What Drives the Real Estate Market Today? – Key Trends to Watch

The real estate market is constantly evolving, influenced by economic, social, and technological factors.

In 2025, both the Hungarian and European markets are shaped by smart buying behavior, sustainability, and the rise of digital tools.
Let’s take a look at the major forces currently driving the property market.

1. Economic environment and interest rates

After years of inflation, interest rates remain a key driver.
As rates gradually decrease, more buyers are returning to mortgage financing.
Easier access to credit is expected to boost demand, especially in the mid-range urban property segment.

2. Energy efficiency and sustainability

Buyers are becoming more conscious of running costs and environmental impact.
Demand is rising for modern, energy-efficient homes, while older, poorly insulated properties are losing appeal.
“Green” new builds not only reduce utility bills but also offer better long-term value stability.

3. From cities to suburbs – and back again

During the pandemic, many people moved to the suburbs seeking more space, but interest in urban living is returning.
Good infrastructure and accessibility keep suburban areas attractive, yet convenience and culture draw buyers back to the city.

4. Digital sales and virtual showings

Real estate marketing has gone digital.
Buyers now expect virtual tours, video walkthroughs, and online offers.
Agents increasingly rely on data, social media, and online strategy — offering a personalized, tech-driven experience.

5. Return of foreign investors

As exchange rates stabilize and Hungarian property prices remain lower than the EU average, foreign investors are returning.
Budapest, Lake Balaton, and Northern Cyprus are among the top hotspots for international buyers.

Summary

Today’s market is driven by economic stability, sustainability, digital transformation, and smarter consumer choices.
Sellers and investors who adapt early to these trends will gain a significant advantage in the coming years.