housing

Tourism industry raises concerns over proposed ban on short-stay accommodations in Hungary

The Hungarian Hotel and Restaurant Association has recommended drafting regulations on short-term accommodation based on international precedents and consultations with professional organisations.

In a statement sent to MTI, the association noted that homestays account for over half of the capital’s tourism accommodation capacity.

It recommended suspending the issue of short-term rental permits for a year, in 2025, during which time surveys could be conducted and studies made, with the involvement of professional organisations, allowing regulations to be drafted that could serve as a paradigm at the European level.

The association said regulation should focus on the inner districts of the capital, especially the area designated a World Heritage Site. Extending the rules nationwide would be unnecessary.

The association also proposed applying the same tax rules to commercial accommodations as to short-term rentals.

As we have already reported, in Budapest, the mayor of the 6th district, Tamás Soproni (Momentum Party), tried to get residents to vote for the ban. The turnout was very low, 20%, and the pro-banning campaign won by just a few percent (54-46%), but the mayor took the result as valid and credible. Related article: Airbnb issue in Hungary: with low turnout and almost identical turnout, the VI district orders a ban

The ruling party has found a good reason with this by no means representative vote to regulate “Airbnb apartments” across the country heavily, and already the minister in charge has indicated that a regulation is in the works.

It is essential to point out here that the wealthiest Hungarians with links to the ruling party own a large proportion of Hungarian hotels and expect some boom if they knock out the small landlords who currently account for more than half of Hungarian overnight stays.

Several tourism experts have already spoken out about the huge loss Hungarian tourism will suffer if the government bans short-term accommodation. Moreover, the problem of accommodation will not be solved because the statistics do not show that.

read also: Once-in-a-lifetime opportunity: Here’s how you can get free ownership of a Hungarian castle

September 23, 2024

Hungarian minister asked banks to keep home loan APRs under 5%

Spontaneous euroisation Budapest rent prices property market prices exceeded property in hungary renting in Hungary rental

National Economy Minister Márton Nagy asked for lenders’ cooperation in implementing the rollout of workers credit and keeping mortgage rates down at a meeting with representatives of the Hungarian Banking Association on Thursday, his ministry said in a statement.

Nagy asked lenders to make sufficient preparations for the workers credit that will be offered to blue collar workers between the ages of 17 and 22. He also asked banks to keep home loan APRs under 5pc.

To allow a government measure that would exempt tips from tax, he asked banks to make the necessary technical changes allowing customers to give tips separately when paying with POS terminals.

He asked banks to digitalise Hungarians’ SZEP voucher cards, allowing payments with mobile phones and making it easier to spend the close to HUF 100bn sitting on SZEP balances.

Nagy asked lenders to report back on how and when they would comply with the requests within two months.

The sides also discussed the state of the economy. Lenders said they wanted to contribute to putting the economy back on the growth track by boosting lending activity.

Nagy said Hungary’s GDP growth could reach 3-5pc in 2025, depending on the performance of the German economy. He added that the talks had been “constructive”.

Digital economy accounts for 18pc of Hungary GVA

The digital economy accounts for 18pc of Hungary’s gross value added (GVA), a study by Hungarian ICT association IVSZ and think tank Századvég commissioned by the National Economy Ministry shows. The research shows digital economy headcount stands at 935,000, including 253,000 people employed directly and 682,000 indirectly.

Richárd Szabados, the National Economy Ministry’s state secretary for SMEs, said the study showed a “dynamic” increase in employment in the sector which now accounted for close to one-fifth of all working Hungarians. He added that it also demonstrated there was “no alternative” to a close cooperation between the sector and the government, as every forint invested in the digital economy produced a multiple return.

The study projects the digital economy’s share of GVA could reach 21.8pc by 2030, solely on the basis of organic growth. If that growth is boosted by technology-driven development, the share could reach 23.3pc.

Read also:

Shifting trends in Budapest: Real estate prices, population declines, and creative housing solutions – VIDEO and more HERE
Home prices up again in Hungary

Featured image: depositphotos.com

September 20, 2024

August saw a big rise in home rental rates in Hungary, latest avarage prices here

Hotels in Budapest - budapest city autumn fall weather

Home rental rates in Hungary rose 9.9pc year-on-year in August, data compiled by the Central Statistics Office (KSH) from listings site Ingatlan.com show.

Rental rates in the capital increased 9.1pc, KSH said.

In a month-on-month comparison, home rental rates rose 0.5pc for the whole country and edged up 0.1pc in Budapest.

In H1, the monthly rental rate for a flat in the capital averaged HUF 250,000 (EUR 634). A home in a large city in the west of the country could be rented for HUF 178,000 (EUR 452)/month.

As we wrote today about “Airbnb issue in Hungary”, with low turnout and almost identical turnout, the VI district ordered a ban, details HERE.

Airbnb issue in Hungary: with low turnout and almost identical turnout, the VI district orders a ban

The local council told MTI on Monday that around 54pc of the residents of Budapest’s District VI, in the city center, voted for a homestay ban in a two-week referendum that ended Sunday.

The council said that of the 6,083 votes cast, 3,265 backed the ban, and 2,818 were against it. The 20.52 % participation rate was “well over” the rate for similar votes.

Opponents of the ban have provided figures to show that it will not make housing or the price of housing in Budapest any cheaper, as other bans in other world cities have proved. The mayor said that the majority of Airbnb apartment owners are a few wealthy businessmen. Still, on the contrary, the registration clearly shows that most owners (70%) rent out only one apartment.

The figures show that 80% of residents did not express an opinion or that the yes and no percentages are so close that with such a low turnout, it is impossible to determine the true intentions of the district’s residents.

In contrast, the mayor, who invested a lot of energy in campaigning for the ban, declared the result valid and acceptable.

