Russians and Chinese treat Hungary’s property market as an investment platform
In the Hungarian property market, Chinese citizens and the Russians were the most active buyers in 2023. Following the residency bond programme introduced years ago, the Hungarian government is launching a new initiative aimed at citizens from non-EU and non-EEA countries. This programme grants a ten-year residence permit in exchange for real estate purchases or donations to trustee foundations.
Photo: depositphotos.com
According to Telex, the new Hungarian “guest investor” programme will come into effect on 1 July, following the local and European parliamentary elections. Using insights from analysts at Ingatlan.com and Duna House, the news portal examined the current state of property purchases by non-EU foreigners, particularly focusing on the trends among Chinese and Russian citizens, who are the predominant buyers.
Chinese and Russian citizens most active buyers
Every spring, the Prime Minister’s Office releases data on the number of non-EU foreigners who applied for permission to buy property in Hungary. According to these reports, the number of applications submitted by foreigners increased by 18% in 2023 compared to 2022.
Last year, 2981 non-EU citizens applied, marking the highest number since the coronavirus pandemic, although it remains below pre-pandemic levels (nearly 3300 in 2018 and over 3500 in 2019).
Regarding actual transactions, Chinese and Russian citizens were the most active buyers in 2023, with Chinese nationals purchasing 647 properties and Russians 223.
Decline in Russian buyers since 2022
Budapest, Hungary. Source: depositphotos.com
Recent data shows a narrowing gap between the two nationalities: Chinese buyers purchased 17% fewer properties in 2023 compared to 2022, while Russian purchases increased by 16%. For Russians, properties in the 6th district were most popular, whereas Chinese buyers favoured the 13th and 10th districts, with about a quarter of their purchases occurring there.
According to Károly Benedikt, PR and analysis director at Duna House, the strong interest from Russian buyers seen in the two to three years before the invasion of Ukraine has significantly decreased, now representing only about 10% of that previous interest. This decline is partly due to sanctions and restrictions on Russians: only those with Hungarian residency permits or those who purchase through companies can buy properties, and government approval is still required.
Financially, the process is also complicated. Many long-time Russian residents in Hungary had their bank accounts closed at the war’s onset. Selling existing properties is also difficult, and it is nearly impossible for individual Russians to acquire Hungarian real estate. Those who manage to buy properties and have sufficient capital typically invest in luxury properties, often as part of broader international investments.
Data from Duna House indicates that the proportion of Chinese buyers purchasing homes has also decreased, with most now buying for investment purposes. They tend to purchase properties with one or two bedrooms, typically valued around 80–100 million forints. Foreign buyers usually rely on intermediaries, with Duna House employing several Russian and Chinese-speaking experts, and essential documents available in Russian and Chinese, alongside English and German.
Thousands of Russians scoping the market
Statistics shared by Ingatlan.com support the notion that Russian buyers face significant challenges. The real estate agency reported that Russian interest in their listings has surged in comparison to Chinese interest over the past two years. In 2022, 504 Chinese and 2242 Russians inquired about properties, rising to 1342 Chinese and 3842 Russians in 2023. For January 2024, Russian inquiries (851) far outnumbered Chinese ones (66).
In 2022, after the Chinese and Russians, the most active buyers were Israelis (182) and Ukrainians (166), followed by British (132) and Turkish (75) nationals. In 2023, the Prime Minister’s Office included Vietnamese in the statistics, who previously were under the “other” category. Consequently, last year, 340 Vietnamese, 154 Ukrainians, 108 Israelis, and 108 Turkish citizens bought property in Hungary.
Read also:
- Housing market: Foreigners buy up the countryside, rents in Budapest cheapen
- Competitive: Number of Chinese-owned businesses in Hungary soaring
Featured image: depositphotos.com
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4 Comments
The Russians are buying in the 6th district which is where their embassy is. I would wonder how many have ties to the FSB and other Russian agencies. I went for a walk in the embassy district recently. The Russian embassy is the only one where there is absolutely nothing posted on the fence to tell you what is on the other side. No flag. You have to peer through the gates to see the plaques on either side of the main door to confirm who these people are. It’s very much like an organized crime clubhouse with high security and a ultra low profile. There is a memorial to Navalny on the opposite side of Andrassy ut.
It is called buying yourself and your family a Plan B … And the “background check” consist of a liquidity test. Our Politicians, all over!
Hungary has “authorized” this, over the course of the 14 years, they have SUPPORTED the Orban – Fidesz Government.
It WILL worsen.
“Favours in RETURN for FAVOURS undertaken by China & Russia, that have been accelerated quickened over time, as the Orban – Fidesz Government, through muchly there own “suicide ” or RECKLESS acts/undertakings, that have caused the “Fall out” – the collapsed membership position of Hungary as a Member Country of the European Union, that hinges on HIGH probability of us being EXPELLED, and the obvious change of Political Governance of Hungary, the DISTILLATION of Democracy, and the BASTARDIZATIONAL processes – Sell Off” of Hungary, to China & Russia, through the on-going COLLAPSE of the Hungarian economy.
The “Contra Deals” that have continue on between the Orban – Fidesz Government, that are, we Hungary offer or GIVE to China & Russia something that is HUNGARIAN – under title & ownership, and in return – China and Russia predominantly, by monetary exchange like Funding, to the Fidesz Government, endeavouring to keep them “in funds” or solvent, or by Investment and “other” – are HANDED out by SPECIAL arrangements, that could be termed as “under the table deals” – or CONTRA arrangements.
Orban – Fidesz Government have “sold us out”.
It continues, and will EXPAND in rapidness in the course of the next (9) nine months – or right through and on, from the outcome of the next General Elections in Hungary.
Hungary – we HAVE agreed – signed our FUTURE – the reversal of Governance of Hungary, back to prior that existed in Hungary 1988/89 – an era in our History, under a Communistic Government, as we factually where from 1945-1989 – that STILL is DEEP – in our DNA and COMFORTS us – Hungarians.
Hungarians continue on in there “ageing” millions that displays EXHIBITS that we CAN cope with COMMUNISM handle it, that DIFFERS from DEMOCRACY – in that we don’t understand and find it to complex for our intellectual capacity to LIVE and practice as our Political form of Governance.
Orban – his Fidesz led Government – what – after 14 years in POWER as a Government – look at what we have been DELIVERED in return.
Hungary, as the Rich get RICHER, and the poor in millions, in cities, towns, villages and hamlets, throughout Hungary, get POORER – sold out as a country by the AUTHORITY granted them by us – the citizens in our millions of “ageing” Hungarians – what a FUTURE we HAVE.
Hungary – it will be DEPRESSIVE – “starved” of freedom & liberty – of OPPORTUNITIES but it’s our DNA “comfort” zone that BELIEVES that Communistic Rule – outweighs our FUTURE – than being a DEMOCRACY.
Buying property in Hungary is a bit of nightmare. You have to ask for permission with specific property in mind. Pay a fee etc. Then you got to get a tax number. Then you have to register with the local municipality where you had to get the Major’s permission previously to buy the real estate etc, etc. Then you can start the tango with the utilities, insurance and such! I would not want to do it again! But in any event HIRE A LAWYER!