Hungarian economy

Good news: Hungarian OTP Bank earnings much higher than expected while MOL struggles

OTP Bank fee increase

OTP Bank, Hungary’s biggest commercial lender, booked consolidated after-tax profit of HUF 318.5bn in the third quarter, climbing 8pc from the base period after adjustments, an earnings report released ahead of the opening bell on Friday shows.

Earnings beat analysts’ HUF 290.6bn consensus. OTP’s foreign units generated 64pc of after-tax profit during the quarter. Net interest income increased 15pc to HUF 444.2bn. Net revenue from commissions and fees rose 10pc to HUF 137.5bn.

Risk costs came to HUF 27bn for the quarter, including HUF 15bn in credit risk costs, mainly at OTP’s banks in Russia and Bulgaria, as provisions were released in Hungary. The divestment of OTP’s Romanian bank had a one-off positive impact of HUF 10.5bn at group level. OTP also booked a HUF 16bn fair value adjustment on subsidised home loans and prenatal baby support credit in Hungary.

Hungarian OTP Bank leaves Romania after 20 years
Photo: PrtScr/Youtube

OTP had total assets of HUF 41,557bn at the end of September, up 5pc from twelve months earlier. OTP affirmed earlier management guidance: FX-adjusted performing loan volume growth could exceed the 6pc in 2023, while the lender’s consolidated cost-to-income ratio could be around 45pc. OTP said there was no information to be announced about significant acquisitions for the time being, but added that the lender continued to seek potentially value creating acquisition opportunities.

All subsidiaries of the OTP Bank performing well

László Bencsik, OTP’s deputy-CEO, told journalists after the publication of the report that the lender’s profitability was “outstanding” in Q1-Q3 with ROE of 24.9pc. OTP’s liquidity and capital position are stable, while its NPL ratio improved by 0.3pp to 4.0pc, he added. In Hungary, OTP’s mortgage contract volume rose by a factor of close to 2.5 in Q1-Q3, while outlays of personal loans climbed over 60pc, beating the market average, he said. Demand for corporate credit is “modest”, while stock of loans to microbusinesses and SMEs edged up 4pc, he added.

OTP’s Uzbek unit, Ipoteka Bank, acquired last year, generated profit of HUF 42bn in Q1-Q3, he said. Fielding questions, Bencsik said Hungary’s transactions duty was “one of a kind” in the world and hurt Hungary’s competitiveness as well as creating a market distortion for banks competing with fintech companies such as Revolut. From next year, the transactions duty will raise a typical client’s monthly charges by HUF 300, he added.

MOL Q3 earnings fall

Third-quarter pre-tax profit of Hungary’s MOL slipped 24pc year-on-year to USD 503m, the oil and gas company said in an earnings report published ahead of the opening bell on Friday. Net revenue fell 6pc to USD 6.863bn.

Chairman-CEO Zsolt Hernadi said the company had closed a “mixed quarter” in September. Performance of the downstream business weakened amid the “challenging” macro and fiscal environment, but that was counterbalanced by a favourable upstream performance, supported by mature assets in Hungary, he added.

MOL fuel station
Photo: Creative Commons

He said the flat performance of the consumer services business, in spite of a 5pc drop in the number of petrol stations, was a “very good sign”. He added that higher volume of the deposit-return system run by MOL unit MOHU showed the company’s entry into the waste management business was a good step and augured “great potential” for further development. Pre-tax profit reached USD 1.419bn for the period Q1-Q3, putting the company “on track” to meet full-year guidance for around USD 1.6bn, MOL said.

Read also:

  • OTP Bank shocks customers with fee increases – read more HERE
  • New payment solution qvik revolutionses payments in Hungary starting September

PHOTOS: Chinese mini library inaugurated, China very proud on Szeged BYD plant

Chinese mini library BYD project Chinese ambassador

EV maker BYD’s plant under construction in Szeged (SE Hungary) is a model for cultivating ties between China and Hungary, Gong Tao, China’s ambassador to Hungary, said on Friday.

After inaugurating a Chinese mini library at the Déri Miksa Technicum in Szeged, Gong Tao said ties between Hungary and China had never been better, adding that a visit to Budapest by Chinese President Xi Jinping in May had given new impetus to bilateral relations.

The ambassador met with László Botka, the mayor of Szeged, Andras Magori, the head of the Csongrad-Csanad County council, and leaders of the University of Szeged during his visit to the city on Thursday and Friday.

He said construction of the BYD plant in Szeged was going smoothly and production was expected to start in the second half of 2025. He added that Chinese companies could help Hungary in the green transition, support high-quality development and contribute to putting the country at the forefront of Europe’s electric vehicle industry.

Here are some photos of the plant under construction. It will be the world’s largest EV maunfacturing plant:

China-Hungary cooperation praised

He acknowledged that all Chinese companies must abide by local rules and accept obligations with regard to environmental protection and sustainability. He also pointed to the importance of working to forge ties with local communities for those companies.

China and Hungary’s cooperation shows well the benefits of connection between the East and West, which promotes world peace and development, he said.

He added that bilateral ties were strengthening in the areas of science, technology, higher education and vocational education.

Students at the Déri Miksa Technicum are being exposed to the Chinese language with the support of the Confucius Institute in Szeged and most have said they would like to join a language course.

