Hungarian real estate: The ideal market to invest in

There are various reasons for the steep price hike in Hungarian real estate, like economic stability, increased wages, moderate interest rates, and low unemployment rates. But those are not the only factors; the government also offers programs to help people buying homes reports Property Forum. Furthermore, the prices of new units in 2018 went up with 18.4% while the prices on the second-hand market increased by 10.8%. At the same time, there was an increase of 4.7% in the number of sold properties on the second-hand market in 2018, which is the sixth year of growth in a row.

PROPERTY SUPPLY REMAINS STABLE

Despite the steady increase in demand, the supply for properties has mostly remained stable. The number of approved building permits increased by 0.9% in the first 6 months of 2019 (18.227 permits were approved). The number of completed projects was 6.472, a decrease of 0.7%.

OUTLOOK FOR THE HOUSING MARKET

In Q2 the Hungarian economy grew by 4.9% compared to the year before while a 4.4% expansion is expected for this year, making it the 7th year of uninterrupted economic growth. Unemployment decreased from 3.7% in 2018 to 3.4% in 2019. Expectations are that the Hungarian housing market remains its strong position as a result of steady economic growth.

LAWS AND REGULATIONS FOR FOREIGN BUYERS