real estate

Buying a flat in Budapest has never been so easy

apartment in Budapest

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

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

Average prices for panel apartments

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

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

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

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

Buying and selling flats to become easier

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

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

Panel apartments in Budapest

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

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

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Average prices on Lake Balaton property market exceeded those in Budapest

Lake Balaton, Holiday, camping

This year, the amount spent on purchasing real estate on the Lake Balaton property market has exceeded the average in the capital, according to Duna House, but prices per square metre are still below those in Budapest.

Across the whole market around Lake Balaton, buyers spent an average of HUF 64.3 million (EUR 162,900) on property, HUF 60.9 million (EUR 154,200) on the South shore and HUF 67.7 million (EUR 171,000) on the North shore, more than double the amount spent in 2018 altogether. The availability of second-hand properties on the north and south coasts is almost equally distributed, 24.hu reports.

„During the pandemic, more people acquired property on Lake Balaton than usual, and now, taking advantage of the high price level and increasing buyer activity, many of them are trying to make a profit and are putting their holiday homes, family houses and apartments up for sale,” Károly Benedikt, head of PR and analysis at Duna House, said in a statement.

“It’s best to buy (property) when everyone is selling, and it’s worth starting the search while there’s still a wide range to choose from. Experts expect that due to the current high price level, the Balaton real estate market will see prices stagnate, or even slightly increase at a lower intensity than the national average, for the rest of the year, contrary to the general trend in the country,” Benedikt added.

Similar housing supply on the Nort and South coasts

tihany balaton property market
View from Tihany, photo: Pixabay

An analysis of the latest supply data shows that the choice of available second-hand properties is almost equally distributed on both coasts of Lake Balaton. Of the properties with direct coastal access, 52% are located on the south coast and 48% on the north coast.

Based on data from the beginning of June, there is a 17% difference between the prices per square metre on the north and south shores, with currently advertised second-hand properties on the north shore at an average price of HUF 767,000 (EUR 1940) per square metre, while those on the south shore are currently advertised for HUF 653,000 (EUR 1650) per square metre on the property market.

Balaton property market prices catch up with the capital

budapest_property_market
Photo: www.facebook.com/spiceofeurope/

According to this year’s sales data, while buying a home in Budapest costs HUF 60.4 million (EUR 153,000), those buying a house or apartment around Lake Balaton, including both second-hand and new properties, spent an average of HUF 64.3 million (EUR 162,900).

This means that although the price per square metre is still lagging behind, the Balaton property market is 6% above the average for the capital city in terms of the amount spent on property purchases.

Looking at the sales data by county, it can be seen that Veszprém is the second most expensive county in terms of price per square metre after Hajdú-Bihar, where the average price per square metre is HUF 585,000 (EUR 1482) with an average price of property of HUF 50.7 million (EUR 128,500). In Zala and Somogy, which also have coastal areas, the average price per square metre is HUF 390-434,000 (EUR 990-1100). However, the range of properties on Balaton is much wider than this, from those in habitable condition to luxury properties worth over a billion HUF.

Read also:

  • Renting an apartment in Budapest is almost a luxury: prices approach those in Madrid – Read here
  • The biggest increase in real estate prices happened in these Hungarian towns – Read here

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

castle in Hungary, Szombathely

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

The Hungarian castle market

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

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

castle in Hungary, Szombathely
Source: ingatlan.com
castle near Szombathely for sale
Source: ingatlan.com

Prices vary majorly for a castle in Hungary

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

cheapest Hungarian castle
Source: ingatlan.com
cheapest Hungarian castle
Source: ingatlan.com

Diverse prices, diverse conditions

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

Something old, something new

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

castle in Recsk
Source: ingatlan.com

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

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Mini-Dubai in Budapest: Works to start, giga real estate project launched

rákosrendező railway station intergovernmental agreement Mini-Dubai

In the area earmarked for the so-called Mini-Dubai in Rákosrendező, Budapest, preparations for the project will begin with the demolition of buildings, tracks, tree felling and the removal of illegally dumped waste.

Mini-Dubai project underway in Budapest’s Rákosrendező

rákosrendező railway station intergovernmental agreement Mini-Dubai
The Rákosrendező railway station. Source: Wikimedia Commons/12akd

On Friday, MÁV, the owner of the land, which is still state-owned but is to be handed over to Arab investors for the controversial mini-Dubaj project, announced a public tender for the preparation of the Rákosrendező area, hvg.hu reports.

