“The government has made its decision: as promised, from September 1, prescription medicines will be VAT-free,” the prime minister wrote.

Until now, prescription medicines in Hungary have been subject to the reduced 5% VAT rate, regardless of whether they are covered by public health insurance, compared with the country’s standard 27% VAT rate.

The government’s decision is expected to reduce household spending on medicines. Cutting the VAT on prescription drugs to zero is likely to provide the greatest relief for patients who take multiple medications on a long-term basis or rely on newer-generation, higher-priced prescription medicines.

Gábor Soóki-Tóth, head of analysis at Otthon Centrum, said rental prices in university cities—which are also major employment hubs—have been climbing steadily due to competition between students and workers for available apartments.

He expects rents in university cities to rise by a further 1–5% during the summer, before the market cools in October, when rents could decline by 2–4%.

In Budapest, monthly rents near university campuses currently range between HUF 205,000 and HUF 304,000. The cheapest area is District VII (HUF 205,000 per month), while District IX is the most expensive (HUF 304,000). Over the past five years, rental prices have increased by at least 50% across the capital, with some districts seeing rents double.

Outside Budapest, Debrecen stands out with an average monthly rent of around HUF 200,000, while average rents in Szeged and PĂ©cs are approximately HUF 150,000.

According to András Pásztor, head of Fundamenta Ingatlan, demand for rental properties typically jumps by around 30% immediately after university admission scores are announced.

Molnár added that average apartment prices per square metre in university cities have nearly doubled over the past five years.

According to the MBH Index, the sharpest property price increase over the past decade occurred in Magdolna Quarter in Budapest, where prices rose more than fivefold between 2015 and 2025. Among the city’s central neighbourhoods, Palota Quarter (+312%) and Outer ErzsĂ©betváros (+307%) recorded the strongest growth.

Property prices have also increased significantly in provincial university cities. Over the past year, prices rose by 28% in PĂ©cs, nearly 20% in Miskolc, and 19% in Debrecen.

Based on transaction data compiled by the MBH Index, Debrecen has become the most expensive regional university city, with an average price of HUF 946,000 per square metre. In the other major university cities, average prices remain below HUF 900,000 per square metre. Miskolc remains the most affordable, with an average price of HUF 474,000 per square metre.

Rental demand weakens, but apartment rents remain high in Debrecen

Within Budapest, property prices exceeded HUF 1 million per square metre in every district last year, Molnár noted.

FlĂłra Horti, senior sector analyst at the MBH Analysis Centre, said Hungarian house prices have continued to grow at one of the fastest rates in Europe. Since 2015, residential property prices have quadrupled, compared with an average increase of just 65% across the European Union.

She added that, after several years of rapid growth, the market is expected to moderate. Nationwide residential property prices are forecast to increase by 8–13% in 2026.

As the market gradually normalises, housing construction is also accelerating. The supply of newly built homes in Budapest reached a 10-year high in the first quarter of 2026. Analysts expect 15,000 new homes to be completed this year and 20,000 next year.

Banking experts also forecast HUF 1.8 trillion in new Otthon Start home loans, equivalent to around 50,000 new loan agreements, representing annual lending growth of 25–28% across the sector.

However, the number of property transactions is expected to remain below last year’s 136,000, with the bank projecting between 118,000 and 125,000 transactions in 2026.

While last year’s market was driven largely by investor demand and the Otthon Start programme, experts say the current environment is more balanced.

On the question of whether it is better to rent or buy, András Pásztor argued that purchasing a home is clearly the better financial choice for anyone planning to stay in the same place for more than five years, while renting remains the better option for shorter periods.

With standard market-rate mortgages, the break-even point in Budapest is more than 10 years, meaning homeownership becomes more cost-effective than renting only after that period. In Hungary’s larger provincial cities, the timeframe is also close to 10 years, with the exception of Miskolc, where buying becomes more economical after about five years.

Molnár added that subsidised financing and the possibility of renting out part of the property could shorten this payback period to three to five years.

(MTI)

The property portal said one of the main reasons behind the decline in rental demand is the Otthon Start (Home Start) programme, which has encouraged more first-time buyers to purchase homes instead of renting. Demand in May was 11% lower than a year earlier, while June saw a 5% decline.

LászlĂł Balogh, chief economist at ingatlan.com, noted that although the publication of university admission results usually triggers a surge in demand, this year’s peak rental season is beginning at a much more subdued level. In Budapest, weaker demand has already led to lower rents, while in several major university cities outside the capital, rental prices have continued to rise.

He added that demand had already started to weaken during last summer’s rental season following the announcement of the subsidised mortgage programme for first-time homebuyers, and its effects are still being felt. As a result, no major boom in rental demand is expected this summer.

In Budapest, the median monthly rent for a room remained unchanged at HUF 110,000, while apartments up to 40 square metres also maintained a median rent of HUF 200,000. The city’s overall median rent for apartments fell from HUF 270,000 to HUF 260,000 compared with July last year.

