Foreign buyers reappeared in the Hungarian real estate market

As the forint continued to plummet, foreign buyers started to reappear in the Hungarian real estate market in the first half of 2022, writes 24.hu. The extent of foreigners’ presence in the market has not been this prominent since 2019, prior to the outbreak of the pandemic, points out the analysis of the Hungarian National Bank.

The most sought-after regions

In the last couple of months, a slight shift can be seen in the Hungarian real estate market due to the increasing presence of foreign buyers. Although properties in the countryside also became more sought-after in general, most purchases are concentrated in the Trans-Danubia region. Foreign involvement in the region has reached nearly 15 percent. However, some foreigners, for instance, Israeli and Chinese buyers, focus merely on the capital city. In addition, a distinction can easily be drawn between the districts of Budapest. The analysis of the Hungarian National Bank pointed out that certain parts of the city appeared to be more popular than others. The Buda Mountain region, including districts I, II, and III, is one of the more popular neighbourhoods. In spite of that, the investors’ main attention was mainly concentrated on “the heart of the city”, especially on districts V, VI, VII, VIII, and IX. Regarding the previously mentioned districts, this year a 15,2 percent uprise can be observed in the Hungarian real estate market, but the figures still fall behind the 2019 rates (16,30 percent). Dávid Valkó, senior analyst at OTP highlighted the importance of high-value properties in the above-mentioned regions. However, he also added that managing Airbnbs has been extremely challenging due to Covid-19. In addition, Valkó explained that the main reason behind the increasing number of foreign investments was the weakening forint.

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Hungarian real estate market trends

The 2021 analysis of KSH also demonstrated a significant change in market trends due to the pandemic: the presence of German, Dutch, and Slovakian buyers rose, while a considerable drop was seen in the case of Israeli, Chinese, and Vietnamese investors who used to make up a fair share of foreign buyers. “Most properties in 2021 would be purchased by German, Slovakian and Romanian buyers.” It is also worth noting that investors from these countries have different goals and aims. Typically, Germans seek to find a place for their retirement years, while Slovakians and Romanians look for real estate near the borders. Valkó stated that the Hungarian real estate business would remain attractive for foreigners unless some major improvement occurs in the Hungarian currency’s exchange rate. He concluded his analysis by saying that foreign buyers and investors did not have to fear increasing prices anytime soon nor do they have to worry about housing support since it would be covered by the government next year.

Read also: These are the losers of the real estate market turnaround in Hungary

Author: Marcell Puskás

Source: 24.hu