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Hungary becomes EU’s most expensive state to run all the while underfunding healthcare

orbán and rogán hungary most expensive state to run

In 2023, Hungary officially became the European Union’s most expensive state to run, with the government spending 8.1% of its GDP on public administration, security, defence, and local municipalities. This expenditure—outlined in a recent budget report submitted to Parliament—places Hungary ahead of all other EU member states, where the average is 5.9%. While Hungary’s lavish spending on state operations stands out, its healthcare system remains severely underfunded, drawing sharp criticism.

Hungary spends too little on healthcare, education

The financial report revealed that, while the state spent HUF 6,119 billion (EUR 15.23 billion) on its operations, healthcare received a mere 4.7% of GDP, placing Hungary at the bottom of the EU rankings, Népszava reports. In comparison, the average EU country allocates 7.7% of GDP to healthcare, significantly more than Hungary. Despite an increase in nominal terms to HUF 3,554 billion (EUR 8.85 billion), high inflation caused the real value of healthcare spending to drop by 7.8%, a reality that healthcare professionals and the public are increasingly feeling.

on-call system healthcare
Photo: depositphotos.com

Education spending faced similar struggles. Though the government allocated HUF 2,901 billion (EUR 7.22 billion), a 12% increase in nominal terms, the nation’s inflation rate of 17.6% meant that in real terms, spending actually decreased by 5.6%. This leaves Hungary trailing behind the EU average, with the country spending 3.9% of its GDP on education compared to the EU average of 4.9%.

At the same time, state propaganda received more

Despite cutbacks across essential public services, there was one notable exception: government propaganda. The Prime Minister’s Cabinet Office, led by Antal Rogán, received HUF 18.1 billion (EUR 45 million) more than originally budgeted for government communication tasks, alongside HUF 35.5 billion (EUR 88.4 million) extra for events.

Meanwhile, the country’s defence and law enforcement sectors also felt the pinch. The 3.2% budget cut, when adjusted for inflation, amounted to a real-term reduction of 21%. This drastic decrease in funding left security forces under strain, with rising debts accumulating towards the end of the year, necessitating emergency financial interventions.

orbán and rogán
PM Orbán (left) and Antal Rogán (right). Photo: Facebook/Orbán Viktor

Hungary’s high costs extend beyond public administration. The state also stands out for its generous spending on business subsidies and cultural activities, which includes sports and religious support. These areas have long been a priority for the Orbán government, often at the expense of healthcare and education.

In conclusion, the data highlights the stark imbalance in Hungary’s budget priorities, as the country allocates disproportionately high sums to operating the state while underfunding vital sectors like healthcare and education. This spending pattern raises significant concerns, especially given the country’s ongoing economic challenges and rising inflation.

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Budapest mayor Karácsony advocates for cities’ direct access to EU funding at Eurocities meeting

Budapest mayor Gergely Karácsony after the municipal assembly session EU funding

There is a consensus among European city leaders that cities should have more direct access to EU funding, Budapest Mayor Gergely Karácsony said in a video on Facebook on Tuesday, on the sidelines of a meeting of the European Parliament and Eurocities, an urban lobby organisation.

Karácsony advocates for direct access to EU funding

Mayors and MEPs have discussed ways to allow cities greater direct access to EU funding, and “guarantees that governments, first and foremost that of Hungary but of other countries too, are trying to dismantle to strip cities of their funding.”

Despite the differences between their cities, the mayors agreed that “partnership should be taken seriously at the distribution of EU funding, and cities, councillors and local communities should be heard,” Karácsony said.

In the case of Budapest, such partnership “is a matter of life and death,” he said.

Benedek Jávor, Budapest’s representative in Brussels, said the European Commission was drafting the next seven-year budget, adding that it was of paramount importance that cities’ interests were integrated into the European financial system.

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Hungarian national bank’s latest decision strengthens the forint

forint bank card coin money bond finance interest rate freeze Hungarian government orbán

The Monetary Council of the National Bank of Hungary (NBH) decided to leave the central bank base unchanged at 6.50pc at a monthly policy meeting on Tuesday.

At the previous policy meeting, in September, the Council had cut the rate by 25bp. The Council also left the O/N deposit rate at 5.50pc and the O/N collateralised loan rate at 7.50pc. The rates mark the ends of the central bank’s symmetric interest rate corridor. In a statement released after the meeting, the Council said the domestic inflation outlook was consistent with the projection in the NBH’s latest quarterly Inflation Report, published in September, but pointed to an increase in upside risks to inflation on the back of deteriorating international investor sentiment and volatile commodity prices.