Chinese SAIC Motor takes over local importing of MG brand

China’s SAIC Motor is taking over the local importing of its MG car brand from Duna Motors Disztribúció, the parties announced on Thursday. SAIC Motor CEE will take over the importing activities from the start of 2025. Duna Motors Disztribúció started importing MG cars in September 2022. MG’s market share in Hungary stands at 1.9pc at present. This year, sales of the models are expected to exceed 1,500.

Read also:

  • Speaker Kövér: Hungary, China have similar views of the “present and future of the world” – read more HERE
  • EXCLUSIVE NEWS: Mysterious death on Chinese flight in Budapest, airline stays silent – details in THIS article

Hungary’s property market set for 2025 boom – Expert tips on the best places to invest

Property market boom expected in 2025 in Hungary

Real estate experts discussed future trends concerning the Hungarian property market at the Portfolio Investment Day conference. They agreed that tremendous money could be transferred to the sector next year because one of the most popular Hungarian government security will expire and 20% of that money can be spent on buying property. That may mean people can look for good investment opportunities with more than HUF 1,300 billion (EUR 3.2 billion).

Billions of euros may flow into the Hungarian property market

The Premium Hungarian Government Security (PMÁP) is one of the most popular government securities with a value of more than HUF 6,500 billion (EUR 16 billion) containing residential savings. The government security will expire in 2025 and the new cycle’s interest rate will be lower, so experts believe that only a fraction of that money will remain in this form of investment.

According to Gábor Bánhalmi, a senior strategist of the K&H Fund Management, 40-50% of the money will remain in state bonds. Meanwhile, people are expected to buy shares and foreign currency for 20%, 10% will be spent on consumption, and 20% on buying property.

Budapest rent prices property market prices exceeded property in hungary renting in Hungary rental
Photo: depositphotos.com

Dávid Valkó, a senior analyst of OTP Jelzálogbank, said property in Hungary was a profitable investment in the past 5-10 years. Furthermore, Hungarians gladly invest their money in real estate, and that trend is not expected to change in the short run.

Experts recommend buying property in Budapest

Mr Valkó added he would buy newly-built apartments in the rust zone of Budapest and the downtown districts of the capital. He said the number of purchases in the sector may rise in 2025 reaching even 150 thousand. That number would be ideal for the market, he added. That would bring an increase in property prices. He cleared that the yield after renting out an apartment is around 4% after paying the taxes, provided you do not have a loan.

lake balaton property real estate places to live
Lake Balaton. Source: depositphotos.com

Attila Szűcs, the owner of Ingatlanpáholy, said buying property was a risk-averse strategy because it is not dependable on global changes like wars. He would buy property in Budapest and the outer district (14, 13, 15, 17). He agrees that there will be an increase in the number of purchases. He believes that the number of transactions will reach 140 thousand. In 2026, despite the restrictions of the Airbnb sector, there will be an 8-10% rise in property prices. However, Budapest’s 6th district (Terézváros) will not be affected because they banned Airbnb.

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Vodafone disappears from Hungary in 2025: here’s the new name

Vodafone Hungary service provider

4iG will rebrand the commercial telecommunications services of its units Vodafone Magyarország, DIGI, Antenna Hungaria and Invitech, the listed ICT company said on Wednesday.

The services of the businesses will share the single “One” brand from January 1, 2025. The units will be merged into Vodafone Magyarország’s legal successor, One Magyarország, by the second half of the year. One Magyarország will be Hungary’s second-largest telco.
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65 brand-new Mercedes-Benz Citaro buses come to Budapest

65 brand-new Mercedes-Benz Citaro buses come to Budapest

Budapest public transport company BKV will take delivery of 65 new Mercedes-Benz Citaro K buses in the second half of 2025, Gergely Karácsony, the capital’s mayor, said on Facebook on Wednesday.

BKV will upgrade about 8pc of its fleet with the procurement, Karácsony said.

65 new buses for Budapest (Copy)
Photo: FB/Karácsony

Hungary committed to becoming R+D centre for battery tech

The head of the Hungarian Investment Promotion Agency (HIPA) highlighted a commitment to make the country the leading R+D centre for battery technology in Europe by 2030 addressing the Hungarian Battery Week conference in Budapest on Wednesday, HIPA said. Istvan Joo specified a commitment to make Hungary the leader in Europe in terms of registered patents in the European battery sector and said work was underway to make the country one of the leading European centres for battery industry related higher education and vocational training.

He added that making Hungary a hub for business service centres in the battery industry was another pledge. Hungary is committed to maintaining its position among the top five global players in battery production throughout the decade, he said. He added that the country was striving to create a “complete ecosystem” for battery manufacturing and had developed a comprehensive supplier network. Hungary encourages new partners to bring high value-added activities to the country and convinces companies that already have a presence in the country to move towards R+D activities and university collaborations, he said. Joo noted that lithium-ion batteries were Hungary’s most significant export product in 2023, accounting for 6.4pc of the total.

Chinese CATL will soon start production

Since 2016, HIPA has supported battery manufacturing investments with a combined value of around EUR 24bn that are expected to create almost 33,000 jobs, he said. In addition to the plants of Samsung SDI on the outskirts of Budapest and SK On group’s in Komarom and Ivancsa that are already operating, Chinese battery maker CATL will soon start production at its base in Debrecen, while EVE Power’s project in Debrecen and Sunwoda’s investment in Nyiregyhaza are progressing well, he added. Joo said that China was “at the heart” of the revolution in electrification, pointing out that of the ten biggest battery makers in the world, with a 95pc market share, six were Chinese, three South Korean and one Japanese.

