located in just three districts: District XIII (294 units), District X (278 units), and District XI (256 units).
Regionally, construction activity expanded in Central Hungary and in three additional regions, most notably in the Northern Great Plain, where completions rose by 69%, and in the Southern Great Plain, where they increased by 64%. However, declines were recorded in Northern Hungary, Western Transdanubia, and Southern Transdanubia.
Developers continued to dominate the market, accounting for 66% of completed dwellings, while private individuals built 34%. Detached houses made up 54% of newly completed homes, compared to 42% in multi-storey apartment buildings and a marginal share in residential complexes.
The average floor area of completed dwellings increased to 98.9 sqm, up by 4.3 sqm year-on-year. In Budapest, however, the average size remained significantly lower at 65.3 sqm. Two-thirds of new homes were built for sale, while one-third were intended for owner occupation.
Number of Construction Permits Rise Sharply Across All Settlement Categories
Forward-looking indicators point to a significant pickup in activity. The number of construction permits rose across all settlement categories, with particularly strong growth in towns of county rank (up 92%), smaller towns (80%), and villages (99%). In Budapest, 3,634 dwellings were authorized for construction, a 36% increase compared to a year earlier, with more than half of planned developments concentrated in District IX and a further fifth in District XIII.
Among major cities, Kecskemét and Nyíregyháza stood out with 538 and 363 permitted dwellings respectively, while Győr, Debrecen and Miskolc each recorded between 100 and 200 new permits.
Nationwide, the number of planned residential buildings rose by 75% to 3,225, while permits for non-residential buildings increased by 18% to 767. Builders used the simplified declaration procedure in 28% of cases.
The sharp rise in permits suggests a strengthening construction pipeline, although the divergence between modest completion growth and rapidly increasing approvals indicates that the sector’s recovery is still at an early stage.
