Record number of foreign buyers in the Hungarian real estate market
While the real estate market in Hungary has seen a decline, an increasing number of foreigners are making investments in the country. The influx of foreign homebuyers has even surpassed pre-COVID-19 levels, setting a new record. Here’s a look at what nationalities are buying property and for how mu
New record
Mfor.hu recently reported a surge in foreign homebuyers in Hungary. Data from ingatlan.com and the Hungarian Central Statistical Office reveals that the number of foreign buyers now exceeds the levels seen before the COVID-19 pandemic, setting a new record. László Balogh, Chief Business Expert at ingatlan.com, noted:
Foreign homebuyers have bucked the trend. Last year, 138,000 homes changed hands, marking a 14 percent decrease from the previous year. At the same time, foreigners bought 8,000 homes, up almost 10 percent from the pre-pandemic peak in 2018 and a 38 percent year-on-year increase. We must add that in 2021, activity from abroad was subdued due to the pandemic.
The expert also highlighted that the forint has weakened against the euro, as we have reported HERE. Therefore, foreigners can purchase homes in Hungary at more affordable prices, attracting many who view these properties as attractive investment opportunities. Furthermore, there’s a growing interest among foreigners in finding a home for settling down in the country for a few years at least.
Where do foreign buyers come from?
According to Portfolio, over 2,000 foreign buyers hold German citizenship. This shows a growth of 70% compared to the year 2021. The data indicates that Germans tend to favour homes near Lake Balaton, as well as in Zala and Somogy counties. Over 1,000 Slovakians have also invested in Hungarian properties, primarily pensioners aged over 65, who tend to purchase homes close to the northern border of Hungary, near Slovakia. Romanians and individuals from the UK are also among the top foreign buyers in Hungary. Chinese buyers have acquired more than 800 homes, typically opting for apartments in the capital.
Who bought the most expensive homes?
It may not come as a surprise that the most expensive properties are predominantly acquired by Asians and Russians, a trend that has remained consistent over the past few years. Vietnamese buyers, on average, have spent more than HUF 70 million (EUR 183,000) on a home. Chinese buyers follow closely, with an average of HUF 63 million (EUR 164,734), while Russians come in third place with an average of HUF 60 million (EUR 156,890). In contrast, individuals from the Netherlands and Romania tend to spend the least on Hungarian homes, which might be attributed to their preference for properties outside Budapest. Generally, real estate prices are notably lower in the countryside. For further insights into the property market in Hungary, you may be interested in exploring the current trends in property prices in Hungary.