Across Hungary’s county seats, the median monthly rent for apartments up to 40 square metres increased from HUF 120,000 to HUF 130,000, while the overall median rent rose from HUF 170,000 to HUF 180,000.

Among the country’s largest university cities, Debrecen has the most expensive studio apartments, with a median monthly rent of HUF 170,000. Comparable apartments are offered for HUF 160,000 in Szeged and HUF 150,000 in both GyĹ‘r and SzĂ©kesfehĂ©rvár. More affordable university cities include PĂ©cs, where the median studio rent is HUF 140,000, and Miskolc, where it is HUF 110,000.

Source: MTI

Compared with the same month a year earlier, gross earnings increased by 8.7%, net earnings by 11.0%, and real wages by 9.0%.

According to KSH, the faster growth in net wages was partly due to the expansion of family tax allowances and additional tax benefits for mothers.

The median gross monthly wage stood at HUF 615,600, while the median net wage reached HUF 436,200, representing year-on-year increases of 9.5% and 11.5%, respectively.

Regular gross earnings—excluding bonuses, rewards, and one-off payments—averaged HUF 718,200, up 9.1% from a year earlier.

By sector, regular gross monthly earnings averaged:

• HUF 716,100 in the business sector,
• HUF 715,100 in the public sector,
• HUF 745,700 in the non-profit sector.

These represented annual increases of 9.2%, 8.9%, and 7.9%, respectively.

Real wages rose by 9.0%, while consumer prices increased by 1.8% compared with May 2025.

Among industries, the financial and insurance sector recorded an average gross monthly wage of HUF 1,305,882, while employees in accommodation and food services earned an average of HUF 490,259.

Average gross monthly earnings also reached HUF 895,638 in the mining sector, while the highest average wage was reported in the electricity, gas, steam supply and air conditioning sector, at HUF 1,505,741.

Average rents increased by 0.9% nationwide and 1.1% in Budapest compared with May. On an annual basis, rents were 5.2% higher across Hungary and 4.7% higher in the capital. Adjusted for inflation, real rents were up 3.4% nationwide and 2.9% in Budapest compared with a year earlier, while they were 17% higher than in 2021.

The analysis also found that the supply of rental properties declined between early June and early July. Nationwide, the number of rental listings fell by 2.6%, including a 3.4% decrease in Budapest. Supply also shrank in larger provincial cities by 0.9% and in smaller towns by 0.5%. This contrasts with previous years, when the number of rental listings typically began rising in May and peaked in August or September. Even so, tenants can still choose from more than 15,000 rental homes across the country.

In Budapest, the median monthly rent dropped from HUF 270,000 in July last year to HUF 260,000. The gap between the city’s most and least expensive districts has narrowed considerably. The highest median rent—HUF 350,000 per month—is found in Districts II and V, while no district has a median rent below HUF 200,000. The most affordable district is District XIX, with a median monthly rent of HUF 210,000, while Districts XV, XVIII and XX have median rents of HUF 220,000.

Among Hungary’s largest university cities, Debrecen has the highest median rent outside the capital at HUF 220,000 per month, making it the most expensive regional rental market. In Szeged, GyĹ‘r and VeszprĂ©m, the median monthly rent stands at HUF 200,000.

The most affordable county seat is Békéscsaba, where the median monthly rent is HUF 115,000, followed by Szekszárd at HUF 125,000. Among major university cities, Miskolc is one of the least expensive, with a median monthly rent of HUF 130,000.

(Source: MTI)

Lawmakers adopted the amendment to the Act on Price Setting and the Act on the Strategic Stockpiling of Imported Crude Oil and Petroleum Products, submitted by Minister for Economy and Energy István Kapitány, with 130 votes in favour, 36 against and five abstentions.

The government justified the abolition of regulated fuel prices by citing improvements in the international energy policy environment.

While ending the price cap, the legislation also allows the minister responsible for trade policy to reintroduce official prices for petrol and diesel through a decree if necessary in the future. Citing the volatility of the fuel market, the law provides for state intervention in cases where market conditions change disproportionately and require government action in order to protect consumers’ interests.

(MTI)

According to a post published on Kármán’s Facebook page, he and Prime Minister Péter Magyar will meet Pierrakakis on Friday. As finance minister, Kármán first held bilateral talks with the Eurogroup president at the ECOFIN meeting in Cyprus in May.

The minister also addressed the issue of the reference interest rate cap. He wrote that it remains “a perennial topic, despite the fact that we have repeatedly stated that with responsible economic policy and a predictable budget, the previous government would not have needed to introduce and maintain indefinitely such a market-distorting measure as the mortgage loan interest rate cap.”