As a result, the local council will ban short-term homestays from January 1, 2026.

This decision will cost the district budget minus €2 million a year. Local hospitality outlets will also experience a severe drop in revenues.

In related news, according to press reports, the Hungarian ruling parties also want to ban Airbnb-type apartments to drive tourists to hotels. On Sunday, Alexandra Szentkirályi, the political group leader of Fidesz in Budapest, even spoke about such a ban. It is important to note here that the vast majority of Hungarian hotels are owned by businessmen close to Fidesz, and the Prime Minister’s son-in-law also owns a number of luxury hotels.

Shifting trends in Budapest: Real estate prices, population declines, and creative housing solutions – VIDEO

budapest property real estate housing residential area university apartment hotel inflation

Over the past two decades, Budapest’s real estate market and population landscape have undergone significant changes, with varying trends across its districts. These shifts reflect broader transformations in the capital, from population declines in the city centre to rising property prices in certain areas, and even the emergence of tiny, innovative living spaces.

Population decline in Budapest’s core districts

Between 2001 and 2022, Budapest’s population decreased by 5%, with 17 out of its 23 districts experiencing a decline, G7 reports. Notably, the most severe population losses occurred in the central districts of the city, such as the V, VI, and VII districts. In the V and VII districts alone, populations dropped by 24%, while the VI district saw a 20% reduction.

Interestingly, while inner-city districts faced depopulation, areas on the outskirts saw growth. The XXIII district recorded nearly a 10% increase in population, with the XXII and XIII districts also experiencing significant growth, each over 7%.

The issue of population decline in the VI district has been highlighted in connection with a potential ban on Airbnb. Local authorities have raised concerns that short-term rentals could be driving residents away, a factor contributing to the district’s noticeable depopulation.

Real estate prices: rising but uneven

budapest property real estate housing residential area university apartment — Budapest, Hungary. Source: depositphotos.com

While population declines mark the city centre, the real estate market in Budapest has seen notable activity, especially over the summer. Prices nationwide have shown little month-to-month change, with a slight increase of just 0.1% between July and August. However, over the past year, real estate prices have continued to climb at a steady rate of 6.5%, a slight uptick from the previous annual figure of 6.4%, László Balogh, economy expert at ingatlan.com, told Economx.

In Budapest’s outskirts, specifically in the agglomeration of Pest County, real estate prices surged by 1.2% in July, while the rest of the country saw more mixed results. Despite this, the annual growth in Pest County remained the lowest in Hungary, at only 3.2%.

Central Budapest’s luxury real estate market saw some price adjustments recently. In the VI district, the average price per square metre for premium apartments dropped by 1% in just four weeks, from HUF 1.45 million (EUR 3,670) to HUF 1.43 million (EUR 3,618). This decline comes amid broader discussions about potential regulations targeting short-term rentals, like Airbnb. In mid-September, a referendum on banning short-term rentals is set to conclude in the VI district, with government actions on the matter likely to follow.

Despite these fluctuations, real estate remains a hot commodity in several Budapest districts, with average prices per square metre exceeding HUF 1 million (EUR 2,530) in 11 districts. Meanwhile, in four districts—XVII, XXI, XX, and XXIII—prices remain more affordable, with average prices still under HUF 800,000 (EUR 2,024) per square metre.

Creative solutions in Budapest’s housing market

Amid these changing trends, creative housing solutions have emerged in Budapest. The city recently gained attention for what could be Hungary’s smallest apartment. Located near Nyugati station, this 3.2-square-metre property originally served as a bathroom, but the owner has transformed it into a fully functional living space.

The compact apartment, currently available for rent on Airbnb, includes a kitchen area, bathroom, and sleeping loft accessible by ladder. Despite its small size, the apartment is cleverly designed to meet basic needs for a short stay. However, it lacks natural light, with only a small window by the bed and a ventilation system to provide fresh air.

This tiny apartment is also up for sale, along with a larger, 30-square-metre property, underscoring the city’s growing interest in unconventional housing solutions as real estate prices and demand continue to rise.

Read also:

Featured image: depositphotos.com

September 15, 2024

How would an Airbnb ban affect Budapest’s rental market?

Rent prices in Budapest reached a psychological barrier Budapest's rental market

Budapest’s rental market could undergo significant changes if Terézváros votes to ban short-term rentals such as Airbnb. An analysis by ingatlan.com suggests that such a ban might increase the supply of housing and lower prices in the district, where rates are currently higher than the city average.

Will Airbnb be banned in Budapest?

We have previously reported HERE that tourism experts are discussing potential changes to Airbnb regulations in Hungary, which could affect up to 16,000 properties in Budapest and 35,000 across the country, bringing significant changes to Budapest’s rental market. The proposed regulations might restrict Airbnb operations to 150-180 days per year, similar to policies already in place in other European countries. In Budapest’s Terézváros district, residents will vote in September 2024 on a potential ban on Airbnb—a decision that could have a serious impact on local accommodation providers.

These providers have launched the “Let Terézváros Live!” campaign, arguing that such a ban would damage tourism and lead to long-term problems, pointing out that international examples show no clear link between the presence of Airbnbs and rising rental prices. They warn that restricting private accommodations could drive tourists away from Budapest if suitable alternatives are not available.

Budapest’s rental market could face serious changes

As Telex writes, Budapest’s rental market and property sales could face significant changes if the Terézváros referendum results in a ban on Airbnb, according to an analysis by ingatlan.com. Such a ban could increase housing supply, potentially driving down property prices and rental costs in the medium term.

However, according to the opponents of the Airbnb ban, this assumption is not borne out by the examples of global cities, as nowhere has housing or apartments become cheaper, writes Helló Magyar.