“Re-intensifying geopolitical tensions, volatile financial market developments and the risks to the outlook for inflation warrant a pause in cutting interest rates,” the policy makers said. “The external interest rate environment may ease more slowly than previously expected, while the expected interest rate paths of the world’s leading central banks are still surrounded by uncertainty,” they added. Looking ahead, the Council said a “careful and patient approach” to monetary policy was still warranted and decisions on the base rate would be taken in a “cautious and data-driven manner”.

Forint strengthens after the decision

The decision of the Monetary Council did not come as a surprise: after the words of Barnabás Virág, Vice President in charge of Monetary Policy, it was certain that interest rates would be kept on hold, Portfolio writes. Nevertheless, the forint reacted to the announcement by strengthening to around 400/EUR.

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Hungarian wages continue to climb, real earnings outpace inflation

forint hungarian central bank minimum wage loans

The average gross wage in Hungary rose 13.1pc year-on-year to HUF 628,800 (EUR 1,568) in August, according to data released by the Central Statistics Office (KSH) on Tuesday.

Net wages climbed at the same pace to HUF 418,100. Real wages rose 9.4pc, calculating with August CPI of 3.4pc. The gross median wage increased by 15.6pc to HUF 520,000, KSH reported. Hungary’s statutory monthly minimum wage was raised by 15pc to HUF 266,800 for unskilled labourers and by 10pc to HUF 326,000 for skilled workers from December 1.

Excluding Hungarians working full-time in fostered work programmes — who earned an average gross of HUF 132,500 in August — the average gross monthly wage was HUF 639,200. The average gross wage in the business sector, which includes state-owned companies, rose 12.5pc to HUF 633,100. The average gross wage in the public sector climbed 14.4pc to HUF 609,200.

In the non-profit sector, the average gross wage increased 15.8pc to HUF 641,600. For the period January-August, gross wages averaged HUF 634,300 and net wages came to HUF 421,800, both up 13.9pc from the same period a year earlier.

Commenting on the fresh data, Sándor Czomba, the state secretary for employment policy, said real wages had climbed continuously for a year, while employment rose. Since 2010, the average paycheque has tripled, while 1 million more people are working, he added. He noted that boosting the purchasing power of working Hungarians was a pillar of the government’s recently unveiled economic policy action plan.

Related measures include the launch of a credit scheme for young blue-collar workers, the doubling of tax preferences for families with children, and a three-year wage agreement between employers and unions. The government targets a monthly minimum wage of EUR 1,000 by 2028, while the average wage climbs to HUF 1 million, he added. Czomba said economic growth was a condition for accelerated wage growth.

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Featured image: depositphotos.com

House frozen in time: Inside Pest County’s abandoned modern villa

forgotten modern villa in Pest County

An abandoned modern villa in Pest County recently captured the Hungarian urbex community’s attention. Many are curious to find out what forced this unique architectural gem’s owners to leave such an astonishing home to decay for eternity. The books and kitchen supplies left behind suggest that the family had to leave in a rush. Curious explorers ventured inside and found some papers that provided a possible background story of the luxurious villa covered in dust.

Abandoned villa in Pest County

As Pénzcentrum writes, urban exploration, or “urbex”, has grown into a popular movement centred on discovering and documenting forgotten, abandoned spaces. From decaying industrial complexes to forgotten homes, the allure of exploring these neglected sites lies in their eerie beauty and untold stories. In Pest County, one such discovery has captivated the Hungarian urbex community—a modern villa, abandoned yet half-furnished, standing as a ghostly reminder of a different time. With its striking architecture and luxurious touches still intact, this villa in Pest County once embodied wealth and success, but now it quietly decays, its grandeur slowly fading.

What happened?

This derelict villa in Pest County tells a broader story of Hungary’s housing crisis, a reflection of the economic hardships faced by many homeowners. According to documents found inside the villa, the owners took out a substantial loan of HUF 160 million (EUR 399,476) in 2011. Of course, we cannot be a hundred percent sure about what happened, but the economic context and the papers strongly suggest that the family could not keep up with paying back the loan.