The HUF 14 billion contract is for land reclamation with the most essential works, in particular the clearance of 130 hectares. According to the call for tenders, the project is to prepare the planned development of the Rákosrendező railway station, a new EUR 5 billion urban area, which is a priority investment.

The successful tenderer will have to cut down trees and clear the area of vegetation. In addition, the redundant buildings on the site must be demolished and the waste—some of which contains asbestos and is therefore hazardous—must be removed. They don’t have much time, as the government intends to hand over the site to the developer this autumn, mfor.hu writes.

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Luxury castles in Hungary: extravagant buildings for the richest of the country

For those to whom money is no obstacle, the Hungarian property market offers some splendid luxury castles and mansions for sale. From historical gems to fully renovated properties worth billions of forints, here are the most striking trends in the Hungarian premium property market.

Pénzcentrum reviewed the luxury castles and mansions on offer in the country and found that there is a sizeable market for extravagant buildings, often valued in the billions. Most ads, they say, are for properties to be renovated, but often refurbished estates are also for sale.

According to László Balogh, chief economist at ingatlan.com, the market for luxury castles and mansions in Hungary is relatively small, with around 150-200 properties listed for sale each year. Most of the castles (roughly 70-90 per year) are advertised in towns, with only a few (around 20) in Budapest.

Likewise, Duna House Prime’s head of PR and analysis, Károly Benedikt, said that castles and mansions account for 2-2.5 percent of the company’s portfolio. The market, therefore, is modest, but the prices are not so much.

Luxury castle Hotel Sasvár
One luxurious mansion in the country is Hotel Sasvár.
Photo: facebook.com/kastelyhotelsasvar

You have to dig deep into your pockets to buy a luxury castle

“In the first 5 months of 2024, 62 mansions were advertised for sale on ingatlan.com for an average of HUF 472 million (EUR 1,194,220),” said László Balogh, and there are considerable differences between regions of the country in terms of prices. The most expensive properties are located in the capital, where the average price of a luxury mansion is HUF 1.6 billion (EUR 4 million). The median price in county towns is only a third of that, at HUF 568 million (EUR 1.4 million). In smaller towns and villages, average prices range from HUF 330-331 million (EUR 835,000).

The “cheapest” mansion in Duna House’s offer is in Komárom-Esztergom County, with a price of HUF 265 million (EUR 670,000). In contrast, the highest price is for a renovated villa in Budapest, built in the early 1990s, valued at HUF 1.3 billion (EUR 3.3 million).

Investments of this value, Károly Benedikt points out, usually involve a lengthier decision-making process. “Most of the properties in our database worth over a billion or more have been looking for a suitable buyer for years. Of course, the time it takes to sell such properties is also affected by the current economic situation, as when there is less activity from clients looking for investment, there are also fewer serious buyers for the really high-value properties,” he said.

László Balogh shared a similar view, saying that luxury mansions worth billions of forints can remain on the market for 1-2 years in many cases at their agency, too.

Hungarian castles that you should visit in the winter - Nádasdy Castle
Another iconic luxury castle of the country, albeit not for sale: the Nádasdy-castle. / Photo: FB Nádasdladány, Nádasdy-kastély – hivatalos

As Pénzcentrum points out, in addition to the purchase price, these properties often require extensive renovation, too, which must be taken into account. Although Balogh pointed out that the proportion of renovated luxury castles in good condition is now 53 percent and only 22 percent of the advertisements posted are for mansions in need of renovation.

However, Benedikt says that there are currently listed mansions in need of renovation in several areas of the country, which could be ideal for tourism purposes after modernisation. At the same time, “castles and mansions also have considerable prestige value, with wealthier buyers, mostly foreign, often choosing them for private use, for a quiet, secluded, special country estate.”

The record holders: these are the most expensive luxury castles in the country

Pénzcentrum also compiled a list of the most expensive renovated mansions in Hungary. The absolute winner is a castle in Szombathely, which has been on the market since 2023 for HUF 11.76 billion (EUR 29.7 million). The property is a fully renovated, 3,600-square-metre, 41-room building with antique furnishings, awaiting its new owner on a 65,000-square-metre plot, with Japanese, French, and English gardens.