 

CATL Germany
CATL in Germany. Photo: facebook.com/drpappl

“It is clear that the East has taken over the industry on a global scale,” he added. Joo said the government’s Eastern Opening policy had helped to make Hungary a “meeting point” between West and East, for big German car makers and Asian new energy suppliers. He added that the government’s strategy of connectivity, a demonstration of a policy of economic neutrality, had been a window of opportunity for cooperation between Eastern and Western companies.

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Featured image: depositphotos.com

Good news: MOL extracts more oil in Hungary than previously hoped for

MOL extracts more oil in Hungary than previously hoped for (Copy)

Hungary’s MOL has boosted daily production at a field in Vecsés, on the outskirts of the capital, by 600 barrels of oil with the addition of a third well, the oil and gas company said in an announcement on the website of the Budapest Stock Exchange on Wednesday.

Daily production at the Vecsés field now stands around 4,000 barrels, close to 30pc of MOL’s domestic production and 4pc of group-level production.

Archibald Schubert, managing director of MOL E+P Hungary, said the company planned to plough close to HUF 100bn into exploration and production in Hungary over the next three years.

MOL extracts more oil in Hungary than previously hoped for (Copy)
Photo: PrtScr/YT/MOL

Read also:

  • Hungary’s dependence on Russian oil is problematic, according to analyst – Here’s why

Trump’s victory threatens forint with collapse, Orbán cabinet happy and congratulates

Trump's victory threatens forint with collapse (Copy)

The Hungarian forint is at a 2-year low against the American dollar following Donald Trump’s decisive victory. All regional currencies are struggling because the strong dollar is bad news for emerging currencies like the Czech koruna or the Polish zloty. Meanwhile, PM Viktor Orbán, who established a strong relationship with Trump in the past few years, congratulated the newly-elected President and talked about a “spectacular victory” and “the greatest comeback in Western political history”. FM Szijjártó expressed hopes towards a ‘top shape’ cooperation with America again.

Trump’s victory did not help the forint. The American dollar is at a 2-year-high against the Hungarian national currency and all emerging currencies are struggling in the region. The USD was at a historic peak against the forint on 8 October 2022 because of the economic difficulties following the energy crisis and the war in Ukraine.

The euro is also at a 22-month peak against the forint. The last time the EU currency was stronger was in December 2022 with 418. The exchange rate is now at 410/EUR but it was 412 earlier today.

Orbán says President Trump will end the war in Ukraine Orbán cabinet
Photo: FB/Orbán

PM Orbán congratulates, talks about “spectacular victory”

Prime Minister Viktor Orbán commented on the US presidential election on Wednesday and said “I see a spectacular victory, perhaps the greatest comeback in Western political history, a huge fight”. Speaking about Donald Trump, Orbán said that the Republican politician had first faced prison and a confiscation of his assets. He later faced an assassination attempt while “the whole media world of the US turned against him”, Orbán said, adding that “he has still won.”

He said it gave a great encouragement to everyone “who believes in will, struggle and perseverance, and a hope for peace for the world.”

It was hoped early this year that pro-peace forces would become a majority in the Western world by the end of the year and would defeat the pro-war camp, the prime minister said, adding that “there is now a great chance” to achieve that. He expressed hope for the economy to gain heat and for US-Hungary relations “to return to their golden era.”

trump orbán 2024
Photo: Facebook/Orbán Balázs

“We have a number of plans that we can carry out together with President Donald Trump in the coming years,” Orbán said in a video published on Facebook. Interestingly, Orbán was addressed as President in the Reels video.

US-Hungary cooperation can get into a top shape

“The decision of American voters gives us good hopes that political cooperation between the United States and Hungary could again get into a top shape,” the foreign minister said on Facebook on Wednesday morning.

Péter Szijjártó highlighted that bilateral political relations had been at their peak during the first presidency of Donald Trump, when “dialogue and talks were in the focus of efforts aimed at resolving conflicts that jeopardised global security”. “We have similar positions concerning peace, illegal immigration and the protection of the family,” the minister said.

“We have the best ever chance so far for peace to return to Ukraine after almost a thousand days,” he added.

‘This is a magnificent victory for the American people that will allow us to make America great again,’ Trump says

US Republican presidential candidate Donald Trump early Wednesday thanked Americans for the apparent “honor of being elected” to the nation’s highest office, Anadolu news agency wrote.

“I want to thank the American people for the extraordinary honor of being elected your 47th president and your 45th president,” Trump told supporters in Palm Beach, Florida, referring to his earlier term in office, in 2017-2021, before Joe Biden won four years as the 46th US president.

According to Fox News projections, Trump ensured victory after defeating his Democratic rival Vice President Kamala Harris in Tuesday’s presidential election.

“This is a magnificent victory for the American people that will allow us to make America great again,” Trump added.

Pledging to fight for every citizen, he said: “We’re going to help our country heal.”

The win would make Trump only the second US president to serve non-consecutive terms, following Grover Cleveland, who served two separate terms in the late 1800s, with President Benjamin Harrison in between.

‘America has given us an unprecedented and powerful mandate’

Winning the vote was “very nice,” said Trump.

“America has given us an unprecedented and powerful mandate. We have taken back control of the Senate,” he added.

Turning to border security, an issue he pressed on the campaign trail, he promised to “fix” the borders.