Once a symbol of affluence, the villa now lies empty, much like other luxury estates that have met similar fates in recent years. As urban explorers wander its halls, the villa’s past echoes through its empty rooms—a forgotten dream left behind, caught in the quiet aftermath of financial ruin.

Urbex’s growing popularity

Urban exploration is not merely about visiting abandoned places; it is a form of cultural documentation that reflects societal changes and historical narratives. Each site holds layers of meaning—stories of families who lived there, economic shifts that led to abandonment, and even architectural styles that tell us about past trends. The villa in Pest County serves as a microcosm of these larger themes, inviting explorers to ponder not just what was lost but also what can be learned from these spaces. The shared interest in photography, history and adventure (of course) brings together these communities, thus it is also an opportunity to meet like-minded people.

Unique places left behind

In another post of spiral urbex, they share another example of neglect within urban landscapes, fire trucks lie abandoned in the yard of a fire station. Plans were once set in motion for their recovery; they were intended to be restored and displayed in a museum dedicated to fire service history. However, due to persistent funding shortages, these plans never materialised, leaving these vehicles exposed and vulnerable for years.

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Hungarian government announces no-fee guarantee for new investment loans for SMEs

tech artificial intelligence business invoice AI SMEs

Guarantee fees will be waived on some loans for local SMEs for the first year of the credit term, Richárd Szabados, the state secretary for SMEs, and István Attila Szabó, the head of guarantor Garantiqa, said in a statement issued by the National Economy Ministry on Friday.

The measure will apply to Széchenyi Card credit and other subsidised loans for investments. Garantiqa’s surety stock stands at HUF 2,580 billion (EUR 6.45 billion) on HUF 3,330 billion (EUR 8.32 billion) of credit. It has guarantees on 73,000 loans taken out by 54,000 businesses. One in two SME loans is guaranteed by Garantiqa.

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Featured image: depositphotos.com

Orbán government preparing to take out another loan from China?

Orbán government preparing to take out another Chinese loan

National Economy Minister Márton Nagy met with China Development Bank President Tan Jiong on Friday, his ministry said.

The sides discussed joint projects Hungary and China are undertaking in the areas of infrastructure, energy, digitalisation and e-mobility. They also exchanged views on deepening the sovereign financial cooperation in the Chinese-Hungarian Cooperation Framework.

Nagy said ties between Hungary and China, including in the areas of financing cooperation, had “never been better”. Hungary strives to establish economic ties based on mutual respect that benefit all sides, and China and Chinese financial institutions are very important partners in that endeavour, he added.

Orbán government preparing to take out another Chinese loan
Illustration. Deputy FM Levente Magyar at the China International Fair. Photo: MTI

He acknowledged China’s strengthening role in global financing and the country’s increasing weight in global investments. Hungary has become the number one destination for Chinese investments in Central and Eastern Europe, and the country aims to enhance its role as a bridge for capital, know-how and technology from the East and the West, he added.

He said Hungary was counting on Chinese financial institutions in implementing infrastructure projects in the framework of the government’s economic development strategy, including the V0 railway bypass around Budapest, a rapid rail line connecting Liszt Ferenc International Airport with the centre of the capital, and upgrades of infrastructure at crossings along the border with Serbia. He said the upgrade of the Budapest-Belgrade rail line, another project backed by Chinese financing, was expected to finish in the summer of 2025.

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Hungarian branch of Revolut opening postponed, MNB worried

revolut fintech company hungarian branch

Hungarian clients of fintech company Revolut “deserve a domestic bank”, the National Bank of Hungary (NBH) said on Thursday.

The central bank and financial market regulator pointed to foot-dragging on the launch of a local Revolut branch, but said a branch still wouldn’t be covered by the National Deposit Insurance Fund (OBA).

“A reassuring solution would be for the company to operate with a Hungarian subsidiary…sufficiently capitalised and with a deposit guarantee from OBA,” it said.

The NBH noted that around 1.5m Hungarians had accounts with Revolut — registered as a bank in Lithuania — and that number was set to reach 2m next year.

REvolut in Hungary
Photo: FB/Revolut

 

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  • Good news for customers: Revolut elevates its presence in Hungary

Featured image: depositphotos.com

Orbán government may launch unique programme to boost Hungarian property market

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

The Orbán government aims to allow Hungarians a one-off opportunity to use savings in voluntary pension funds for home purchase or renovation, or to repay home loans, in 2025, Zsolt Kovács, a National Economy Ministry commissioner, said on public television on Wednesday.

