Hungary is the second best place in the world for first home buyers, according to research by Compare the Market. The research ranked 35 countries on 6 of the major considerations for first home buyers, including disposable income to cost-of-living ratio, average mortgage interest rate and government grants aimed at first home buyers.
Hungary came second on the index for a variety of reasons including a 181% increase in house prices from 2015 to 2021, a 4 out 5-star rating for long term investment, and a very comfortable disposable income to cost-of-living ratio of 10.4%, Compare the Market reported.
Coming second, Hungary is in the company of countries like Slovakia (1st), Lithuania (3rd) and Latvia (4th) while the bottom of the list is populated with countries like Mexico (35th), Iceland (34th) and Sweden (33rd).
The research writes about Hungary that its high increase in house prices indicates a rapidly growing housing market buoyed by favourable conditions, including:
- low mortgage interest rates
- higher wages
- high employment rates.
In other words, the housing market is supported by a healthy economy in which homebuyers are actively purchasing properties. The increase in demand has seen significantly affected purchase prices.
To date, there’s been an 181% increase since 2015.
- Read also: Property prices doubled in the past two years in most of the settlements around Lake Balaton
For the average Hungarian, 10.4% of their disposable income isn’t spent on cost-of-living expenses, meaning that the average Hungarian should be able to afford all necessities to live comfortably, and more. The high long-term investment rating coupled with the steep increase in house prices also indicates a great potential for the property’s value to continue increasing over time.
The Hungarian national and federal government offers subsidised interest on mortgages to families with children.
However, the market has been plunging over the last year because of the COVID-19 pandemic.
Here is the top 5 countries:
Best countries for first home buyers: the top 5 countries. Source: Press release.
Read alsoThese are the most expensive properties in Hungary – PHOTOS
Source: Press release/Compare the Market
5 Comments
There are 195 countries in the world. The survey compared 35 countries. Therefore the headline of this article is nonsense, Hungary is doubtless not the “second best place in the world for first home buyers”. That cannot be established without the survey looking at all 195 countries.
Dear Midas, you are right. We’ve amended the title.
Dear Eleonora, a quick A-Z of terms usually used: The title is the publication (DNH in this case). Each article has a headline. Within the article there may be sub headlines. What is sometimes referred to as text is in news articles is more correctly called the body copy. The headline/sub headline/body copy terminology its also used in published advertising (obviously adverts on websites are differently termed). But all the same, thank you for amending the headline.
Foreign Investment into the Hungarian Property Market – will continue to ESCULATE through the devaluation of the Forint against the Euro.
Property – across the broadsheet what comes under this word, through the catacylsmic pressures on the Forint, will “draw” on-going interest by Foreign Investors.
Pre February 2020 – the arrival of this Novel Virus – looking back over the decade to 2010 – the property markets – broadsheet – in Budapest , Hungary – predominantly DRIVEN to the DElUSORY pricing level – by Foreign Investors.
These Foreign Investors – in order – came from :
(1) – China.
(2) – Vietnam.
(3 – Germany.
The property market, in Budapest, Hungary – is under Massive Duress.
The strong undertone of the Real Estate Property Game – is that Carnage is occuring and will Esculate.
Ratio of Sellers to Buyers – of gigantic disproportion.
Budapest, Hungary – we continue to build – which in these times we live, and the PRESSURIZATION on all the componentry of the Hungarian Economy, that ALL are trending downward – INTERESTING.
History – never LIES and similarities in History to what is Factually happening in the Property/Real Estate markets – history tells us has ended in CHAOS.
Foreign Investment – growing Euros to spend through continual devaluation of the Forint – will not be SURPRISED, if greater numbers of property and land titles registered in Budapest,Hungary – have OWNERSHIP – place of Residency – outside the Lands of Hungary.
While I would love to live in Hungary and visit the beautiful country. The Hungarian government needs to make sure its cheap housing prices are for Hungarians only. If the Hungarian govenment doesn’t have a plan in place to prevent rich foreigners (doesn’t matter what their race is just they control lots of wealth) buying up restate then the country will turn out like Canada.