“We’re gonna have to seal up those borders … We want people to come back in, but we have to let them come back in, but they have to come in legally,” Trump said.

Stressing security, he said: “We want to have security. We want to have things be good safe … We want a strong and powerful military, and ideally we don’t have to use it.”

Trump says he is ‘working to stop wars,’ not start them

During his first term, the US had no wars for four years, except for the defeat of terrorist group Daesh/ISIS, Trump said.

“We defeated ISIS in record time but we had no wars. They said: ‘He will start a war.’ I’m not going to start (one), (I’m) working to stop wars. But this is also a massive victory for democracy and for freedom,” he added.

Stressing that being the US president is “the most important job” in the world, Trump claimed that he had a “great” first term.

“Nothing will stop me from keeping my word to you, the people. We will make America safe, strong, prosperous, powerful and free again.

“And I’m asking every citizen all across our land to join me in this noble and righteous endeavor. That’s what it is. It’s time to put the divisions of the past four years behind us. It’s time to unite.”

Trump’s address saw the attendance of family members, allies, and close advisers, including tech billionaire Elon Musk.

“We have a new star. A star is born,” he said, referring to Musk, who endorsed Trump and is expected to play a role in his administration.

Separately, his running mate JD Vance thanked Trump for the trust he placed in him.

“I think that we just witnessed the greatest political comeback in the history of the United States of America,” Vance said in a short address to supporters.

Read also:

Budapest’s real estate might be on the verge of a renaissance – Here’s what’s driving it!

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

The emergence of new housing real estates now goes beyond the tight clustering of simple residential buildings. New projects aim not only to develop real estate, but to create complex neighbourhoods offering parks, services and green spaces. Such developments make residential environments more attractive, providing a range of community and leisure facilities in addition to homes.

Behind the evolution of urban living environments is a shift in consumer expectations. According to Pénzcentrum.hu, buyers are placing increasing emphasis not only on the quality of housing, but also on the infrastructure of the area and the accessibility of services. The noise and stresses of metropolitan life are also increasing the demand for green spaces and tranquil surroundings. Recognising this, new residential areas are seeking to provide not only luxury but also comfortable living conditions.

Developers are placing increasing emphasis on community and green solutions in the design of modern neighbourhoods. By integrating public parks, community spaces and services, they are creating liveable urban environments where residents can enjoy an active community life. In addition, developments are built with sustainability in mind, using energy-efficient and environmentally friendly solutions to help reduce the city’s environmental impact.

Hungarian real estate market Budapest Hungary
Source: Pixabay

The real estate situation in Budapest

Although Budapest has a growing housing stock, this is not enough to meet the ever-increasing demand. Obstacles to the expansion of the capital’s housing market include a lack of suitable building plots and regulatory difficulties. The expansion of agglomeration areas is also not a sustainable solution and developers need to consider alternative directions.

As building opportunities have become more limited, the importance of brownfield sites has increased, as they offer an excellent opportunity for the development of new neighbourhoods. The redevelopment of industrial, often derelict sites can create modern residential areas with a range of services. One of the advantages of such projects is that the VAT on new housing can be reclaimed, making it more affordable to buy.

In Budapest, examples of brownfield developments include the New Danube Embankment in Újbuda and the Millennium Quarter in Ferencváros. The new districts not only offer modern housing and office space, but also enrich the cityscape with green areas and community spaces. Infrastructure designed in line with the 15-minute city model will allow easy access to all important places for residents, thus contributing to an improved quality of urban life.

Developments now include community spaces that allow residents to organise not only neighbourhoods but also communities of friends. In new buildings, shared spaces such as gyms, community lounges and roof terraces help build connections between people, strengthening community life in the city.

Ultimately, Budapest’s new housing developments are more than just buildings, they are crafting a new kind of city life. Focusing on sustainability, shared spaces and accessible services, these neighbourhoods are reshaping urban living to meet modern lifestyles.

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Featured image: depositphotos.com

Varga: Compromise on VAT in the digital age among successes of Hungarian EU presidency

Daily News Hungary Logo Új

A compromise reached on a package of legislation on VAT in the digital age is one of the “great successes” of Hungary’s presidency of the Council of the European Union, Finance Minister Mihály Varga said ahead of an Ecofin meeting in Brussels on Tuesday.

Varga said the compromise had been reached after two years of negotiations, adding that ministers were expected to approve the package at the meeting on Tuesday.

He added that the ministers will also discuss data provision and development regarding European statistics and parts of the Draghi report.

EU finance ministers will discuss the economic situation with their counterparts from the European Free Trade Association (EFTA) countries ahead of the Ecofin meeting.

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Tax changes in 2025 in Hungary: Airbnb tax skyrockets, currency conversion fee remains, plane tickets may be cheaper

Surprisingly, Hungarians are not only going to the West to work

Austria guest workers hungarians

With Austria, Slovakia, and Romania drawing Hungarians across borders to work, recent statistics from the Hungarian Central Statistical Office (KSH) shed light on this growing trend of cross-border employment. Austria remains the most popular destination, with Slovakia and Romania emerging as surprising, though significant, alternatives for Hungarian workers.