Currently, properties in Terézváros are more expensive than the city average, partly due to the influence of Airbnb. The district’s average price per square metre is HUF 1.26 million (EUR 3,204), compared to the Budapest average of HUF 1.03 million (EUR 2,619). Meanwhile, rental prices in the district stand at HUF 275,000 (EUR 699), which is 10% higher than the city’s average of HUF 250,000 (EUR 636).

According to the latest census, 32% of properties in Budapest’s 6th district, Terézváros, are unoccupied, with around 2,700 used as short-term rentals such as Airbnb. This has contributed to higher rent and property prices in the area. If even half of these short-term rentals were converted to the long-term rental market, the supply in Terézváros would double, potentially lowering local rental prices in the short term. László Balogh of ingatlan.com suggests that if an Airbnb ban is implemented, property values in the district may stagnate, causing a ripple effect that could slow price increases across Budapest’s rental market and even affect other cities.

apartment to rent in budapest — Photo: Flatco

When will Airbnb’s fate be decided?

On 2 September, a referendum began in Terézváros, allowing residents to vote on whether to ban short-term rentals, such as Airbnbs, in the district. Locals have two weeks to cast their votes, either online or in person. Terézváros Mayor Tamás Soproni has emphasised the significance of this vote, stating that, unlike previous consultations, the outcome will be decisive, with the majority decision of residents being implemented. This decision could also determine the future direction of Budapest’s rental market.

Read also:

Featured image: depositphotos.com

September 9, 2024

Housing market: High costs in Hungarian cities make smaller towns and cities abroad more appealing

Budapest is considered one of the less affordable cities, according to the central bank’s comparison of the housing market. The dynamic growth of housing prices in Central and Eastern Europe over the past 4-5 years has narrowed the previously significant gap in price levels between the more developed regions of Europe and the rapidly developing Central and Eastern European countries, writes Pénzcentrum.

Although internal migration is relatively uncommon among Hungarians, it is still feasible to relocate to another part of the country for a job with better opportunities, education, healthcare, or family reasons.

The latest data from the Hungarian Central Statistical Office (KSH) shows that the majority of the population, 38%, resides in the eastern part of the country. Meanwhile, 32% live in the capital, Budapest, and Pest County, and only 30% of the country’s total population lives in the western part, known as Transdanubia. According to the 2022 census, the most populous of the nine county seats in the Transdanubian region is Pécs, with a population of 139,000. However, the population of all county seats has decreased since the 2011 census.

Budapest rent prices property prices exceeded psychological barrier russians real estate housing market — Photo: depositphotos.com

Despite the slightly reduced popularity of suburban areas around larger cities, which offer more space and natural surroundings, these areas remain highly sought after by families looking for a home. This trend partly explains the declining population in some county seats, according to Károly Benedikt, Head of PR and Analysis at Duna House. For example, Győr, which has the second-largest population (127,000), experienced the smallest decrease in permanent residents, at just 1.5%.

Housing affordability remains a challenge in Hungary, but renting in Budapest is cheaper than in many other regional capitals. While few new homes are being built in Hungary, they are still cheaper than those in Prague or Bratislava, according to a new housing market study.

Housing affordability in Hungary has not changed significantly since 2022, with wages in Hungary meaning that property remains expensive compared to other countries, as noted in the Deloitte Property Index 2024, published on Monday (read more in THIS article).

It is often cheaper to buy a home abroad than in the Hungarian cities’ housing market

Among the capital cities, Budapest ranks in the middle in terms of affordability, even though affordability slightly worsened from 2022 to 2023. “Looking at the housing market in 2023, for instance, the average price per square meter of new housing in Italy (EUR 2,118) was lower than in all four Visegrad countries. However, in Italy, second-hand housing is already cheaper than second-hand housing in the Czech Republic, Slovakia, and Poland,” said Gábor Kohári, a real estate consultancy expert at Deloitte Hungary.

According to G7, this trend is evident in the data: in Budapest last year, the average salary required 10.4 years of savings to buy a new 70-square-meter apartment, while the national average was 10.2 years. Hungary built the fourth fewest dwellings per 1,000 inhabitants among the 24 countries surveyed last year, a trend expected to continue in 2023, as it did in 2022.

Read also:

Hungarians go shopping abroad because Hungary became too expensive – Read here
New apartment prices in Budapest see highest increase among European capitals in 2023 – Read here

September 3, 2024

Here are the cheapest places to buy a house in the Budapest agglomeration

Hungary house real estate village garden rent Budapest agglomeration

It is common knowledge that real estate prices are constantly growing in the Hungarian capital. However, in 2024, the Budapest agglomeration’s real estate market surged, with a 70% increase in transactions too. Among the agglomeration’s sectors, the southern one was the most popular, while the northern sector offered more affordable options.

Shifting tendencies

Economx notes that following the post-pandemic property boom, the Budapest agglomeration has seen a stabilisation in its real estate market since 2022. The first half of 2024 witnessed a significant surge in transactions within the agglomeration, driven by renewed home creation subsidies. Transactions in the first half of 2024 increased by 3 percent compared to the same period in 2022 and by a remarkable 70 percent compared to the first half of 2023.

As demand soared, the average price per square metre rose by 6 percent to HUF 628,000 (EUR 1,593), with buyers spending an average of HUF 72 million (EUR 182,647) on properties—21 percent more than the previous year—while also opting for larger homes, with an average increase of 14 square metres in floor space.

The most popular area in the Budapest agglomeration

The Budapest agglomeration can be divided into six sectors. In the first half of 2024, the southern sector emerged as the most sought-after area within the Budapest agglomeration, accounting for 29 percent of all property sales, according to Duna House data. Homebuyers in this sector saw a 6 percent increase in average price per square metre, now at HUF 626,000 (EUR 1,591), and spent an average of HUF 72.6 million (EUR 184,193) on properties, which were about 116 square metres on average. This represents an increase of HUF 20 million (EUR 50,742) from the previous year.