Moreover, according to its advertisement, a bed made for the wedding night of the last emperor of the Ming dynasty can be found in one of the bedrooms, and Count István Széchenyi’s bookcase is also located among the walls of the luxury castle.

In second place is a 3,133-square-metre castle in Acsa, built in 1910 and available for HUF 5 billion (EUR 12.6 million). 13 bedrooms, 2 drawing-rooms, 7 bathrooms, and a wooded park await the new residents of this Versailles-style chateau.

Third in line is a property located in Budapest, which can be bought for “only” HUF 2.2 billion (EUR 5.56 million). However, you get not one, but two luxury villas for that price, as well as a garage and two outdoor pools.

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

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

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

Real estate trends

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

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

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

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

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

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

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

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

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Real estate market: Average price of newly built apartments in Budapest shockingly high

budapest property real estate housing residential area university apartment hotel inflation

Housing prices in Hungary rose by 4.5 percent compared to May last year, experts say. Szeged and Debrecen saw the biggest rises, while in the Budapest real estate market, a new-build apartment costs more than HUF one million (EUR 2520).

In May, house prices rose by more than 1 percent in a month, according to the housing price index of ingatlan.com, which predicts changes in the housing market analyses of the Central Statistical Office and the Hungarian National Bank to be published later. Throughout the month, the year-on-year increase in house prices was 4.5 percent, while in Budapest, prices rose by 5.8 percent in the past 12 months.

real estate market, Budapest
Source: depositphotos.com

According to the portal’s economic expert László Balogh, housing prices are on the rise mainly due to the high demand. However, the increase in prices is still moderate, only a third to a quarter of the pace of the housing price explosion seen between 2015 and 2022, according to the expert, Telex reports.

Real estate in Budapest is too costly for most Hungarians

In Budapest, the average price per square metre for second-hand properties is HUF 954 thousand (EUR 2412), while new properties are valued at HUF 1.28 million (EUR 3237). Most new-build flats are advertised for sale in the XIII district with an average price per square metre of HUF 1.35 million (EUR 3415), while in the XI and III districts, with the second and third largest supply of new flats, the average price per square metre is close to HUF 1.6 million (EUR 4046) and almost HUF 1.5 million (EUR 3790) respectively.

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

The property prices in Pest County, which covers the Budapest agglomeration, have stagnated over the past month, partly due to a slowdown in the pace of people moving out of the city and back to the capital, László Balogh commented on the latest data.

Szeged and Debrecen real estate market had the biggest rise in house prices

House prices continued to rise the most in the Southern and Northern Great Plain regions, including Szeged and Debrecen, where property prices increased by 7-8 percent in a year. Debrecen has the highest number of newly built homes for sale out of all the county seats, with prices approaching HUF 1.1 million (EUR 2780) per square metre, while second-hand properties are advertised at HUF 825,000 (EUR 2086).

Pécs and Nyíregyháza’s real estate market also has a significant offer of new homes, with average prices of HUF 972,000 (EUR 2460) in the former and HUF 655,000 (EUR 1660) in the latter. Second-hand homes in Pécs are on offer for 653,000 (EUR 1652), and in the capital of Szabolcs county for 572,000 (EUR 1447), which shows that there are big differences in the country in this respect.

Read also:

  • Housing market: Foreigners buy up the countryside, rents in Budapest cheapen – Read here
  • Russians and Chinese treat Hungary’s property market as an investment platform – Read here

Number of Russian buyers in the Hungarian real estate market increases

real estate market, Budapest

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

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

real estate market, Budapest
Source: depositphotos.com

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

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

Russian house buyers increased last year in the real estate market

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

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

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

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

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

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FIABCI: Hungarian real estate developments among world’s best – PHOTOS

MOL tower skyscraper Budapest fiabci

Three Hungarian real estate development projects won three gold and a silver medal in the FIABCI World Prix d’Excellence 2024 competition, Regő Lánszki, a state secretary at the construction and transport ministry, told a press conference on Wednesday.

