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What has driven property prices up the most in Hungary in recent years?

According to András Kármán, the flawed design of Otthon Start let prices run away. The government says Wekerle Plusz is needed because 57% fewer new homes were built in 2025 than in 2020, while prices rose 23.5%.

  • State-subsidised loans (Otthon Start) boosted demand
  • New-home construction collapsed, supply is scarce
  • Rising construction material and labour costs
  • Investors and speculators bought up homes
  • Inflation and wage growth, so there was no real price rise