Real Estate in Hungary 2021. Which Properties to Buy

The Heavy Blow to the Tourist Apartments

Hungary has been one of the leaders in price increases in Europe since 2015. Among the main reasons were rather modest initial prices by the standards of Eastern Europe, high tourist potential (especially of Budapest and the lakes) and the measures of state aid. However, even before the coronavirus crisis - from the end of 2019 - the dynamics began to slow down. The market of Budapest has suffered the most. No, the prices have not fallen, but the growth is not what it used to be. The main reason is the decrease in demand, which accelerated in the beginning of the pandemic: apartments in the capital have lost their investment attractiveness in a wink without numerous tourists.

Ilona Chik, Manager, Perfect Invest Hungary:
“Apartments in the historic center of Budapest, within the ring way, were in great demand. They were regarded as interesting investments for foreigners and the Hungarians themselves. The property owners made publications on different platforms for short-term rentals and rented them out to tourists. It was possible to get the rental yields of about 10-12% per annum. For foreigners who used the services of management companies, the profit was about 8% per annum. In addition, when buying up to three apartments, it was possible to pay the tax on your rental income at a reduced rate. The Hungarians actively used this option. The prices were pushed up by this situation. Now the tourists have disappeared with the beginning of the pandemic. Only long-term rentals make sense now and they bring a maximum of 5% per year. The prices and the demand have decreased because of this situation.”

The prices for apartments and houses in the country increased by 3.2% during the period from the first to the third quarter of 2020 on a year-to-year basis. Not too shabby, but for comparison: in 2019 the prices rose by 17%. However, these data are due to a sharp reduction in the number of transactions during the lockdown. At the same time, the number of rental apartments increased by 20% in the summer 2020 and the rates in Budapest fell by 25%.

The Number of Real Estate Transactions Has Begun to Increase

However, since the end of 2020, the real estate sector has begun to revive. The number of sales rose first, followed by the prices. Already in March 2021, the number of transactions across the country became a record in ten years. The volume of current operations in the real estate sector is approaching €900 million, which allows expecting positive results in the second quarter.

Construction in Hungary is also expected to grow: according to analysts of Takarekbank, after last year's decline by 9.1%, the volume of new projects may grow by 13% in 2021, and by 8.2% in 2022.

The main reason for the activity was the desire of the buyers to catch up after all the covid restrictions. New measures by the government to support the families, as well as the decrease of mortgage interest rates, also played an important role.

The generally stable state of economy has also facilitated the recovery of the real estate market. The unemployment rate has barely risen in Hungary. In addition, today Hungarians, just like other Europeans, regard investments in real estate as a way to protect their savings from inflation, which has begun to rise in the country shortly before the pandemic.

The Government Support

In order to help the economy hit by the consequences of the pandemic, local authorities have developed a set of measures to support the real estate and construction sectors. Hungarian media call this project "the most ambitious in the history of the market."

The main point: from January 1, 2021 the VAT for new buildings has been reduced from 27 to 5%. In addition, those who buy housing under the CSOK Housing Subsidy Scheme are exempt from all purchase related duties.

The program of subsidies for repairs for households with children was also launched from the new year 2021. Such households are eligible for compensations of half of the costs and may be provided with preferential loans for these purposes. All this should stimulate the demand for real estate - however, mainly domestic. And what about the demand from overseas?

Foreign Investors Have Reduced Their Activity

In the first quarter of 2021, the total volume of investments in the Hungarian real estate sector has reached €179 million, which is 27% more than during the same period in 2020, but mainly Hungarian investors have closed most of the deals.

Buyers from all over the world were active in Hungary before the global crisis – the French, the Spanish, the Italians, the British, Russian people and the Chinese. Today only foreigners who reside in the country permanently purchase real estate in Hungary for personal use or lease. Private foreign investors disappeared with the beginning of the pandemic. The main reasons were the closure of the borders and freezing of the tourist flow.

However, the situation may change from the middle of this year, especially since Hungary is among the world leaders in terms of vaccination.

The Priorities of Property Buyers in Budapest Have Changed

Housing prices in Budapest have been growing at double-digit rates for several years, but such dynamics is in the past. According to analysts, the cost of housing has decreased by 5% in the center of the capital during the four months of 2021, while in the housing prices on the outskirts of the city have increased by 5-6%.

According to experts, a sharp rise in prices is still possible after the opening of the borders, so the current moment is probably optimal for an investment purchase. Nevertheless, a fundamentally different situation has already developed on the market, as the preferences of the buyers have changed.

Ilona Chik, Manager, Perfect Invest Hungary:
“Now the market has stagnated in the center of Budapest and the prices are still. Everyone is waiting for the opening of the borders and hoping that everything will return to the parameters of 2019. At the same time, the demand for housing in green areas of Budapest and for private houses has grown significantly. People are tired of being locked up in high-rise buildings, so they move into houses with three to six apartments with a garden, parking and other amenities.”

Hype at Balaton

After months of lockdowns around the world, people have started to look for more spacious housing outside the cities. And many Hungarians have rushed to the famous Lake Balaton. As a result, 2020 has become a record for real estate around the "Hungarian Sea".