FIABCI World Prix d’Excellence 2024

MOL tower skyscraper Budapest
Photo: facebook.com/mol.magyarorszag

Budapest’s Mol skyscraper headquarters garnered two golds, in the office and sustainable development categories, while the city’s new Museum of Ethnography received the gold in the public infrastructure category. The House of Hungarian Music received the silver medal in the same category.

Magyar Zene Háza House of Hungarian Music
The House of Hungarian Music. Photo: facebook.com/magyarzenehaza/

The prizes were handed over at a ceremony in Singapore on May 30.

László Gönczi, deputy head of the FIABCI World Prix d’Excellence committee and head of the organisation’s Hungarian chapter, said that with regard to Hungary’s recent success, FIABCI had decided to hold its September board meeting and conference in Budapest.

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Russians and Chinese treat Hungary’s property market as an investment platform

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

In the Hungarian property market, Chinese citizens and the Russians were the most active buyers in 2023. Following the residency bond programme introduced years ago, the Hungarian government is launching a new initiative aimed at citizens from non-EU and non-EEA countries. This programme grants a ten-year residence permit in exchange for real estate purchases or donations to trustee foundations.

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

According to Telex, the new Hungarian “guest investor” programme will come into effect on 1 July, following the local and European parliamentary elections. Using insights from analysts at Ingatlan.com and Duna House, the news portal examined the current state of property purchases by non-EU foreigners, particularly focusing on the trends among Chinese and Russian citizens, who are the predominant buyers.

Chinese and Russian citizens most active buyers

Every spring, the Prime Minister’s Office releases data on the number of non-EU foreigners who applied for permission to buy property in Hungary. According to these reports, the number of applications submitted by foreigners increased by 18% in 2023 compared to 2022.

Last year, 2981 non-EU citizens applied, marking the highest number since the coronavirus pandemic, although it remains below pre-pandemic levels (nearly 3300 in 2018 and over 3500 in 2019).

Regarding actual transactions, Chinese and Russian citizens were the most active buyers in 2023, with Chinese nationals purchasing 647 properties and Russians 223.

Decline in Russian buyers since 2022

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

Recent data shows a narrowing gap between the two nationalities: Chinese buyers purchased 17% fewer properties in 2023 compared to 2022, while Russian purchases increased by 16%. For Russians, properties in the 6th district were most popular, whereas Chinese buyers favoured the 13th and 10th districts, with about a quarter of their purchases occurring there.

According to Károly Benedikt, PR and analysis director at Duna House, the strong interest from Russian buyers seen in the two to three years before the invasion of Ukraine has significantly decreased, now representing only about 10% of that previous interest. This decline is partly due to sanctions and restrictions on Russians: only those with Hungarian residency permits or those who purchase through companies can buy properties, and government approval is still required.

Financially, the process is also complicated. Many long-time Russian residents in Hungary had their bank accounts closed at the war’s onset. Selling existing properties is also difficult, and it is nearly impossible for individual Russians to acquire Hungarian real estate. Those who manage to buy properties and have sufficient capital typically invest in luxury properties, often as part of broader international investments.

Data from Duna House indicates that the proportion of Chinese buyers purchasing homes has also decreased, with most now buying for investment purposes. They tend to purchase properties with one or two bedrooms, typically valued around 80–100 million forints. Foreign buyers usually rely on intermediaries, with Duna House employing several Russian and Chinese-speaking experts, and essential documents available in Russian and Chinese, alongside English and German.

Thousands of Russians scoping the market

Statistics shared by Ingatlan.com support the notion that Russian buyers face significant challenges. The real estate agency reported that Russian interest in their listings has surged in comparison to Chinese interest over the past two years. In 2022, 504 Chinese and 2242 Russians inquired about properties, rising to 1342 Chinese and 3842 Russians in 2023. For January 2024, Russian inquiries (851) far outnumbered Chinese ones (66).

In 2022, after the Chinese and Russians, the most active buyers were Israelis (182) and Ukrainians (166), followed by British (132) and Turkish (75) nationals. In 2023, the Prime Minister’s Office included Vietnamese in the statistics, who previously were under the “other” category. Consequently, last year, 340 Vietnamese, 154 Ukrainians, 108 Israelis, and 108 Turkish citizens bought property in Hungary.