In this regard, he said that the Tisza government will maintain the interest rate cap under unchanged conditions until early October, while allowing time for consultations. This will make it possible to phase out the measure in a way that ensures genuinely vulnerable borrowers receive real assistance.

(MTI)

According to the statement, Wizz Air is entering this summer season with 15 new routes, 19 new aircraft, and nearly three million available seats, representing approximately 30 percent growth compared to the same period last year.

An expanded summer action team will once again be established at the airline’s operations control centre to respond immediately to any disruptions. Specialists will remain in constant contact around the clock with staff at the operations centre, customer service, ground handling providers, and the communications department, enabling rapid responses when needed. Artificial intelligence will also support operations. In addition, as in the previous year, Wizz Air will cooperate with HungaroControl, Hungary’s air navigation service provider, to bring forward the departure times of the first flights of the day, making the overall daily schedule more predictable and stable. The airline has also adjusted flight scheduling to allow operational issues caused by delays to be resolved more efficiently.

Wizz Air is asking passengers to assist by arriving at the airport earlier than usual, at least two hours before their flight’s scheduled departure.

Passenger traffic at Budapest Airport increased by 7.1 percent in May

To address the challenges of the summer season, the airline has introduced a Delay Assistance service, which can be purchased during the booking process. On the day of travel, the system automatically checks the status of the passenger’s flight and provides advance notification if it is delayed by more than two hours or has been cancelled. It then offers an easy-to-use rebooking platform where affected passengers can book an alternative flight to their destination free of charge within a specified budget limit.

If the proposed rebooking options are not suitable, affected passengers can receive a full refund of their booking, including the airfare and additional services purchased for the journey, such as Wizz Priority and checked baggage. They may also continue to use the flight included in their original booking, the statement highlighted.

Another new feature is the Wizz Link service, which allows previously separate bookings to be combined. As a result, passengers travelling through multiple cities can now manage all their reservations in one place at the same time.

The airline recalled that in May this year, Wizz Air achieved a flight completion rate of 99.99 percent across its entire network, while 82.67 percent of its flights arrived within 15 minutes of their scheduled arrival time.

During the summer months, Wizz Air will operate 1,200 flights daily across its network, serving nearly 200 destinations on multiple continents with a fleet of 269 aircraft. More than 4,000 cabin crew members, along with thousands of engineers and operational staff, will contribute to the operation of these flights.

(MTI)

Compared with the same month a year earlier, gross average earnings increased by 9.0 percent, net average earnings by 11.2 percent, and real earnings by 8.9 percent.

KSH noted that the rise in net average earnings exceeded the growth in gross wages partly due to the expansion of family tax benefits and additional tax allowances available to mothers.

The median gross wage reached HUF 616,000, while the median net wage was HUF 436,400, representing increases of 9.1 percent and 11.1 percent, respectively, compared with April of last year.

(MTI)

The data, based on the eVisitor and eCrew systems as well as accommodation and nautical tourism records, show a 5% increase in visitor numbers and a 7% rise in overnight stays compared to the same period in 2025. Coastal destinations recorded 12.2 million overnight stays, up 8% year-on-year, while continental destinations saw a 3% increase.

Tourism and Sports Minister TonÄŤi Glavina said the growth reflects the success of government measures aimed at strengthening the pre- and post-season and promoting year-round tourism. He added that June figures so far also indicate positive trends.

At the same time, Glavina cautioned that the peak tourism months of July and August are still ahead. Based on current market research and developments in Croatia’s key source markets, demand appears slightly more restrained than in previous years. He stressed the importance of maintaining responsible and competitive pricing policies.

The minister also noted that Croatia has adjusted its tourism marketing campaigns in response to the crisis in the Middle East. The revised campaigns emphasize Croatia’s competitive advantages, including its proximity to major European markets, its safety, and its good value for money.

Istria recorded the highest number of overnight stays during the first five months of the year, with 4.1 million, followed by Split-Dalmatia County with 2.2 million and the Kvarner region with 2.1 million. The most popular destinations among visitors were Dubrovnik, Zagreb, Rovinj, Split, PoreÄŤ, and Zadar.

Among foreign visitors, Germans generated the highest number of overnight stays at 2.7 million. They were followed by domestic tourists with 2.5 million overnight stays, Slovenians with 1.3 million, Austrians with 1.1 million, Britons with more than 670,000, and Americans with over 540,000.

Hotels, which account for 15% of Croatia’s accommodation capacity, generated 43% of all overnight stays. Campsites, representing 20% of capacity, accounted for 16% of overnight stays, while private accommodation, which makes up 52% of capacity, generated 23%.

HTZ Director Kristjan Staničić said the positive results confirm Croatia’s strong position on the international tourism market. Despite challenges facing the global travel industry, interest in Croatia remains stable. Recent European studies also indicate continued strong demand for Mediterranean destinations, with safety, quality, and value for money remaining key factors for travelers.

(MTI)