Austria is the most popular foreign country for Hungarians to work

Hungarians in Austria
Source: depositphotos.com

In 2022, the KSH reported that 122,000 Hungarian residents commuted to work abroad, making up nearly 3% of Hungary’s total workforce, Portfolio reports. Around 80% of these cross-border commuters headed to Austria, especially from western border towns, motivated by Austria’s higher wages despite the country’s higher cost of living. As of April 2024, Austria employs 118,000 Hungarians, marking a 4.4% increase in one year, according to G7. This influx makes Hungarians the second-largest foreign workforce in Austria, only outnumbered by Germans. Projections suggest that Hungarians may soon become the largest expatriate group in Austria, driven by wage differences and economic opportunities.

Interestingly, almost half of Hungarian employees in Austria commute rather than relocate, given Austria’s higher living costs. Commuting allows them to take advantage of Austria’s higher median wages—around EUR 2,000 monthly for Hungarians—without paying Austria’s elevated rent and consumer prices. Despite earning 27% less than the average Austrian, Hungarian wages in Austria are significantly higher than comparable wages at home, making commuting an attractive option. Yet, Hungarians in Austria often hold physical, non-office roles, with limited options for remote work, and the Hungarian government has yet to support remote work arrangements through a framework agreement, adding a layer of complexity to these cross-border jobs.

More and more people commute to Slovakia and Romania too

Brasov, Romania DRacula's castle Hungarian Days festival Wizz Air
Brassó (Brasov) in Transylvania, Romania. Source: depositphotos.com

Surprisingly, Hungary’s eastern and northern border regions are also seeing substantial commuting patterns to Slovakia and Romania. According to KSH’s findings, many residents from Borsod-Abaúj-Zemplén County travel to Košice in Slovakia, while others from southeastern Hajdú-Bihar County commute to Oradea in Romania. Sándor Baja, CEO of Randstad Hungary, noted during the Budapest Economic Forum that a trip to Biharkeresztes would reveal “dozens of buses transporting Hungarian workers to Oradea.” This observation hints at a shifting perception of Romania’s wage competitiveness.

Recent insights challenge Hungary’s traditional view of Romania as a lower-wage country. As Árpád Boros, Staufen’s country manager for Hungary and Romania, explained, Romania’s wages have largely caught up with those in Hungary. In certain regions, wages in Romania even exceed those in Hungary, positioning Romania as an increasingly viable destination for Hungarian workers seeking better pay.

Higher wages key motivator for Hungarians

Higher wages remain a key motivator for these commuters, yet the decision is not purely financial. Austria’s living costs, 1.6 times those of Hungary’s according to Eurostat, mean that cost-adjusted wage advantages diminish, as we wrote earlier. When factoring in the cost of living, the Austrian median gross wage only represents a 1.6 times increase over Hungarian wages, rather than the 2.5 times difference indicated by unadjusted figures. Despite hopes that Hungary’s rising wages might curb cross-border commuting, the widening wage gap is pushing more Hungarians to seek better-paying opportunities abroad each year.

Whether in Austria’s bustling sectors or Romania and Slovakia’s border industries, the appeal of cross-border employment persists, fueled by wage disparities and limited remote work options at home. As neighbouring countries attract growing numbers of Hungarian workers, these cross-border patterns underscore the ongoing economic challenges faced by Hungary’s workforce.

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Varga discusses Europe’s competitiveness challenges in Brussels

minister varga

The finance ministry said that Europe’s role in the global economy has declined significantly in recent decades, and the continent is losing ground to its global competitors. Finance Minister Mihály Varga said this at a meeting of Macroeconomic Dialogue at the Political Level (MEDPOL) in Brussels on Monday.

The ministry cited Varga as saying at the meeting he chaired representing the Hungarian presidency of the Council of the European Union that Europe’s increasingly serious challenges call for urgent and effective solutions, underscoring the need to support families with children and households.

He said there was an ongoing debate about which areas the policy measures addressing the EU’s competitiveness challenges should focus on.

He said the Hungarian presidency believed the key areas were real wage growth, productivity, boosting investments, and taking advantage of the opportunities presented by the digital revolution. Varga said the aging European population, declining birth rates, and the difficulties burdening the welfare system were all problems that could be addressed by supporting families with children and households.

The minister said Hungary was setting a good example in this area, pointing out that it has introduced Europe’s broadest family support system and planned to expand it next year.

Varga said participants at the MEDPOL meeting had discussed the various options. European Central Bank President Christine Lagarde and Ecofin Director-General Thomas Westphal also attended the meeting.

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How Viktor Orbán’s son-in-law capitalised on tax breaks to dominate Hungary’s rich list!

Surprising new trends that will revive the Hungarian housing market in 2025

Budapest Housing

The Hungarian housing market is finally on track for a strong comeback next year after a couple of weak years. Key drivers include real wage growth, a lower base rate from the central bank and improving credit market conditions. Add to this some pre-election government measures and the stage seems set for a rebound.

The government has been rolling out various initiatives aimed at different parts of the housing market, but there is a catch: many of these focus on boosting demand rather than expanding supply. According to G7, there has been a lot of focus on the extension of the 5% tax on new buildings and the overhaul of the rental rules. Meanwhile, newer measures, like the Airbnb restrictions and youth-focused housing programs, are still lacking in detail.

Budapest Housing
Source: Pixabay

Rent control and housing benefits

The rental market, which usually plays second fiddle to homeownership policies, is now getting more attention. One pivotal move could be extending housing cafeteria benefits to include rent payments—something that could significantly shift renter support. Plus, discussions between the government and banks about capping housing loan interest rates are crucial, which will likely shape lending practices and impact housing demand.

