Number of Russian buyers in the Hungarian real estate market increases

The presence of foreign nationals in the Hungarian real estate market increased in 2023, with further growth expected in 2024.

Compared to 2020, which was the weakest year for foreigners to acquire real estate in Hungary, the number of applications submitted in 2023 shows a 36% increase. While Chinese investors are still most likely to buy a property in the country, Russian property buyers have seen the largest increase, Portfolio reports.

Source: depositphotos.com

Non-EU citizens submitted 2,981 property purchase applications in last year’s real estate market, according to the Central Statistical Office (KSH) and Duna House data, which is an increase of 18% compared to 2022. Non-EU citizens were represented in 3% of Hungarian property sales, which is 2,981 cases, according to statistics published by the Prime Minister’s Office. The most active non-Hungarian purchasers were Chinese, with a total of 647 properties, the majority of which were located in Budapest with the XIII and X districts being the preferred areas.

The legislation requires a special government permit for foreigners to buy property in Hungary. However, it is possible for some without a permit from the relevant government office in the capital or county, but only citizens of the European Union, the European Economic Area and Switzerland can do so in Hungary this way. Of the nationalities within the EU, German, Dutch and Austrian citizens remain the most active in the domestic property market according to Duna House surveys, says Károly Benedikt, head of PR and analysis.

Russian house buyers increased last year in the real estate market

Photo: depositphotos.com

Among the nationalities affected by war, the activity of Russian buyers increased in 2023 compared to the previous year, while the acquisition of property by Ukrainian citizens decreased by 7% compared to 2022. Despite the decrease, while in 2022 the Ukrainians were the fourth most active group in Hungarian real estate, in 2023 they took the third place with a 5% presence. The majority of Ukrainians preferred the IX district of the capital, but Nyíregyháza was also popular among them.

Based on the number of applications submitted, Russian citizens were the second largest purchasers of real estate in the country as a whole, applying for permission to purchase real estate 16% more in 2023 compared to 2022.

The majority of Russian citizens buy luxury properties for investment purposes. As for Chinese buyers, the proportion of home buyers has also decreased, with more people buying investment properties with a living room plus one or two bedrooms.

“As for the capital, the downtown area of Pest is a popular location for foreign investors, with the 13th district leading the way in terms of new developments”, Benedikt added. Properties outside Budapest were also in demand, with Pest County being still popular in the real estate market, but Komárom-Esztergom County saw almost four times as many applications for permits from other countries last year than the year before.

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