The south-eastern sector also attracted significant attention, with 22 percent of buyers choosing this area. Here, the average price per square metre was HUF 561,000 (EUR 1,423), and properties averaged HUF 55.3 million (EUR 140,292), the lowest in the Budapest agglomeration. In contrast, the north-western sector witnessed the highest spending, with buyers investing an average of HUF 97.56 million (EUR 247,501) for homes around 140 square metres. This data highlights the diverse pricing and popularity across different sectors of the Budapest agglomeration.

The most expensive and the cheapest areas

While the southern sector is popular, it doesn’t lead in terms of price per square metre in the Budapest agglomeration. The western sector is pricier, with an average of HUF 679,000 (EUR 1,723) per square metre. In contrast, the northern sector offers a more cost-effective option, with the lowest average price per square metre at HUF 552,000 (EUR 1,400), where buyers typically spend HUF 62.9 million (EUR 159,576) on homes averaging 114 square metres. The eastern sector saw the fewest transactions, accounting for just 8 percent of sales, with buyers paying an average of HUF 591,000 (EUR 1,499) per square metre for 118-square-metre homes.

Read also:

August 26, 2024

Hungarian real estate prices show a record increase in Europe

Hungary house real estate village garden rent Hungarian real estate home in Hungary

The Hungarian real estate market has experienced a notable revival in 2024, reversing previous years’ downturns. Data from the Hungarian Central Statistical Office (KSH) shows a 36 percent increase in home sales. With the overall house price index reaching 291 percent of the 2015 base, Hungary leads the EU in housing price growth, highlighting a significant recovery and ongoing expansion in the market.

Hungarian real estate market in recovery

Economx reports that the Hungarian real estate market has shown remarkable signs of recovery in early 2024, following a downturn in previous years. According to the Hungarian Central Statistical Office (KSH), the number of homes sold increased by 36 percent in the first quarter of the year, reversing a 23 percent decline from the previous year. This resurgence comes with a notable price hike, with existing house prices rising by 5.3 percent and new house prices by 4.6 percent quarterly. The price increase was widespread, except for detached houses in eastern Hungary, where no significant change was observed.

Substantial growth

In 2023, the housing market saw a slower price increase, yet the overall house price index reached 271 percent of the 2015 base. Despite consumer price inflation outpacing nominal house price growth last year, leading to a 9.4 percent decrease in real prices, the first quarter of 2024 marked a significant shift. Real prices of existing and new dwellings were up by 4.0 percent and 3.4 percent quarter-on-quarter, respectively, and rose by 4.4 percent and 10 percent year-on-year. As of early 2024, the real price of existing houses stood at 74 percent above the 2015 base, while new homes were 111 percent higher, highlighting a substantial recovery and growth in the Hungarian real estate market.

Insane price per square metre

In the Hungarian real estate market, new housing prices have surged, increasing threefold since 2015, compared to a doubling in construction costs. In 2023, the average new home price rose to HUF 62 million (EUR 156 thousand) and further increased to HUF 65.8 million (EUR 166 thousand) in early 2024, with the price per square metre nearing HUF 1.2 million (EUR 3,020). Existing dwellings also saw price rises, with the average price reaching HUF 31.4 million (EUR 79 thousand) in early 2024, up from HUF 29.2 million (EUR 74 thousand) in 2023. In Budapest, the average price per square metre for existing apartments increased to HUF 918,000 (EUR 2,310).

Budapest real estate — Photo: Alpár Kató / Daily News Hungary

One of the biggest growths in Europe

In the first quarter of 2024, the Hungarian real estate market saw significant growth, with the aggregate house price index rising by 5.2 percent. This increase places Hungary at the top among EU countries, with house prices nearly 291 percent above the 2015 base, according to the Central Statistical Office (KSH). Across the EU, the aggregate housing price index stood at 149 percent of the 2015 base, with a modest 0.4 percent quarterly rise. Other countries like Bulgaria and Poland also experienced notable price jumps, while Denmark and France saw declines. Hungary’s domestic price increase of 290.7 percent is unparalleled, with Lithuania (227.7 percent) and the Czech Republic (214.3 percent) trailing behind.

Read also:

August 6, 2024

Renting or buying: What’s the better choice for students in Hungary?

university student renting buying apartment

In a recent episode of a podcast by Pénzcentrum, experts delved into the age-old question of renting or buying a home that many students and their families face. This dilemma becomes particularly pressing after university admission results are released, as students need to secure housing, often far from home.

Renting vs. buying: The debate

With high rental prices across Hungary, particularly in major cities like Budapest, the question of whether to rent or buy is crucial. Although renting may seem cheaper initially, Palkó István, a credit market expert, suggests that buying might be more beneficial in the long run—even if it involves taking out a mortgage, Pénzcentrum writes.

Current market conditions

Rental prices vary widely across different areas. In smaller university towns like Szeged, Veszprém, and Pécs, and in some of the cheaper districts of Budapest, monthly rents for a 50-60 square meter apartment range from HUF 150,000 to 160,000. In contrast, in the more expensive districts, especially in Buda, rents can reach HUF 250,000 to 280,000 or more.

Cost of buying

Currently, a small one-bedroom apartment in Budapest costs around HUF 40 million. With a 20% down payment, the monthly mortgage payment would be approximately HUF 240,000 to 260,000. While this is higher than some rental prices, the potential long-term benefits could outweigh these initial costs.

Calculations and future projections

budapest property real estate housing residential area university — Budapest, Hungary. Source: depositphotos.com

A detailed analysis compared the costs of renting versus buying over a five-year period. Starting with a monthly rent of HUF 166,667 and a mortgage payment of HUF 242,017, the analysis assumed a 20% down payment. It noted that students typically lack sufficient income to qualify for a mortgage themselves, so the loans are usually taken out by parents.