With budget pressures looming large, the government seems keen to find low-cost solutions. Options such as the use of SZÉP cards and voluntary pension savings for housing fit the bill. On the other hand, any large-scale, ambitious improvements are likely to depend on the state of the public finances, which will influence when (and if) they’re announced.

Housing affordability & market trends

For the first time, affordable housing has become a talking point in government communications, which seems to be a major shift. Given the fluctuating house prices and stagnating real wages of recent decades, this acknowledgement feels long overdue. Statements from officials like Gergely Gulyás and Márton Nagy underline a real housing crisis, particularly in the capital and other big cities.

Post-pandemic, the housing market saw a dip, with sales picking up in 2023 but still trailing behind 2019 levels. House price indices are reflecting this pattern too: after a drop in 2022, prices crept back up in 2023 but are still hovering around the 2020-2021 real price levels. Rents are following a similar trajectory.

forint currency economy money
Photo: depositphotos.com

Future outlook

Looking ahead, price trends may hinge on how much of the income from government bonds trickle into the real estate market. Even a partial inflow could spark notable price jumps, especially in major cities and for new builds. Forecasts are calling for potential price increases of 10-20% next year, buoyed by more active investors and continued support from home-buying subsidies.

All signs point to a housing market that’s gearing up for a major shift, fueled by a mix of economic recovery, targeted government measures, and evolving market conditions. While affordability remains a challenge and budget constraints may limit ambitious policies, the next year is set to bring new opportunities, especially for those keeping a close eye on investment trends and policy changes. If the expected wave of investor interest and supportive measures gain traction, the market could see a strong rebound, with rising prices in key urban areas leading the charge.

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Sixth lowest monthly PMI in Hungary since 1995

Daily News Hungary Logo Új

The Hungarian Association of Logistics, Purchasing, and Inventory Management (Halpim) said on Monday that the seasonally adjusted PMI in Hungary (purchasing managers index) stood at 47.6 points in October, down from 49.4 points in September.

PMI in Hungary

Halpim said that the PMI was below the 50-point threshold, which signals expansion in the manufacturing sector.

Among the PMI sub-indices, the new orders index fell and was under the 50-point mark.

The production volume index declined but still indicated expansion.

The employment index rose but continued to show a contraction.

The delivery times index rose.

The gauge of purchased inventories slipped and was still under the 50-point mark.

PMI in Hungary comparison with older data:

  • The index of production volume fell this month, with a reading above 50 points indicating an expansion in production volume, the sixth lowest reading this month since 1995. The index for new orders fell, the third lowest monthly reading since 1995.
  • The delivery lead time index increased compared to September. Looking at the monthly values so far this month, this is the ninth lowest since 1995.
  • The Purchased Stocks index decreased, again below 50.0 points, showing a contraction. This month’s index is the eighth lowest since 1995.
  • The employment index increased and is also showing contraction this month. The index value is the twelfth lowest this month.

read also: 

Struggling German carmaking industry may ruin PM Orbán’s economic dreams and election chances, details HERE

After historic lows, Hungary’s forint faces possible further decline with today’s S&P credit rating, details HERE

How Viktor Orbán’s son-in-law capitalised on tax breaks to dominate Hungary’s rich list!

Ráhel Orbán and István Tiborcz Orbán's son-in-law

István Tiborcz, Orbán’s son-in-law, has seen his wealth soar thanks to tax breaks tied to the BDPST Group, which have dramatically sliced his tax obligations.

Following a significant law passed in 2017, the BDPST Group has enjoyed tax relief amounting to approximately 30 billion HUF (EUR 74,058,690.00) over the past five years, which has been transformative for Orbán’s son-in-law Tiborcz’s financial standing. After debuting on Hungary’s rich list in 2019, Orbán’s son-in-law has since tripled his net worth, reaching the 19th spot among Hungary’s billionaires in 2023, according to 24.hu.

Ráhel Orbán and István Tiborcz Orbán's son-in-law
Photo: Instagram / rahel_orban

BDPST Real Estate Distributor Ltd: A profitable core

At the centre of this wealth accumulation is BDPST Real Estate Distributor Ltd, the flagship company of the BDPST Group. Between 2019 and 2023, the company reported an impressive profit of HUF 48.4 billion. From this amount, Orbán’s son-in-law, Tiborcz and other owners collected HUF 5.5 billion (EUR 13,578,306.50) in dividends, while paying minimal or no corporate tax over the years. BDPST Ltd. employed tax incentives and legal frameworks to keep its tax bill strikingly low, a strategy also extended to its affiliated companies.

The real key to BDPST’s tax savings is a 2017 amendment allowing companies to double-count renovation expenses for historic buildings when calculating tax deductions. Thanks to this policy, introduced by the Orbán government, Tiborcz’s company acquired historic properties and funded their renovations with substantial loans, some sourced from the state-owned Hungarian Development Bank. These manoeuvres have kept BDPST’s tax obligations so low that it has effectively avoided corporate tax altogether.

Reaction from the TISZA Party

Péter Magyar, leader of the TISZA Party, has openly condemned this arrangement, accusing the Orbán government of creating what he describes as a “tax haven” for Tiborcz. He argues that Orbán’s government has effectively embedded loopholes in the law to benefit Tiborcz’s companies, further supporting his enterprises with state-backed loans. Magyar went so far as to liken their operation to “Al Capone in kindergarten,” suggesting this issue could prompt significant political shifts by 2026.