The government measure, which is in the public consultation phase, would allow Hungarians to apply as much as their entire voluntary pension fund savings for home purchase or renovation for themselves or their family members, Kovács said on news channel M1.

He noted that there were about 1m voluntary pension fund members at present. Some of those members could have as little as a few hundred thousand forints on their accounts, while the balances of others could be in the tens of millions of forints, he added.

Sovereignty Protection Research Institute Orbán government
Photo: FB/Orbán

More than HUF 2,000bn in savings are in voluntary pension funds, and if “a few tenths” of those savings are mobilised by the measure, it could be considered a “real success”, Kovács said.

Digital Hungary app popular

Government investments with a combined value of HUF 136bn have been completed over the past two years, government spokesperson Eszter Vitályos said at a regular press briefing on Wednesday. The 31 projects included HUF 1bn of kindergarten and nursery renovations, HUF 1.3bn of transport developments and road reconstruction projects, and HUF 4.2bn of urban upgrades, Vitályos said.

Investments of around HUF 6bn were completed in the area of economic development, and major projects were finished at education, culture, sport, healthcare and social institutions, she added. She noted that the Digital Hungary mobile application had been downloaded more than 200,000 times, and the national healthcare mobile app could now be used to make appointments at more than 80 healthcare institutions.

Digital Citizenship Hungary Orbán government
Photo: PrtScr/Youtube

Read also:

  • Hungary’s property market on track for 30% sales increase in 2024 – read more HERE
  • Budapest Mayor Karácsony urges Orbán to address housing crisis as rent prices soar – details in THIS article

Featured image: depositphotos.com

Minimalist Wallets And The Traveler: A Perfect Match

shuffle Wallets

Professions and events have their unique identity and representation. The life of a traveller is an adventurous one and so there is a specific lifestyle and need that fit the profession.

Minimalist wallets are versatile and able to adapt to any profession just like the Shuffle minimalist wallet and so is an ideal match for travellers.

In this article, the benefits of travelling with a minimalist wallet and how to safely keep one’s travel documents will be analyzed. 

Advantages of Travelling with A Minimalist Wallet

shuffle

Sufficient space

Minimalist wallets are designed to be sleek and compact which saves space in one’s luggage when travelling and a comfortable companion. Its compact design makes it easy to find essentials like cards, cash, and passports on the go. It is very convenient and portable for travelling from one place to another.

Security features

With the sleek nature of the minimalist wallet, it makes it hard to overload which helps in reducing misplacement or loss of essentials. Also, minimalist wallets have security features like RFID-blocking technology, Bluetooth tracking, Biometric verification and even voice activation which safeguards discreet information from unauthorised scans and possible theft.

Improved organization

It represents simplicity and quality over quantity. With its compact design, it helps to eradicate clutters which promotes organization. There are designated slots for every essential (cards and cash) and this helps one easily navigate through the wallet content. It also helps one prioritize and take only the necessary items when travelling.

Mindful spending

A minimalist wallet is built with just a little space for cash and limited but good enough space for cards (IDs, credit cards, key cards, membership cards etc) so it helps curb excess spending. 

It makes one mindful of expenses and it is a little step towards cutting down on material possessions while encouraging the minimalist lifestyle.  

Versatility

Some minimalist wallets are versatile as they are built with multi-functional abilities in which they can perform various tasks or serve different purposes. They come with detachable phone holders or stands, card holders, wristlets or even paper clips. This means that it can be altered to blend in with whatever scenario one is in while travelling.

Safekeeping Essential Travel Document 

shuffle

Minimalist wallet

Passports, ID cards, and credit cards can be kept in the minimalist wallet. With the integrated security features, essentials are protected from authorised scanning, being misplaced or stolen. It also prevents identity theft and can be tucked away from prying eyes because of its sleek and compact design.

Digital copies 

There is no guarantee that no mishap will happen so have digital backups on phone or iCloud storage of important documents like passports, medical records, travel itineraries and so on. If anything happens to the physical copies, and the document is needed for some important purposes, there is the chance to make printouts of the needed documents for use.

Extra copies

Make extra photocopies of all essential travel documents. This stands as a backup just in case the originals get stolen, lost or destroyed. They can be digitized and shared with family and friends or shared with a companion if not alone for the trip.

