Budapest – growing number of foreigners in the real estate market

Even though – at a national level – the proportion of foreign real estate buyers is very low, only 2%, a different situation can be experienced in the Hungarian capital. In case of Budapest, especially in the inner districts, 3 out of 10 purchasers are foreigners; which phenomenon has a significant impact on prices – reported by növekedes.hu.

According to the news portal, it would be an exaggeration to say that the Hungarian capital is conquered by Chinese or Russian home buyers; however, it can be confirmed that their significance is continuously growing – based on the data of the Hungarian Central Statistical Office (KSH) from 2018.

As 24.hu reports –

Accordingly, in the downtown districts of Budapest, the proportion of foreign customers reaches 26%; while considering the whole capital, 12% of property purchases are realised by foreigners. 

The highest demand is experienced in the 5^th, 6^th and 7^th districts; however, in case of Chinese customers the vicinity of the Hungarian “Chinatown” is also popular in the 8^th district.  

It has been also added that despite several market closures in the region, 8^th district still enjoys high popularity among Chinese, Vietnamese, Russian, Ukrainian and Turkish traders; just like around Kőbánya Bazaar in the 10^th district which is mostly preferred by Chinese purchasers. 

Upper-class traders and the Chinese elite mainly target Buda Hills region, along with Zugló, Angyalföld and the prestigious city centre – 91% of Chinese purchases are realised in the capital.

It must also be mentioned that certain data might be deficient as companies purchase several properties; however, statistics do not analyse the nationality of the business owners.

According to Csaba Laczi – Region Manager of OTP Ingatlanpont –

In addition to Chinese property buyers, the number of Vietnamese purchasers is also significant – “nearly 95% of properties bought by Vietnamese customers are also located in Budapest; however, they are mainly interested in the 11^th district.”

Source: novekedes.hu; 24.hu