Cheap real estate: Romanians move to Hungary, own half the houses in this town

In 2023, more than 300 houses were sold to Romanians in towns on the eastern border. Some work in Romania and live in Hungary, while others have moved to the country permanently. Hungarian towns on the border may see more and more Romanians arriving every year, as both the price of real estate and utilities are cheaper here than in their own country.

Világgazdaság spotted a video on a Facebook page titled “Timisoara, the European Capital of Culture”, in which a Romanian man claims to be driving in a small Hungarian town “where half the houses have been bought by Romanians.” The most liked comment under the video is from another Romanian and reads:

“I live in Battonya and am very happy. Utilities are cheaper than in Arad, it is clean and quiet here, the locals are nice people.”

Other commenters share the sentiment, with one person writing:

“This is exactly what the people from Nagyvárad do, too, half an hour from the Hungarian border. They are very satisfied, impeccable cleanliness, cultured village of Ártánd, Biharkeresztes…”

Real estate prices in Hungary vary

As we reported earlier, Hungary is one of the least desirable countries for real estate buyers in Europe due to steeply rising prices on the market. Indeed, in 2023, there was a 27% drop in the volume of real estate investment transactions compared to the previous year.

However, it seems that Romanians in particular are quite fond of Hungary, with many choosing to relocate to the other side of the border. Világgazdaság highlights the findings of the Romanian Digi24, which describes how interest in Hungarian real estate first peaked in 2007 after Romania joined the European Union. As prices remained relatively low in the area, business remained steady. In 2007, average house prices in local Hungarian towns were around EUR 2,500. Today, there are properties selling for EUR 10,000, but Világgazdaság quotes a real estate agent who just last year sold a 4,000-square-meter plot with a 100-square-meter, 3-bedroom property for the price of only EUR 5,000.

Border regions are appealing to Romanians

Located just a few kilometres away from the border, therefore very easily reached on the highway, the low prices and the good condition of the properties in these areas are appealing to Romanians looking to buy new homes. The pandemic played a crucial role in the housing market as well: many could work from home, which made moving across the border much easier. Another important factor is the price of utilities in Hungary, which might be as low as half of that in Romania.

Census data from 2022 shows that Hungary has a Romanian population of around 36,000 people, with most of them living close to the Romanian border, especially in Gyula and Battonya. In many cases, these communities have their own Romanian-language kindergartens and schools, as well as local Minority Self-Governments.

See our other reports on the real estate market in Hungary:

• New survey: Hungary is among the least desirable countries for homebuyers – HERE
• Positive changes at Lake Balaton: Far more holiday homes for sale than in 2023 – HERE

Source: Pénzcentrum