Emergency contact

Have an emergency point of contact in case of any problems encountered regarding documents. Put down the emergency contact details, and even that of the local embassy into the original documents and copies. Separating the documents into different bags could also be useful so if a bag gets missing, there will always be backup in the other bags. 

Document organizer

Make use of a document organizer with available pockets for plane tickets, passports, boarding passes and any other essential document so as not to be disorganized and end up mixing up and losing a document. 

Ensure it is of good quality to avoid wear and tear on the documents while on the move.

Accessibility

To aid smooth accessibility, arrange documents based on importance, frequent usage Make use of a secured, portable bag like a cross-body bag for when a document is needed for a day’s run for easy accessibility. This reduces the possibility of misplacing, losing, or mishandling the documents. Money belts and even neck pouches can be used to place documents closer as they can be worn under one’s outfit.

Plastic bags or pouches

Making use of plastic ziplock pouches and bags ensures the protection of documents against unexpected rainfall or even spillage from drinks or food. They come in different sizes and can come in handy when storing different sizes of documents.  

Conclusion 

Minimalist wallets are a perfect match for the adventurous life of a traveller. It is easy to use, safe, durable and functional. 

Will it be more favourable to be a pensioner in Romania than in Hungary? Here’s what the expert says

retirement age pension hungary pensioners

Pensioners in Romania now benefit from a German-style points system. Romania’s reforms, which account for both inflation and wages, mean that Romanian pensioners now receive higher pensions than their Hungarian counterparts. Hungary’s reluctance to reform has placed its retired citizens at a disadvantage.

More significant pension rise in Romania

As Szeretlek Magyarország writes, Romania has introduced a German-style pension points system, leading to more substantial pension increases than in Hungary, where the government has been slow to reform. Romanian pensions are now linked not only to inflation but also to wage levels. Over recent years, pensions in Romania have risen by nearly 40%, while in Hungary, they have barely increased by 10%. For the first time, Romanian pensioners are receiving higher pensions than their Hungarian counterparts, a clear indicator of Romania’s effective pension reforms. According to pension expert András Farkas, without changes, the Hungarian system could leave its pensioners further disadvantaged.

pensioners
Photo: pexels

Romania takes the lead

Once comparing itself to Austria, Hungary now finds itself looking towards Romania in discussions on pensions. While both countries submitted Recovery and Resilience Plans (RRF) for EU funding post-Covid, Hungary has yet to commit to the pension reforms due by 31 March next year. Romania, by contrast, enacted a law in 2023 to recalculate pensions from 1 September 2024, impacting 3.8 million pensioners. This recalculation, part of wider pension reforms, has resulted in average increases of 40%, with some Romanian pensioners seeing rises as high as 80%. Unlike Hungary, Romanian pensions will increase in line with both inflation and gross wage growth, giving Romanian pensioners a clear advantage.

Why is Hungary reluctant to change?

Hungary’s inaction on pension reform is partly linked to the Recovery and Resilience Fund (RRF) payments being withheld by the European Commission. One of the 27 commitments required for these funds was pension reform, for which an OECD expert study was conducted. However, the Hungarian government has not made the study public, insisting that the current pension system is adequate. The Ministry of Finance claims that pensioners’ purchasing power is protected and the 13th-month pension is secure, rejecting the need for reforms. As a result, Hungary risks losing EUR 6 billion in non-repayable aid.

Despite this, the Hungarian government had committed to all the milestones in its own RRF plan, which included pension reform. Experts argue that reform is crucial, pointing to Romania’s successful implementation, which has greatly improved pensioners’ living standards. By ignoring these reforms, Hungary risks further impoverishment of its pensioners and missing out on substantial EU funds that could improve their situation.

Potential changes

The expert points out that compared to Romania’s progressive pension reforms, Hungary’s potential changes, as proposed by the OECD, would be far less substantial and fail to modernise the system. Romania has adopted a German-inspired model with incentives for longer work and significant pension increases, while Hungary’s suggested reforms, such as raising the retirement age and recalibrating pension rates, would not address long-term challenges for future pensioners. Despite Hungary having a more favourable worker-to-pensioner ratio, careful consideration is needed to avoid costly missteps, such as revising the “Women’s 40” scheme and the 13th-month pension.

retirement age pension hungary pensioners
Photo: depositphotos.com

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Featured image: depositphotos.com

Incredible fine imposed for calling PM Orbán and his cabinet traitors

Incredible fine PM Orbán traitor

Speaker of Parliament László Kövér has fined Democratic Coalition head Ferenc Gyurcsány over 14 million forints (EUR 34,900), the party said on Saturday.