Over the five years, while the rental payments are expected to increase by 6.5% annually, the mortgage payments remain fixed due to a stable interest rate environment. By the end of this period, the rent would rise to HUF 214,411 per month, slightly less than the mortgage payment.

Long-term gains from buying

The key advantage of buying is the potential for property value appreciation. The analysis estimated that a property purchased for HUF 40 million could be sold for around HUF 54.8 million after five years, taking into account a similar 6.5% annual increase in property values. After repaying the remaining mortgage balance, this would leave the owner with approximately HUF 27.5 million, more than three times the initial HUF 8 million down payment.

Investment comparison

If a student or their family chooses to rent and invests the difference between the rental cost and what they would have paid for a mortgage, assuming a similar 6.5% annual return, the investment would grow to around HUF 14.9 million after five years. This amount, however, is still significantly less than the potential gains from property ownership.

Conclusion

The current market analysis suggests that, despite the higher initial costs, buying a property could offer greater financial benefits than renting. However, the decision depends on individual circumstances, including financial stability and future housing needs.

Read also:

Featured image: depositphotos.com

August 4, 2024

Buying a flat in Budapest has never been so easy

A digitised database of Budapest apartments has been created, making it easier to buy and sell flats.

This year, panel apartments have proven to be one of the most sought-after property types. One of the main reasons is their affordability compared to brick-built apartments, being available at 20-30% lower prices, according to data from ingatlan.com, as reported by Világgazdaság.

Average prices for panel apartments

panel building apartments budapest — Typical 10-storey large-panel system building in Budapest-Kispest. Photo: Wikimedia Commons/Rovibroni (Barna Rovács)

As of the end of June, the average price per square meter for panel apartments in Budapest was HUF 847,000 (EUR 2,155), whereas brick apartments averaged HUF 1.1 million (EUR 2,800) per square meter, showcasing a roughly 30% price advantage for panel apartments in the capital.

Among the major cities with significant panel housing markets, Debrecen’s average panel price was HUF 772,000 (EUR 1,964) per square meter, compared to HUF 940,000 (EUR 2,392) for brick apartments. In Pécs and Miskolc, panel apartments averaged HUF 442,000 and 613,000 (EUR 1,125 and 1,560) per square meter, while brick apartments were priced at HUF 456,000 and 748,000 (EUR 1,160 and 1,900) per square meter, respectively.

Balogh László, the lead economic expert at ingatlan.com, noted that the strong demand for panel apartments is driven not only by their lower prices but also by their typically favourable locations and good transport links.

Buying and selling flats to become easier

szeged renovated panel building — Renovated large-panel system building in Szeged. Photo: Wikimedia Commons/ User:Beroesz

Buying and selling panel apartments in Budapest is becoming even simpler. Ingatlan.com has conducted extensive research to obtain and digitise floor plans of panel apartments from the land registry offices. This enables accurate and official floor plans to be added to listings with just a few clicks, providing buyers with precise and reliable information about the properties. After completing the digitisation of Budapest’s panel apartment floor plans, ingatlan.com will next focus on the floor plans of panel apartments in Székesfehérvár and Kecskemét.

Panel apartments in Budapest

The highest number of panel apartments in Budapest can be found in the III. district, with over 35,000 properties. Other top districts include Újpest and Újbuda, with 25,000 and 22,000 panel apartments respectively. The largest housing estate in Budapest is in Békásmegyer, with 17,600 apartments, while the largest on the Pest side is in Újpest, with 15,200 apartments.

The lowest panel buildings are two stories high, found in Újpest and the XVIII. district’s Krepuska Géza estate. The tallest buildings, reaching 15 stories, are located in six housing estates: in the III. district on both the Danube and hill sides of Békásmegyer, in Óbuda, in Kelenföld in the XI. district, in the XIV. district’s Füredi Street housing estate, and in Csepel-Belváros in the XXI. district.

Read also:

July 7, 2024

Fancy buying a castle in Hungary on a budget? Here’s your opportunity – PHOTOS

In Hungary today, over 150 castles are up for sale, offering a unique blend of historical charm and investment potential. The majority of these majestic properties are located in Pest and Bács-Kiskun counties. Prices range dramatically, from as low as HUF 17.5 million (EUR 44,313) to a staggering HUF 12 billion (about EUR 30 million). Prospective buyers should carefully study the market to navigate this vast price spectrum and make informed decisions before buying a castle in Hungary.

The Hungarian castle market

Economx reports that a recent survey by ingatlan.com reveals that over 150 castles are currently for sale in Hungary, showcasing significant variations in the market. László Balogh, an economic expert, highlighted that the most expensive castle in Hungary, located near the Austrian border in Szombathely, is listed for nearly HUF 12 billion (EUR 30 million).

This property, featuring 41 rooms and a 65,000-square-metre plot, includes unique items such as Count István Széchenyi’s bookcase and Count Gyula Andrássy’s bed. Documented since the 16th century, the castle was fully renovated in 2004 and gained approval for a thermal spring in 2021. Therefore, the priciest castle in Hungary is surely worth its price.

castle near Szombathely for sale — Source: ingatlan.com

Prices vary majorly for a castle in Hungary

The Hungarian castle market displays a vast range in both quality and price. The cheapest castle, a 9-room historical monument in Tibolddaróc, Borsod-Abaúj-Zemplén county, is listed for less than HUF 18 million (EUR 45,574) but requires significant renovation. This makes this unique building the cheapest castle in Hungary at the moment. Sellers are primarily targeting investors with a vision for the property’s potential. On average, a Hungarian mansion costs nearly HUF 300 million (EUR 759,571), offering around 600 square metres of living space on a 6,000 square metre plot.

cheapest Hungarian castle — Source: ingatlan.com

Diverse prices, diverse conditions

László Balogh, an economic expert from ingatlan.com, highlighted the diverse conditions of castles, from modern properties to those needing extensive work. In Budapest, the average castle price is HUF 1.5 billion (EUR 3.8 million), while the lowest average is in Tolna County, with an average of around HUF 22 million (EUR 55,728). Of the 151 mansions listed, Bács-Kiskun and Pest counties have the most for sale, with 17 each. Veszprém and Szabolcs-Szatmár-Bereg counties stand out in terms of median floor area, with one notable mansion in the latter on a plot exceeding ten hectares.

