Wekerle Plusz housing program may drive residents out of Budapest

The Hungarian government introduced the Wekerle Plusz program to provide subsidized loans for new and used real estate, potentially accelerating the migration of people from Budapest to the surrounding suburbs.

The new program replaces the Otthon Start Program, which offered a 3 percent fixed interest rate to all ages for both new and used properties. Under Wekerle Plusz, only individuals aged 18 to 45 can participate.

The 3 percent interest rate applies only to new constructions, while used properties carry a 5 percent rate. Additionally, neither the buyer nor their spouse can own more than 50 percent of another property to qualify. The program sets strict price caps, such as a 100 million forint limit for apartments and 150 million forint for family houses, with a maximum price of 1.5 million forint per square meter.

Analysis from Ingatlan.com shows that only 16 percent of new apartments in Budapest fall within these price limits. In contrast, 77 percent of the supply in county-level cities and 83 percent in villages meet the criteria. Because 79 percent of new properties in the Budapest agglomeration fit these limits, experts believe the program will make the suburbs more attractive to potential buyers. While the program may encourage suburban expansion, it also faces challenges regarding infrastructure and environmental impact.

Experts note that rapid suburbanization can increase vehicle traffic and air pollution, and some surrounding municipalities have already faced water consumption limits. Despite the shift in focus, the overall construction of new apartments in Hungary rose by 31 percent in the first nine months of 2026 compared to the previous year. In Budapest, nearly 4,000 new apartments were built, a 59 percent increase over the previous year.