Last week, Gyurcsány told parliament that “Hungary today has a traitor government and prime minister”. After Kövér reprimanded him, Gyurcsány said “the House Speaker is behaving like the worst [Communist] party secretary”, and the Speaker withdrew his right to speak further, the party said.

Incredible fine PM Orbán traitor
László Kövér. Photo: MTI

Gyurcsány also said that Kövér had been abusing his power by restricting lawmakers’ freedom of speech.

Gyurcsány said he had expressed his opinion “very calmly”. “According to Kövér, that costs 14 million.”

DK is planning to go “as far as Strasbourg”, Gyurcsány added.

Incredible fine PM Orbán traitor
PM Orbán speaking in the Hungarian National Assembly. Photo: MTI

Read also:

  • Hungarian PM Orbán blackmailed by Putin? – read more HERE
  • Counter-protester interrupts start of Viktor Orbán’s press conference in Strasbourg – details and video in THIS article

Here’s what to expect from Budapest’s real estate market in 2025

Budapest real estate housing crisis in Budapest's real estate market

Hungary’s real estate market is poised for significant growth. This surge is anticipated to be driven by a tremendous influx of HUF billions from government bonds and pension savings, predominantly impacting properties in Budapest and major towns.

Real estate prices to face a sharp rise in 2025

As Telex reports, Hungary’s real estate market is set to experience a sharp rise in house prices, with an expected increase of 10-15% in 2024, according to an analysis by Ingatlan.com. This surge, driven by government bonds and pension savings potentially adding over HUF 1,000 billion (approximately EUR 2.5 million) to the market, will mainly impact properties in Budapest and major cities. Although Hungarian real estate saw significant depreciation in 2023 and early 2024, the forecasted price rise would represent a strong recovery, especially with inflation projected to remain low next year.

real estate market, Budapest
Source: depositphotos.com

Never-ending price hike?

Hungary’s real estate market continues to see notable price increases, with house prices rising by 6.5% in August and 6.7% in September compared to last year, according to Ingatlan.com’s house price index. The rise, however, has been uneven across regions. Budapest experienced a significant 9.1% increase, while the northern Great Plain, including the industrial hub Debrecen, saw an 8% rise. In contrast, northern Hungary recorded only a 1.8% increase, highlighting regional disparities in the real estate market. In Budapest, the average price per square metre reached HUF 1.07 million, with the 5th district being the most expensive at HUF 1.73 million, while the lowest-priced areas include the 20th district and Salgótarján.

Government bonds and pension savings

Looking ahead, the market is expected to accelerate further as an additional HUF 1,000 billion (approximately EUR 2.5 million) could enter the housing market by 2025, driven by pension savings and government bonds. This potential windfall, equivalent to a significant portion of the annual market turnover, will likely focus on properties in Budapest and larger cities, boosting demand and further driving up real estate prices. With the Hungarian state set to pay out substantial sums to government bondholders in the coming years, many investors plan to reinvest their returns into the property market, potentially fuelling further growth in house prices.

Hungary’s real estate market could see further growth following a recent government amendment allowing savings from voluntary pension funds to be used for housing purchases. While details are yet to be clarified, this policy may drive up house prices. A government policy paper also highlights the challenges young people face in acquiring homes, suggesting future measures to boost house-buying and construction. However, potential regulations like stricter Airbnb rules or rent caps could temper price rises driven by investors. According to Ingatlan.com, at least 145,000 sales are expected in 2025, with house prices forecasted to increase by over 10-15% next year.

Budapest rent prices property prices exceeded property in hungary
Photo: depositphotos.com

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Hungarian government supports graduates living abroad by redeeming their student loans

student loans hungarians abroad

The government will offer to refinance the student loans of Hungarians abroad, the National Economy Ministry said on Friday.

With the measure, the government aims to support the return of young Hungarians living abroad, the ministry said. Draft regulations on the measure will be posted for the public on Friday, it added.

According to the draft, young Hungarians studying abroad for their diploma who return to Hungary to work could opt to refinance their foreign student loans, up to HUF 10m, with credit from state-owned student loan provider Diákhitel.

