Foreign property buyers reshape Hungary’s real estate landscape
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Hungary is experiencing a significant increase in foreign property purchases, particularly from non-EU buyers, which is affecting its housing market, especially in Budapest and certain counties. This trend has sparked discussions about potential measures to address the situation.
Current trends in foreign property purchases
In 2023, Hungary saw a notable rise in property acquisition requests from non-EU buyers: 2,981 applications were submitted, marking an 18% increase from 2022. This number represents a 10% increase compared to 2021 and a 36% rise from 2020. Chinese buyers led with 647 applications, typically seeking higher-priced properties in Budapest, G7 reports.
The distribution of these purchases is not uniform across the country: Budapest’s inner districts (V., VI., VII., VIII., IX.) saw 17% of purchases by foreign buyers. Overall, foreign buyers accounted for over 6% of purchases in the Hungarian capital. As for counties, Somogy and Zala experienced 14% of purchases by foreign buyers, while the national average stands at around 5%.
Impact on specific areas
Chinese buyers show a preference for certain Budapest districts: 13% of their purchases were in District XIII, while 11% were in District X. Russian buyers, the second largest group, favoured District VI, which saw 17% of their purchases, and District VII, with 9% of their purchases. Ukrainians constituted the third largest group of non-EEA property buyers.