The demand for housing around Lake Balaton was always high, but the outbreak of the pandemic has caused a real boom. There are more buyers than objects for sale, which means that a seller's market has formed. Interest for more expensive estates has grown: people have been searching for better quality houses for their own use and for investment purposes.

As a rule, in January the real estate market in Lake Balaton freezes. Houses and apartments are put up for sale only from March. But by the beginning of this spring there was nothing to advertise: almost everything was sold out during the winter. In addition, this year may also become a record one if there is at least some real estate left for sale.
Such high demand has a flipside as well: prices rise too quickly. According to experts, due to the consequences of the pandemic, local real estate has already risen in price by about 20-25%, and some places around Lake Balaton are almost equal in price to the most prestigious districts of Budapest.

Balaton is not the only winner. There are many thermal health-resorts in Hungary, and the real estate buyers were drawn there too. Interest in such cities as Sárvár and Bukfurdo has grown.

Remote Real Estate Sales are Developing

Remote transactions have intensified in Hungary after the outbreak of the pandemic as elsewhere in the world, including the transactions with foreigners. By the way, the Hungarian procedure has its own characteristics.

As Ilona Chik has explained, foreign buyers may sign a power of attorney without a visit to the consulate - during a video call with a lawyer, via Skype. The client sends the signed power of attorney to the lawyer via DHL, and the lawyer will be able to sign the purchase and sale agreement on its basis.

In addition, although real estate prices in Hungary are calculated in the national currency - forints, a foreigner can pay in euros or dollars from a bank account in his own country. The foreigner should transfer the amount according to the exchange rate on the day of the transaction to the client’s deposit account of the law office. This service is provided mainly by large agencies. Prior to that, in the same way, he transfers the sum of the purchase guarantee - 1% of the amount.

Residential property for sale in Hungary:

943 000 €

Flat in Budapest, Hungary

163 sq.m 3 2 1

Elite housing of the 21st century. Modern construction technologies and design equipment. Marina Part, which is familiar to many and has become a symbol of the 13th district, is the brainchild of one of the largest developers in Hungary. The continuation of the highly successful new building on the picturesque bank of the Danube was the...

WESTINVEST

301 800 €

Flat in Budapest, Hungary

56 sq.m 2 1 1

In the 13th district of Budapest, on the southern shore of the Foka Bay on the Danube, a few minutes' walk from the Dagai thermal bath, near the Arpad Bridge, the introductory part of the M3 motorway, next to the popular Marina-part business class complex, apartments from the developer are offered for sale in an exclusive complex. The location...

WESTINVEST

495 000 €

Flat in Budapest, Hungary

120 sq.m 4 3 2

In the center of Budapest (5th district), in an elegant classic house, on the bolshoy Boulevard ring, a newly renovated 3-bedroom apartment is for sale. Nearby: Satire Theater, WestendCity shopping center, 56\ minutes walk to Parliament, Antique Street, Margit Island, metro blue line station at the Western Railway station, tram stops 4-6, bus...

WESTINVEST

532 000 €

Flat in Budapest, Hungary

127 sq.m 4 3

Luxury apartments of new construction are for sale, in the heart of Budapest, next to St. Stephen's Basilica.The apartments were built through the reconstruction of the upper floor + the superstructure of an additional 2 floors in an elegant classic residential building. The apartments have a permit for operation.The area is lively and full of...

WESTINVEST

1 500 000 €

Villa in Budapest, Hungary

530 sq.m 6 5

In the popular part of the 22nd district of Budapest, called in Rozhavel, an elegant villa is for sale, located on a beautiful plot of 3300 m2. Proximity to nature, a well-kept garden hidden from prying eyes, with beautiful ornamental plants, an indoor swimming pool, a cozy wine bar, a gazebo provide a sense of comfort. Three-storey building...

WESTINVEST

2 600 000 €

Villa in Budapest, Hungary

430 sq.m 6 5 4

A newly built villa is for sale in the elite green 12th district of Budapest. In the 12th district of Budapest, in a picturesque environment, next to a protected area, a luxury villa from a developer is for sale. Luxury and elegance in a picturesque green area, modern, energy-saving technology, harmony is present in everything.Living area 430...

WESTINVEST

2 400 000 €

Villa in Budapest, Hungary

385 sq.m 6 5 4

Luxury and elegance in a picturesque green area, modern technology, harmony is present in everything In the 12th district of Budapest, in a picturesque environment, next to a protected area, a luxury villa is for sale.Living area 385 m2Rooms 65 bedroomsBathrooms 4Plot: 1500 m2Garage for 2 carsParking on the plot for 3 carsYear of construction...

WESTINVEST

480 000 €

Flat in Budapest, Hungary

74 sq.m 3 1 2

In the 5th district of Budapest, in the historical center on Falk Miksha Street, a stone's throw from the Hungarian Parliament, in an imposing house of ancient construction, an apartment is offered for sale after major repairs.Area: 74 sq.m.Number of rooms: 3Entrance hall, kitchen + living room with dining area, bedroom with private bathroom and...