Diakhitel credit for tuition is interest-free, while free-purpose Diákhitel loans have a rate of 7.99pc at present. Young Hungarians who avail of the opportunity would be eligible for the same preferences enjoyed by other Diákhitel borrowers, including loan discharge and suspension of repayment for families with children, and tax-free repayment support from employers.

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Featured image: depositphotos.com

National economy minister: Hungarian government targets rapid wage convergence

forint money currency Hungarian wages minimum wage

The government targets a rapid wage convergence, paired with GDP growth of 3-6pc, from next year, National Economy Minister Márton Nagy said at an awards presentation on Friday.

Nagy said this year’s GDP growth had failed to meet expectations mainly because of the downturn of the German economy — which hit the automotive industry hard — and domestic consumption developments. He said that third-quarter GDP growth was “minimal” and put fourth-quarter growth at 1-2pc. He augured a sharp rise in GDP growth from the first quarter of 2025, putting Hungary in the “3-6pc category”.

national economy minister
The national economy minister, Márton Nagy. Photo: MTI/Soós Lajos

The government targets a minimum wage of EUR 1,000/month and an average gross wage of HUF 1m/month by 2028, he said.

He said the government supported an agreement between employers and unions that would raise the minimum wage to 50pc of the average wage by 2027. That would require the minimum wage to rise from HUF 266,800/month at present to HUF 374,800 by January 1, 2027, and to HUF 419,815 a year later, he added.

At the same time, the average wage could rise from HUF 651,147/month at present to HUF 878,549 by 2027 and to over HUF 970,000 by 2028, he said.

Nagy said wage convergence could be supported by the launch of a credit scheme for young blue-collar workers, doubled family tax preferences and low inflation. He added that the government aimed to boost employment by tapping labour market reserves, raising the employment rate among 20- to 64-year-olds from 81.4pc to 85pc by 2030.

EUR/HUF exchange rate at the time of editing of the article: 400.84

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Featured image: depositphotos.com

Cerbona completes EUR 2.5 million capacity expansion

cerbona investment székesfehérvár

Hungarian-owned Cerbona, which makes musli, cereal and granola bars, has completed a more than HUF 1 billion (EUR 2.5 million) expansion at its base in Székesfehervár (W Hungary), CEO Tamás Mészáros said on Thursday.

Cerbona’s huge expansion

cerbona investment székesfehérvár
Photo: Facebook/Cerbona

The new production line, the fourth at the base, will double annual granola bar production to 4,000 tonnes or more than 150 million bars, Mészáros said. The additional capacity will allow Cerbona to expand its export market range to Western Europe, he added.

Cerbona owner Attila Pókecz noted that the company had earlier acquired the “Boci” chocolate brand from Nestlé, which would be a “new challenge” but add value to the portfolio in the long term. Cerbona had a net revenue of HUF 7.1 billion (EUR 17.7 million) in 2023, public records show.

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Latest inflation data out: Hungarian inflation back on target, property prices keep increasing

budapest property real estate housing residential area university apartment hotel inflation

Hungary’s annualised consumer price index reached 3.0pc in September, falling from 3.4pc in the previous month, according to data released by the Central Statistics Office (KSH) on Thursday.

Inflation in Hungary decreases

The KSH data show food prices rose 3.7pc in September. The price of flour jumped 32.9pc, milk prices rose 13.8pc and the price of eating out increased 7.6pc, but noodle prices fell 5.8pc, egg prices dropped 3.5pc and the price of poultry edged 2.4pc lower.

Household energy prices fell 5.0pc. Gas prices were 9.4pc lower and electricity prices declined 1.3pc.

Consumer durable prices edged down 0.2pc.

Motor fuel prices fell 9.5pc.

Prices of spirits and tobacco products increased 3.9pc and clothing prices rose 3.3pc. Service prices increased 8.4pc.

Core inflation, which excludes volatile fuel and food prices, was 4.8pc.

The CPI calculated with a basket of goods and services used by pensioners was 3.2pc.

In a month-on-month comparison, consumer prices edged down 0.1pc as motor fuel prices dropped 3.7pc.

Minister’s comments

Commenting on the fresh data, National Economy Minister Márton Nagy pointed to the success of government measures to bring high inflation, a consequence of the war and sanctions, down to a “persistently low” level.

The government is keeping some of those measures in place, such as an online price comparison platform featuring products stocked at the biggest supermarket chains in the country, he added.

