Lots of foreigners buy property in Hungary: these are the most popular places

The Hungarian Central Bank’s recent data reveals a sustained high in foreign property purchases, with nearly 8,000 transactions in 2022 and over 3,200 in the first half of 2023. The allure of Hungary is particularly strong in the five downtown districts of Pest, boasting a foreign property ownership rate surpassing 20%, while in the West and South Transdanubia, it holds steady at a respectable 10%. The big spenders on Hungary’s property scene in 2022 were the Vietnamese, Chinese, and Russians, splashing out between HUF 60-70 million (EUR 157,000 – 183,000).

Foreigner are charmed by Hungary’s property market

According to bank360.hu, the rate of foreign property buyers significantly grew in Hungary in the last 18 months. In Q2 2023, 6% of real estate sales, a total of 1,800 transactions, involved international buyers. That rate was even higher in Q3 and Q4 2022: 6.6% and 6.5% respectively.

In 2022, Hungary witnessed a surge in foreign interest, exceeding pre-COVID peaks (7,300 in 2018; 4.5%). Nearly 8,000 foreign nationals bought property in Hungary. The weak forint was a major player in this trend, with foreigners spending an average of HUF 43.3 million (EUR 113,000) to secure their own piece of Hungarian real estate. This is a significant jump from the average of HUF 25.2 million in 2018, MNB reported.

While 2023 brought a dip in overall property transactions due to economic uncertainties, skyrocketing inflation and interest rates, foreign buyers bucked the trend, claiming a larger share. Between January and September of this year, there were 89.3 thousand transactions, which is a 28% decrease on an annual basis.

The most popular places among foreign buyers

The downtown districts of Budapest, especially the 5-9th districts, saw a notable increase, with foreigners comprising 8.7% of buyers, which marks a significant rise from last year’s 7.8%. The same trend persists in Somogy County, where the reason for the growing interest is Lake Balaton. Furthermore, Germans, Austrians and Dutch nationals like to invest even in West and South Transdanubian counties where property is cheap.

Most property buyers are Germans. Their number grew by 69% compared to 2022. Every second property buyers in Somogy and Zala counties were German nationals last year. Vietnamese, Chinese and Russians spend the most on an apartment: HUF 60-70 million, EUR 157,000 – 183,000. Interestingly, the French also paid good money for property. Their average was HUF 51 million (EUR 133 thousand).

Slovakia stands in second place. The majority of the Slovaks coming to Hungary are above 65 years old. In Dunakiliti, Abaújvár, Gönc and Hidasnémeti, small Hungarian villages near the border, the majority of the real estate purchases involved Slovakian nationals. Of course, they might of Hungarians origin who spent their active years in Slovakia.

24% of the Germans were pensioners, while only 3% of the Chinese buyers were above the retirement age. It concludes that West and Central Europeans come to Hungary to retire, while East Asians arrive as employees or business owners. The most sought-after towns outside Budapest were Rajka, Battonya, Győr, Mosonmagyaróvár (in proximity to the border) and Hévíz (close to Lake Balaton).

Read also:

• Contradictory numbers: What’s happening with property prices in Hungary? – Read more HERE
• Unstoppable decline in housing construction in Hungary – check out the details in THIS article