Péter Magyar in the European Parliament
Photo: FB/Magyar Péter

What happens to Orbán’s son-in-law’s wealth?

According to Szabad Európa, Ráhel Orbán and István Tiborcz married in 2013 on a grand estate in Fejér County, located in the picturesque Tükröspuszta, on the border of Bicske and Csabdi. Since then, the Tiborcz family has embarked on a property acquisition spree, buying multiple plots, including a forest and various fields. Recent contracts reveal that Tiborcz and his father, Dr Sándor Tiborcz, acquired a total of 19.6 hectares of land—both farmland and forest—in August and September 2024, valued at HUF 75 million (EUR 185,167.28). With this latest acquisition, the Tiborcz family now owns at least 340 hectares in and around their Tükröspuszta estate.

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Tax changes in 2025 in Hungary: Airbnb tax skyrockets, currency conversion fee remains, plane tickets may be cheaper

Hungarian forint media wage shockingly low

On 29 October at night, the government submitted their bill about the 2025 tax changes. In a nutshell, the Orbán administration plans to increase the Airbnb tax in Budapest (and only in Budapest) fivefold. They would also abolish the departure tax, which may result in cheaper plane tickets in Hungary. Since the Orbán cabinet enjoys a supermajority in the Hungarian parliament, we can be sure the bill would be accepted.

Tax on Airbnb skyrockets, and it may break the sector in Budapest

We wrote HERE that Terézváros, Budapest’s 6th district, conducted a referendum about the ban of Airbnb in the district and, with a thin majority, the opposers won in September. This week, the district’s local council accepted the ruling about the ban from 1 January 2026.

According to Telex, the government plans to increase the tax after Airbnb-type rooms for rent from HUF 38,400 (EUR 94) to HUF 150,000 (EUR 367). That significant – and probably unbearable – rise applies only to Budapest. Based on the KSH, Hungary’s statistical office, tourists spent almost 10 million guest nights in apartments for short-term rental.

Top Hungary news airbnb tax in hungary
Tourist in Budapest. Will she find an Airbnb here after the tax increase and Airbnb ban? Photo: depositphotos.com

Departure tax to be phased out, conversion tax remains

In October, the government introduced a new tax type, the so-called currency conversion tax, which is 0.45% after each transaction. That means if you buy or sell one euro for forint, 4 forint goes to the state budget, and 396 remains in your purse. Although the Orbán cabinet talked about a temporary measure concerning the new tax, Telex says the new bill would keep the tax at the current level even in 2025.

Hungarian forint
Less money than expected after currency exchanges. Photo: depositphotos.com

Meanwhile, the government announced it will phase out the so-called departure tax, a fee paid by the airlines as an “excess profit” tax. In reality, of course, the passengers pay for it. The departure fee collection will finish next January. Read more about that decision HERE.

Flight delays and longer wait times at Budapest Airport due to IT outage
Will we fly cheaper? Photo: FB/Budapest Airport

The retail tax will remain in 2025. Furthermore, next year, online platforms will have to pay the retail tax instead of the trader after all products purchased online. Products sold abroad and fuel will remain exempted.

Read also:

  • Addressing Budapest’s housing crisis: Proposal to restrict home purchases by non-EU nationals – read more HERE
  • Banks in Hungary reject government accusations about their excess profit – details in THIS article

Featured image: depositphotos.com

Real estate: Rising Russian and Vietnamese investment fuels Hungary’s property boom

Hungarian real estate market Budapest Hungary

In 2023, Hungary’s real estate market experienced impressive growth across all sectors. Sales in second-hand housing surged by over 30%, while new-build homes saw even more substantial growth, with an increase of over 50%.

Budapest emerged as a particularly hot spot, recording a 55% rise in sales in the first half of the year, followed by a 38% increase in the latter half. According to Index, experts anticipate this momentum to continue, especially in the capital. Although younger buyers (under 35) are moderately represented in the overall market, they are making a significant impact in smaller towns and villages, where housing costs are lower.

Rural regions have become increasingly attractive to younger buyers, thanks to family home-building discounts and other support programmes aimed at promoting homeownership in these areas. Looking ahead, additional economic incentives could enhance young people’s presence in the market, potentially reshaping demographic trends in Hungarian real estate.

Real estate Budapest Hungary
Source: Pixabay

Foreign investors in the market

Despite a decline in foreign property purchases in 2022, international interest remains robust, particularly around Lake Balaton and in Budapest’s central districts. German, Russian, Chinese, Vietnamese, and Israeli buyers are leading the way, drawn to these areas for second homes or holiday properties. In Budapest’s inner city, foreign buyers accounted for 25% of all transactions, while the Lake Balaton area also saw sustained demand from international purchasers.

Foreign buyers represented approximately 9% of all real estate transactions in Budapest, contributing 12% to the overall market value. According to Economx.hu, demand is especially high in central neighbourhoods of Pest, where foreign transactions make up 22% of sales volume and 28% of market value. Around Lake Balaton, in the scenic Somogy and Zala counties, about 15% of properties were sold to foreign buyers, predominantly from Germany, Austria, and Belgium, seeking holiday homes.

Tihany Real Estate
Source: Pixabay

Which nation leads in investment?