Persistently low inflation translates as predictability and strengthens consumer confidence, boosting consumption and supporting economic growth, he said.

Home prices rise 6.7pc in September – ingatlan.com

Home prices in Hungary rose 6.7pc year-on-year in September, listings site ingatlan.com said on Thursday.

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

Home prices in the capital climbed 9.1pc. Price growth continued to accelerate, ingatlan.com said.

Prices of homes in Budapest averaged HUF 1,070,000/sqm (EUR 2,673) at the start of October, but were as high as HUF 1,730,000/sqm (EUR 4,322) in the central District V.

In Debrecen, Hungary’s second-biggest city, home prices averaged HUF 839,000/sqm (EUR 2,096). Homes were the cheapest in Salgotarjan (NE Hungary) at HUF 282,000/sqm (EUR 705).

Next year, ingatlan.com augurs a 10-15pc increase in home prices.

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Featured image: depositphotos.com

Revolut’s Hungarian expansion: Hiring in progress for local branch

revolut fintech company hungarian branch

Revolut, one of the world’s fastest-growing fintech companies, is taking concrete steps towards establishing a branch in Hungary. With over 1.5 million users already in the country, the company is now actively seeking professionals to build its local workforce, signalling a strong commitment to expanding its presence in the Hungarian market.

The expansion is official

revolut fintech company hungarian branch
Photo: depositphotos.com

For some time, Revolut has been delivering its services to Hungarian users from abroad. However, that is about to change as the company is now in the process of setting up a local office. The news was initially hinted at by Antoine Le Nel, Revolut’s Growth and Marketing Director, back in August 2023, and the company’s plans have now progressed further. According to a report by Revb.hu, the fintech company is currently recruiting staff for key roles in its future Hungarian branch. Positions like Legal Counsel and Regulatory Compliance Manager are being advertised on LinkedIn, and the company is on the lookout for skilled experts with significant experience in these fields.

Balázs Györffy, Revolut’s Manager of Expansion, also confirmed these developments on social media, stating that the company is working at full speed to establish its branch in Hungary. This move is part of the company’s broader global expansion, which includes efforts to enter other key markets, such as India.

Why a branch, not a subsidiary?

Revolut has clarified that they are opening a branch in Hungary, not a subsidiary. This strategic choice means that the company will not apply for a Hungarian banking license. Instead, the services provided to Hungarian customers will continue to operate under Revolut’s Lithuanian banking license. As a result, customer deposits will still be insured through Lithuania’s deposit protection scheme.

That said, opening a local branch will bring specific advantages for Hungarian users. For instance, Revolut plans to offer Hungarian IBAN numbers, simplifying salary transfers and local transactions. This could also enhance access to immediate domestic transfers, something currently limited by the international nature of Revolut’s operations. Additionally, the company will be providing Hungarian-speaking customer service, replacing the existing international support team.

Navigating regulatory challenges

revolut card payment
Photo: depositphotos.com

In the past, the Hungarian National Bank had encouraged Revolut to establish a subsidiary, which would have allowed the company to join Hungary’s National Deposit Insurance Fund. However, the fintech company chose not to pursue this option, citing it as a strategic decision. Tamás Léder, Revolut’s Hungarian country manager, explained that while the company decided against becoming a subsidiary, they are fully committed to growing their operations in the country.

The company has been handling the Hungarian government’s evolving tax and fee structure, including the recent introduction of transaction taxes on currency exchanges. Since October 2024, conversions have been subject to a higher levy. Despite these regulatory changes, Revolut has continued to absorb these costs rather than passing them onto customers, though this may not be sustainable in the long term.

What does this mean for customers?

The establishment of a local branch is a significant step forward for Revolut’s users in Hungary. In addition to Hungarian IBAN numbers, customers will benefit from faster and more efficient transactions, especially when dealing with local banks. This will particularly help the many Hungarians who already use Revolut to receive their salaries. The current process, which involves transferring funds to a Lithuanian account, can result in delays and additional fees. Hungarian IBAN numbers will solve these issues, making Revolut a more viable option as a primary bank account for many users.

Furthermore, the new branch will provide local customer support, improving the user experience and offering more direct solutions for handling complaints and queries. This level of localised service is expected to increase the company’s popularity and user base in Hungary, which it aims to grow to 2 million by 2025.

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