Something old, something new

Economx’s exploration was prompted by a notable advertisement for a castle in Recsk, Mátra, priced at HUF 229 million (EUR 580,062), comparable to a spacious family house in Budapest or its suburbs.

This highlights the broader issue of castle preservation in Hungary. According to Regő Lánszki, the State Secretary for Construction, the government aims to involve private capital for the sustainable operation of castles. Despite efforts, including the restoration of over a dozen castles with state and EU funds under the National Castle and Forts Programme, many of Hungary’s 1,500 castles have disappeared or deteriorated, requiring ongoing financial support for their upkeep. Therefore, buying a castle in Hungary offers a unique opportunity to make something new of old castles.

Read also:

July 1, 2024

Rental prices in Budapest reach a psychological barrier, contrary trend in other cities

Rental prices have continued to rise in Budapest, with the average monthly fee now exceeding HUF 250,000 (EUR 630). This represents a psychological barrier for both the capital and Hungary as a whole. Meanwhile, the trend is the opposite in rural cities, where rental prices have decreased following last year’s significant surge.

High rental prices in Budapest*

According to 24.hu, the average monthly rental price for brick apartments in Budapest has grown to HUF 259,000 (EUR 650), marking a 9.9% increase compared to last year. György Kosztolánczy, the CEO of Otthon Centrum, noted that in rural areas, the average rental price has fallen to HUF 160,000 (EUR 400), which is 4.6% lower than in 2023. Last year saw an extraordinary 33% average price rise in rural Hungary.

Renting is most expensive in Budapest’s 6th district, where the average rental price is HUF 339,000 (EUR 860). The 2nd and 5th districts follow, with average rents of HUF 335,000 and 292,000 (EUR 850 and 740) respectively. The 3rd and 11th districts in Buda also feature prominently on the list.

Housing market Rental prices Budapest downtown — Photo: facebook.com/karacsonygergely

On the Pest side, prices are generally lower. The average rental price in the 7th and 8th districts is HUF 225,000 (EUR 570), while the outer districts of Budapest are the cheapest, with prices ranging from HUF 180,000 to 200,000 (EUR 450-500).

Larger apartments more affordable in outer districts

Prices have increased by 5-20% in most districts, with the 11th district in Buda being a notable exception, which is good news for university students.

Unpleasant news for subtenants is that the price rise has been most significant for small, one-room apartments, increasing by 20.9%.

The smaller the flat, the smaller the price differences between districts. For instance, the average rental price for a one-room apartment in the city centre is HUF 180,000, compared to HUF 165,000 (EUR 450 and 420) in the outer districts. This difference becomes more pronounced for two- and three-room apartments.

Downtown of Budapest rental prices — Photo: Daily News Hungary ©

Panel buildings offer cheaper options

The average rent for a three-room apartment in the city centre is HUF 330,000 (EUR 830), compared to just HUF 213,000 (EUR 540) in the outer regions of Pest.

In rural Hungary, some cities are more expensive than others. Debrecen, Győr, and Székesfehérvár, centres of the Hungarian automotive industry, are among the more expensive, with average rents around HUF 200,000 per month. In contrast, Szeged, Pécs, and Kecskemét are much more affordable.

Of course, renting an apartment in panel buildings is cheaper everywhere. In Budapest, average prices range from HUF 180,000 to 200,000 (EUR 450-500). In rural cities, they cost “only” HUF 125,000 to 137,000 per month.

Read also:

Renting an apartment in Budapest is almost a luxury: prices approach those in Madrid – Read more HERE
Housing market: Foreigners buy up the countryside, rents in Budapest cheapen

June 26, 2024

Renting an apartment in Budapest is almost a luxury: prices approach those in Madrid

In 2023, rents for centrally-located, newly built or recently renovated apartments in Budapest rose by 17% compared to the previous year, marking the third-highest increase in the entire European Union. The Hungarian capital now ranks mid-range in Europe in terms of prices, with renting an apartment in Budapest almost as expensive as in Madrid and Zagreb.

Eurostat conducted a study comparing the relative cost of living in EU capitals, with the data for Hungary provided by the expert team at Duna House. The findings were presented on Monday by Károly Benedikt, Duna House’s head of public relations and analysis, ATV reports.

Budapest property prices exceeded psychological barrier russians real estate — Photo: depositphotos.com

Renting an apartment in Budapest costs an arm and a leg

.Eurostat surveyed the prices of rental apartments used by international officials. Therefore, the prices do not represent the average rental market but instead show the monthly tariffs of apartments in good or excellent condition, in well-equipped city centre locations, built or significantly modernised in the last 10 years at the latest.

For Budapest, the survey included sublets of 1-3 rooms, ranging between sizes 110-130m², 60-80m², and 40-60m², located in central districts (districts I, II, III, XI and XII in Buda and V, VI, VII, VIII, IX, XIII in Pest).

Renting an apartment in Budapest — Budapest inner city. Photo: Pixabay

According to the data from Duna House, the average rents in2023 for apartments in Budapest were as follows:

One-bedroom apartments: EUR 890 per month
Two-bedroom apartments: EUR 1,300 per month
Three-bedroom apartments: EUR 1,700 per month

The EU-wide survey found that between 2022 and 2023, rents in Zagreb and Sofia increased the most, by 20% in both cases. The Hungarian capital saw the third-highest increase, with rents for central, well-maintained apartments rising by 17% last year compared to 2022.

