Hungary’s premium real estate market drastically transforming

The Hungarian premium real estate market is changing: the rate of foreign investors in Budapest decreases, but they are still very active around Lake Balaton. Here is the analysis of the Duna House, a Hungarian real estate agency. They say that more and more English, Dutch and Belgian nationals would like to buy real estate in Hungary, which is a new trend.

Duna House told MTI, the Hungarian News Agency, that demand is growing for houses and apartments with the most modern technical solutions. Meanwhile, fewer people would like to buy real estate only in the premium category because of its size but needing urgent revamp. Their analysis says that owners of such apartments should consider renting out their apartments during the swiftly changing economic environment.

Károly Benedikt, the leading analyst and PR expert of the Duna House, said that the Hungarian luxury real estate market moves on a wide palette. There are modern, newly built apartments and modernized ones not older than five years, having solar panels, state-of-the-art technical solutions, and heat pumps. Furthermore, some homes are in the premium category because of their excellent location and size, but they have outdated technical equipment.

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Duna House reported a growing demand for premium apartments in Budapest, in the suburbs and around Lake Balaton. They expect an increase in supply in this sector. But selling non-modernized apartments will become harder, Duna House added.

Some real estate owners in that category decide to rent their apartments, which can generate an acceptable profit. For example, an apartment worth 250 million HUF can be rented for 1 million HUF/month.

During the pandemic, the number of potential foreign buyers decreased significantly in Budapest and the agglomeration’s premium real estate market. Currently, most Hungarians would like to buy apartments in that category. Meanwhile, Lake Balaton remained popular among German, Swiss and increasingly English, Belgian and Dutch buyers. Around Lake Balaton, demand for houses and apartments with 3-4 rooms is still high.

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Source: MTI