Garages might really be the best investment possibilities in Hungary?

Maintaining a garage is cheap, and based on the location, it can even be rented out. In the European Union, Hungary had the lowest number of cars per 1,000 people in 2019. However, between 2015 and 2019, the number of registered cars grew by 19 per cent, writes privatbankar.hu.

Parking is very difficult in agglomerated areas, for example in Budapest. This is why buying a parking space can be useful both to use it and to rent out the parking space. Demands for garages and parking slots will only increase in the future, making it an easy-to-maintain and affordable investment.

Hungary has the third-highest real estate prices in the EU

The price of garages is increasing.

In the past, the price was between 2.5 and 4 million forints (€ 7-11,000), which now can be as high as 4.5–6 million (€ 13-17,000). In Budapest, some garages can cost up to 7–12 million (€ 20-34,000),

while the same type of garages in rural areas cost 3–6 million. In rural areas, garages are the most expensive in Debrecen, Székesfehérvár, and Veszprém.

When buying a garage, there are some aspects and regulations to keep in mind. First and foremost, value-added tax has to be paid, which is 27 per cent. If someone wants to buy a newly built garage, the buyer should know that these cannot be bought separately from an apartment or house, so their only chance is to buy it from the owner, if possible.

Unique rise in real estate investment volume in Hungary!

Buying garages was a great investment even in 2019. According to many experts, the future belongs to electromobility, so in terms of resale or rentability of the parking space,

it is important whether the parking space has a source of power to recharge electric vehicles, writes 24.hu. The extra power consumption has to be paid for by the owner or, in some cases, the tenant.

The parking machine also has to be taken into consideration. Car owners have to make sure that their vehicles can fit into the parking machine. Another aspect to think of is the parameters of the parking slot and the size of the car. In recent years, cars became larger, and owners have to make sure they can comfortably park their car in the parking slot.

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Source: privatbankar.hu, 24.hu