Overall, Dublin is the most expensive capital city in the European Union in terms of rent, with tenants also paying high prices in Luxembourg and Paris. Stockholm and Copenhagen are the fourth and fifth most expensive cities for average monthly rent.

.In two cases, Eurostat researchers found a decrease in rents in 2023: a slight 1% drop in Helsinki and a more significant 13% downturn in Vilnius.

Budapest ranks midfield in the Central European region

Among the capitals of neighbouring countries, the cost of renting a property increased by 13% last year in Ljubljana, 11% in Vienna, 10% in Bucharest, and 7% in Bratislava compared to 2022, while rents in other cities increased by between 2% and 15%.

Vienna Austria city — Vienna at night. Photo: Pixabay

Overall, modern rentals in the city centres of Berlin, Prague, Vienna and Ljubljana are the most expensive, with prices as follows:

One-bedroom apartments: EUR 1,150-1,250 per month
Two-bedroom apartments: EUR 1,550-1,600 per month
Three-bedroom apartments: EUR 2,050-2,150 per month

The cost of renting an apartment in Budapest follows directly after, in fourth place, with the aforementioned monthly prices. By comparison, it is cheaper to rent an apartment in cities such as Bratislava, Warsaw, and Bucharest, where average monthly rents are:

One-bedroom flats: EUR 580
Two-bedroom flats: EUR 900
Three-bedroom flats: EUR 1,200

Read also:

The biggest increase in real estate prices happened in these Hungarian towns – HERE
Real estate market: Average price of newly built apartments in Budapest shockingly high – Read HERE

June 22, 2024

The biggest increase in real estate prices happened in these Hungarian towns

In its latest analysis, money.hu has compiled a top 10 list of the most dynamically rising Hungarian towns in the last 5 years. The top list, compiled using data from ingatlan.com, includes several settlements in Baranya and Borsod-Abaúj-Zemplén counties. The experts also discussed how the development of lending rates has affected property prices.

Real estate trends

Trends in the real estate market over the past 5 years show that property prices have not risen fastest in the most up-and-coming and expensive areas, but rather in developing regions. Property prices in the top 10 most expensive municipalities have increased five to six times. The trends may even be interesting from an investor’s point of view, as the increase in property values in some developing rural municipalities can be of considerable benefit to those who have a good appreciation of the likely development of the property market in the area. And local property owners may find themselves in the favourable position of seeing their wealth increase significantly through the homes they own.

The following towns have shown the highest house price growth in the last 5 years.

City	County	Price per m² (thousand HUF) May 2019	Price per m² (thousand HUF) May 2024	Change (%)
Zalaszentmihály	Zala	70	441	530%
Bogád	Baranya	150	940	527%
Ferencszállás	Csongrád-Csanád	56	348	521%
Mezőszentgyörgy	Fejér	63	356	465%
Ónod	Borsod-Abaúj-Zemplén	59	321	444%
Adács	Heves	84	449	435%
Kóny	Győr-Moson-Sopron	94	499	431%
Magyarszék	Baranya	74	364	392%
Bodrogkisfalud	Borsod-Abaúj-Zemplén	64	314	391%
Szigetbecse	Pest	166	799	381%
source of data: ingatlan.com

What might be behind the boom in the property market in a particular region?

Favourable developments in the local labour market, for example, due to new investment, relative wage growth and population growth, all have an impact on house prices in a given area. These factors should be taken into account when considering where to consider buying a home as an investment. “It would not be surprising if in five years’ time the municipalities of Hajdú-Bihar, Csongrád-Csanád and Zala – and even Borsod-Abaúj-Zemplén – were among the most appreciating regions in terms of real estate. It is quite certain that the significant investments announced in recent months will stimulate property buying and may also increase the value of property in the municipalities concerned,” – said László Balogh, lead analyst of ingatlan.com.

Of course, individual house prices can also be influenced by a number of different things, such as the quality of the property, the number of rooms and bathrooms, the distance to schools and kindergartens, the accessibility of shopping centres and public transport, and the characteristics of the local area.

The money.hu experts have also highlighted that a developing region or municipality can already be on the radar of banks. Rising property prices are providing credit institutions with more collateral, making them more willing to lend and relaxing their pre-set conditions.

“There are clear signs of improving housing market developments from end-2023: historically high employment, rising real wages and consumer confidence, and a more favourable interest environment. In the property market, there is generally a strong correlation between interest rates and house prices. When market interest rates are more favourable, the housing market experiences higher demand, which typically pushes up house prices. This is supported by the latest housing price index from May from ingatlan.com, which shows that the pace of house price increases has become more dynamic, but there can be significant differences between regions according to the price index, which shows the up-to-date price trends,” – said Levente Korponai, head of money.hu.

Read also:

June 14, 2024

Hungarian government to spend huge amounts on worker housing

workers' accommodation hungarian government

The Hungarian government is launching a HUF 20-billion subsidy programme for the construction of workers’ housing, the Hungarian News Agency (MTI) reports, citing a statement by the Ministry of National Economy. In the next few years, 25-30 new workers’ accommodation for 80-200 people could be built with the Hungarian government’s support. The ministry says they are not being built for foreign guest workers.

Hungarian government launches subsidy scheme

A HUF 20-billion subsidy programme is being launched for the construction of workers’ housing, MTI reports, based on a statement by the Ministry of National Economy. In the next 3 years, 25-30 new workers’ shelters for 80-200 people could be built with the Hungarian government’s support. Businesses have until 30 September to apply for funding, Forbes reports.