German buyers remain the largest group among international investors, purchasing around 1,500 real estate properties in 2023, although their numbers have slightly decreased since last year. They continue to focus on areas near Lake Balaton, with a strong presence in Somogy and Zala counties. Meanwhile, East Asian buyers, primarily Chinese and Vietnamese, are increasingly attracted to Budapest, particularly in higher-value inner-city areas, with younger buyers showing notable interest in the market.

Notably, younger buyers are particularly drawn to Budapest not only for its upscale neighbourhoods but also for the city’s promising long-term investment potential. This dual appeal has significantly boosted demand for high-end real estate in the capital, as young professionals seek both quality living spaces and reliable investment opportunities.

Foreign interest, though shifting slightly, remains strong in iconic areas such as Budapest’s inner city and Lake Balaton. As economic policies adapt and market demand continues to evolve, Hungary’s real estate landscape is likely to see even more diverse participation, making it an intriguing market for buyers and investors alike.

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New Chamber of Industry and Commerce head promises new support schemes for SME sector

New Chamber of Industry and Commerce head Elek Nagy

Elek Nagy, who was elected the new head of the Hungarian Chamber of Industry and Commerce (MKIK) on Wednesday, has announced a programme to support businesses’ competitiveness, MKIK said on Thursday.

The chamber will continue its cooperation with the government and make professional recommendations, MKIK said.

Nagy said he believed in cooperation, collective thinking and knowledge-based decisions, in addition to preserving results achieved so far.

MKIK’s board acknowledged the work of outgoing president László Parragh, who has held the post for 24 years.

New Chamber of Industry and Commerce head Elek Nagy
Photo: FB/Magyar Mérnöki Kamara

Business chamber launches programme to boost digitalisation among SMEs

The Hungarian Chamber of Commerce and Industry (MKIK) on Thursday announced the launch of a HUF 2bn, European Union-funded programme to support digitalisation at SMEs without a homepage or a presence on social media.

The programme targets over 10,000 SMEs of which 5,000 could draft digital development plans, the chamber said. A similar programme launched during the last EU funding cycle supported digital developments at over 25,000 businesses, it added.

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Struggling German carmaking industry may ruin PM Orbán’s economic dreams and election chances – UPDATED

Orbán German carmaking industry

The German carmaking industry is struggling, and that has a devastating effect on Hungary’s economy because, despite all of Orbán’s “freedom fights” against the EU and his developing ties with China and other Eastern powers, the Hungarian economy’s key partners are Western states, especially Germany and the German car manufacturing industry.

German carmaking industry struggling

According to G7, Hungary’s GDP contracted by 0.7% in Q3 of 2024, meaning our country is in a technical recession. The Hungarian economy-focused media outlet found the reason in Hungary’s agriculture, industry and construction sectors. Their contribution to the GDP fall reached 2% this year.

According to Péter Virovácz, a senior analyst of ING Bank, the Hungarian agriculture sector’s 2023 base was very high, and the weather was catastrophic this year. The Hungarian industry and carmaking sector struggle because of Germany.

audi CUPRA Terramar győr German carmaking industry
The new Audi CUPRA Terramar in Győr. Photo: Facebook/Joó István

0.5% GDP growth for 2024 could be already a miracle

Mr Virovácz augurs a 1% GDP growth for 2024 in Hungary. Bence Stubnya, a journalist for G7, said the GDP increase will not reach 0.5% this year. The government said this year’s GDP growth would be 4%. Now, their prognosis is about 1.5%.

ING Bank‘s 2025 prognosis concerning Hungary’s GDP growth fell below 3%, while the Orbán cabinet talks about 3-6%. On 18 October, PM Orbán said everybody would be surprised when they see the Q1 GDP increase next year.

Without significant economic improvement, PM Orbán will be in trouble in the 2026 elections because Péter Magyar and his Tisza Party outpaced Fidesz in recent polls. Orbán’s Fidesz has been leading the polls since 2006 and has been governing the country since 2010.

PM Viktor Orbán pro-government media 
Photo: MTI

UPDATE: Eurozone develops, Hungary falls behind

The euro area economy expanded by 0.4% quarter-on-quarter in July-September, Eurostat revealed Wednesday. Third-quarter growth was at 0.9% on a yearly basis, slightly above market expectations of 0.8%, the statistical authority announced. Economic growth projections for the eurozone also underestimated quarterly growth, which was 0.2%. On the EU side, the GDP growth rate was 0.3% for the third quarter on a quarterly basis and 0.9% for a yearly basis, the Turkish Anadolu news agency wrote.

Among member states, Ireland recorded the highest increase with 2% compared to the previous quarter, followed by Lithuania’s 1.1% and Spain’s 0.8%. Declines were recorded in

Hungary (minus 0.7%), Latvia (minus 0.4%) and Sweden (minus 0.1%).

Number of jobseekers continues to fall

The number of jobseekers in Hungary stood at 226,219 in October, 2,000 fewer than in the previous month, the state secretary for employment policy said on Thursday, citing data from the National Employment Service (NFSZ).

The October figure was the lowest for the month in more than three decades, Sándor Czomba said.

The number of people seeking work for longer than a year has fallen 4pc over a year, while around 20,000 Hungarians have found work with the support of programmes for under- and over-30s, he added.

The government aims to boost the employment rate to 85pc and tap the 300,000-strong labour market reserve, he said.

Read also:

  • National economy minister: Hungary’s growth hindered by external factors, especially automotive decline
  • No stopping: Hungarian forint hits another record low after weak GDP report

Featured image: despositphotos.com