WESTINVEST

2 100 000 €

Villa in Budapest, Hungary

740 sq.m 6 5 3

A panoramic villa with a swimming pool is for sale in the prestigious 12th district of Budapest. And the sought-after family villa with panoramic views was built on a quiet southern slope of the mountain, away from the noise of the city. The living room and the pool have access to the garden, the building is surrounded by a large terrace. Due to...

WESTINVEST

2 400 000 €

Villa in Budapest, Hungary

980 sq.m 12 8

In the most popular, central part of the 2nd district, on the Hill of Roses, a villa with a super panorama of the Danube is for sale.The villa for two owners is distinguished by a restrained elegant style, built by a famous Hungarian architect on a large cozy, beautiful, well-groomed plot.In the ornamental garden with evergreens, an automatic...

WESTINVEST

850 000 €

Apartment in Budapest, Hungary

113 sq.m 3 2 2

Online Viewing Remote Transaction

5th district, near the Parliament and the Danube embankment (2 minutes walk), in a beautiful renovated house, and the internal renovation has just been done, apartment on the 4th floor of 113 m2 with a balcony of 3 m2. The windows offer a panoramic view of the Danube. The apartment is designed using high quality materials and is fully furnished...

Perfect Invest Hungary Ltd.

1 100 000 €

Apartment in Budapest, Hungary

141 sq.m 3 2 2

Residence Online Viewing Remote Transaction

This rare to-the-market, large two-bedroom (all ensuites) apartment boasts a perfect location in the city centre and has a generous-sized balcony surrounding the apartment. It is located between Szabadság tér and Kossuth Lajos tér, offering excellent transport links around Budapest. The 141 m² spacious apartment is set...

Perfect Invest Hungary Ltd.

660 000 €

Flat in Budapest, Hungary

106 sq.m 4 3 2

In the 2nd district of Budapest, on the 3rd floor of a modern 5-apartment building with an elevator, built in 2023 on a large plot (1600 m2), an elite apartment is for sale. High-quality materials, economical maintenance, lots of built-in wardrobes, underfloor heating in bathrooms, heating and cooling built into ceilings. Spacious living room...

WESTINVEST

245 000 €

Apartment in Budapest, Hungary

46 sq.m 2 1 1

Online Viewing Remote Transaction

13th district, Marinaparte on the banks of the Danube, apartment on the 2nd floor 46 m2, open kitchen with living room, bedroom and balcony 10 m2, separate bathroom. The apartment is furnished and equipped. Upgraded house with a beautiful courtyard and 24-hour reception. The Danube embankment is a 2-minute walk away. Nearby there is a metro...

Perfect Invest Hungary Ltd.

244 900 €

Flat in Budapest, Hungary

78 sq.m 3 2 1

A newly built two-bedroom apartment from the developer is for sale. In one of the most dynamically developing parts of Budapest's 8th district, a few minutes' walk from the popular Korvin Alley, a newly built one-bedroom apartment from Hungary's largest developer is for sale. The newly built house uses modern renewable energy technology, with a...

WESTINVEST

395 000 €

House in Hungary

290 sq.m 6

BEAUTIFUL MOUNTAIN VILLA FOR SALE ON 5 LEVELS IN THE PILLIS HILLS NEAR BUDAPEST A beautiful villa is for sale near Budapest in the Pillis Mountains, in the small village of Csobánka. Location / infrastructure: 2014 Csobánka, first mentioned in 1177, is located in the Pest district, Szentendre district, and is only about 20 kilometers from...

Immotrading GmbH

55 000 €

House in Hungary

48 sq.m 2

A quietly located and completely renovated small bungalow on a plot of 1,181 m² is for sale in 4097 Tiszagyulaháza near the Tisza. General information This affordable property was converted into a small bungalow with mixed masonry during the renovations of this property, which was originally built from adobe bricks, using first-class materials...

Immotrading GmbH

4 450 000 €

Villa in Budapest, Hungary

1124 sq.m 12

A plot of approx. 2,874 m2 with 2 villas in the 12th district of Budapest is for sale. More detailed information It is an elite residential complex in Budapest, in the most prestigious district of the city - 12th district, with a completely private atmosphere. It takes about 12-15 minutes by car to get to the city center. The entire property...

Immotrading GmbH

213 000 €

Flat in Budapest, Hungary

49 sq.m 2

We are particularly pleased to be able to offer you a compact 2-room apartment for sale in a central location in the popular 8th district of Budapest. Location/Traffic/Infrastructure: Newly built in 2010, the residential complex is located on Nagytemplom street, a popular street in Corvin district, only about 2 minutes from Corvin Plaza and...

Immotrading GmbH

440 000 €

Flat in Budapest, Hungary

145 sq.m 4

We are particularly pleased to be able to offer you a classic 4-room condominium for sale in the popular 11th district of Budapest. The location is excellent - the Technical University, the Gellért Thermal Baths, the Gellért Hill with the oldest rock church in Hungary and the Danube are within walking distance. Bus and tram stops are also...

Immotrading GmbH

See more 219 similar properties

Quoting conditions of Prian.info materials