The Hungarian government pledges that applications will be assessed under strict criteria “in line with the strict limits on the employment of guest workers”. These conditions include the following:

foreign workers can only be accommodated in the newly created worker hostels if no Hungarian workers apply;
at least half of the workforce in these accommodations will have to be Hungarian, which the ministry expects will “greatly facilitate the mobility of the domestic workforce within the country” and contribute to reducing labour shortages.

Sanctions against workers’ accommodations

According to Telex, if the proportion of Hungarian workers falls below 50% during the application period, the owner must repay part of the subsidy. Sanctions would also be imposed on accommodation establishments whose occupancy rate falls below a certain level. In addition, the applicant must commit to operating the accommodation built with the subsidy as a workers’ accommodation for at least 10 years. However, compared to previous similar applications, it is now possible to accommodate trainees, casual or seasonal workers.

Telex reports that new hostels may be needed because despite the fact that the “anti-immigration government does not advertise this much”, more and more foreigners are working in Hungary. In November 2023, a total of 98,500 foreigners were employed in the country.

Of these, more than 76,000 are third-country nationals, i.e. from outside the European Union and EFTA. At the end of 2020, the number of foreign workers was only around 35-40,000. They mainly come from Serbia and Ukraine but are increasingly being replaced by Asian workers.

The strongest trend is the dramatic increase in the number of third-country nationals coming to work in Hungary, while fewer people from neighbouring countries have come to work in the country. Most of them come from the Philippines.

Read also:

May 8, 2024

Budapest mayoral candidate Vitézy promises thousands of units of affordable housing

Budapest mayoral candidate promises thousands of units of affordable housing (Copy)

Dávid Vitézy, a candidate for mayor of Budapest backed by opposition LMP and a local association, unveiled his manifesto on Friday, promising to take the running of the city away from party politicians and put it in the hands of professional managers and vowing to build thousands of units of affordable housing.

Vitézy promises amusdment park,too

Vitézy also pledged a new transport police force and five new tram lines, as well as cooperation with the central government on revamping the HEV suburban railway.

He also promised to “fight” to improve hospital conditions and to create new public parks, stressing the importance of green public areas and high-standard Danube river banks.

The economist who specialises in transport and mobility also pledged to put a scheme in place to resurface many of the city’s roads and to provide a “culture coupon” worth 10,000 forints to all Budapest residents.

Also, he said a new animal protection shelter would be established, and he promised that Budapest would once again have an amusement park.

101-point manifesto

He also called for giving new momentum to the upgrade of prefab homes, the protection of Budapest’s built heritage and vowed to establish a consulting office aimed at assisting in the upgrade of apartment buildings.

He said his manifesto also included the revamp of two dozen major junctions in the city’s outer districts, and he pledged to immediately call a new tram tender if elected. He also promised that one-third of Budapest’s public transport bus fleet would be electric by the end of his term.

Vitézy said the drafting of his 101-point manifesto had been coordinated by 25 experts and had taken into account the opinions of 5,673 Budapest residents. The candidate said he considered the document “a kind of job application”.

He called for “real urban development”, which he said meant that “instead of saying no to everything and . making excuses”, the city’s leadership needed to develop Budapest and build partnerships in line with a clear strategy.

Vitézy called for cooperation between Budapest and the European Union, international investors, the districts, the city’s agglomeration and the government “wherever we can find common ground”.

Budapest became battlefield

He said he was running for mayor because he believed no one was addressing Budapest’s biggest problems. He insisted that “the two major political sides have turned Budapest into a battlefield” and were “constantly pointing the finger at each other and complaining” instead of developing the city.

He said the capital was made up of more than just “the downtown tourism hub”, but the outer districts had been “abandoned” by politicians, and it was time to change that.

Vitézy criticised incumbent mayor Gergely Karacsony’s time in office, saying he had failed to deliver on most of his campaign promises. He said the administration had failed to implement a vigorous green city policy and had become too focused on national politics.

Meanwhile, Koloman Brenner, the Jobbik-Conservatives candidate, said on Facebook today that he was standing aside and would support Vitézy.

LMP publishes green manifesto

Foreign Minister Péter Szijjártó said on Friday that he had again spoken with the Head of the Office of the President of Ukraine Andriy Yermak by phone on the rights of the ethnic Hungarian population in Transcarpathia, in the west of Ukraine.

Szijjártó said in a post on Facebook that they were in agreement that some progress had been made over the past weeks by the bilateral working group set up to address the matter but there was still a lot of work to be done. As a result, it was agreed that the working group would meet again in the second half of next week, he added.

Read also:

Urban development expert Vitézy candidate for Budapest mayor – Read more HERE
Astonishing VIDEO and PHOTOS of Budapest Airport’s ‘secret, silent’ Terminal 1 – click HERE for more

April 19, 2024

Helpful initiative: Budapest launches Home Agency to match renters with homeowners

Budapest Mayor Gergely Karácsony announced the establishment of a city agency to match renters with homeowners at a press conference on Wednesday.

Karácsony said the city was working to “exploit hidden reserves”, adding that Budapest had a lot of vacant, unrented units, creating “waste and shortage” on the housing market at the same time. The mayor also said it was “very important” to increase the ratio of municipally owned rental units in the city.

Budapest Home Agency

The new Metropolitan Home Agency (Fővárosi Lakásügynökség) will ensure that rent and utilities bills are paid, taking on “practically all” of the risk related to renting out flats in the city, said Vera Kovács, the agency’s head.

Owners of flats between 20sqm and 100sqm, in good condition, are being invited to join the scheme. Soon, owners of flats in need of repair or renovation will also be allowed to register for the programme.

Karácsony’s Facebook post announcing the establishment of the agency:

Read also:

Featured image: depositphotos.com

March 20, 2024