Hungarian real estates in demand among foreigners
Based on recent data from 2016, more than three thousand real estates were sold in Hungary to foreigners. The majority of the buyers are Chinese, Russian and Ukrainian citizens. Foreigners who would borrow also have several opportunities, what is more, in many cases they even receive some state aid, Turizmusonline.hu informs.
A total of 3,163 real estates – mainly houses and flats – were sold to foreigners in 2016. The top three foreign owners are the Chinese, the Russian and Ukrainian. Last year, Chinese bought 1.213, Russians bought 446 and Ukrainians bought 231 real estates. Some foreigners even took out a bank loan, although this opportunity is not so popular yet, Turizmusonline.hu states.
Foreigners may borrow from most financial institutions as locals do, but, of course, the procedure is not the same. It is also matters where they actually come from. Their nationality is not the same, either. When borrowing, nationality matters, but being either a resident or a non-resident client is also an extremely important aspect,
says Krisztián Vincze, manager of the Loans Service Centre of GDN Real Estate Network.
Resident clients have an identity document issued by the Hungarian authorities. They have more opportunities than non-resident clients, who do not have such documents. The origin of the client’s regular income also matters. If the client has any income from Hungary, a wider range of opportunities is available, similarly to clients of Hungarian nationality.
Of course, we have clients of foreign nationality, not living in Hungary and not working there, either; they just want to buy a real estate for investment. They also have opportunities, though, on a much narrower scale, Turizmusonline.hu notes.
Mr Vincze underlined that even receiving state aid is not impossible for foreigners. It is not exclusively the nationality that matters. The reason of the individual’s stay in Hungary and whether the client has tax-ID is also important. Basically, these foreigners may be entitled to the state aid if they meet a group of certain requirements.
Mr Vincze told Turizmusonline.hu that many foreigners believe that loads of administration processes are awaiting them that may slow down the procedure. However, today it is not the case. For example, the majority of the financial institutions do not require having a translation of the documents, and this might also reduce the amount of administration. Many of these institutions have highly qualified professionals who help foreign clients to find their way in the procedures.