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Featured image: depositphotos.com

Holiday home prices in Hungary decreased compared to last year

Lake Balaton, Holiday, camping

In 2023, the holiday areas were not as prominent as residential areas on the real estate market, but this year, they already seem more sought after. According to experts, the selection has become much larger compared to recent years, there are more than 11,000 residential properties for sale in the coastal parts of the holiday areas.

As Index reports, this represents an increase of 8 percent compared to 2023 already, 40 percent more than in May 2022.

“This might be due to lower prices, as there were 15 percent more inquiries for properties for sale in the settlements on the south shore this year than in the same period of 2023. Based on these, we expect a lively summer in the Balaton real estate market,” László Balogh, ingatlan.com’s leading economic expert, stated.

The selection of houses in holiday areas has increased

Lake Balaton, holiday, vineyard
Photo: depositphotos.com

The decrease in prices on the Southern shore of Lake Balaton is mainly due to the used apartments and houses for sale, because compared to them, the price of newly built properties is constantly rising, and it has already reached HUF 1,500,000 (EUR 3,887) per square meter on average. However, holiday homes that are not newly built have an average price of HUF 980,000 (EUR 2,539) per square meter, which is lower than at this time last year.

In the towns of Gárdony and Velence, which are located on the shore of another popular holiday destination, Lake Velence, the number of holiday homes available to purchase has increased by 9 percent. Compared to last May, owners are selling more houses for HUF 774,000 (EUR 2,005) per square meter. At the same time, in Velence, the number of residential properties for sale increased much more radically, and at the same time, the prices increased minimally, by only 3 percent to HUF 843,000 (EUR 2,187) in one year.

Lake Balaton, Holiday
Photo: depositphotos.com

“In the holiday areas next to our lakes, the supply at Lake Tisza jumped the most, by 40 percent on an annual basis. Currently, more than 600 residential properties are waiting to be purchased. At the same time, this is not visible in the square meter prices, as they increased by 6 percent to HUF 357,000 (EUR 926). Lake Tisza is one of our most dynamically developing holiday areas, where prices have been rising steadily for years. The supply may be a tenth as large as by Lake Balaton, but the properties for sale cost a third as much”, Balogh added.

What about other regions?

In Somogy County, which is popular among foreigners, more than 5,500 new and used residential properties were for sale in mid-May, which corresponds to an increase of 3 percent. Average square meter prices were HUF 1.02 million (EUR 3,112), which is 2 percent lower than a year earlier.

As we reported earlier, 2024 began with a property price rise in Budapest. In the first two months, the average square meter price of the brick apartments in the capital grew above HUF 1 million (EUR 2,516). The most expensive big city in the countryside was Debrecen, with an average rent of HUF 240,000 (EUR 618) a month. Here, prices have risen by an average of HUF 20,000 (EUR 52) per month, so much so that the mean rent in Debrecen is higher than in nine districts of Budapest.

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Housing market: Foreigners buy up the countryside, rents in Budapest cheapen

lake balaton property real estate places to live

In the fourth quarter of 2023, Zala County in Hungary had a substantial share of foreigners flock to its housing market. The county is not in a unique position: in three regions of the country, the proportion of non-Hungarians in the housing market has reached around 20 percent.

Foreigners are prominent in the housing market of these regions

The share of foreigners in the housing market in Zala County hit a record high in the fourth quarter of 2023, Telex.hu reports the analysis from the Hungarian National Bank (MNB). The latest data shows that 21.1 percent of home buyers in the county were foreigners at the end of last year.

Somogy County and the inner districts of Pest are also popular among foreigners. Still, interestingly, the share of foreign buyers in the housing market has declined somewhat in these two regions. Even so, almost 1 in every 5 buyers were non-locals in the case of both: 17.8 percent in the inner districts of Pest and 19.4 percent in Somogy County.

By comparison, Budapest’s proportion of foreign buyers was 7.6 percent, while in Hungary’s national housing market, it was only roughly 6 percent.

According to the Hungarian National Bank’s figures, housing prices in virtually all types of settlements saw a moderate increase at the beginning of 2024. However, the bank highlights that while foreign buyers are contributing to the rise in prices in the housing market of Hungary, they are still not the main culprit behind the hikes. Instead, speculative housing purchases are the ones that most affect prices.

Rent price increases slowed in Budapest but shot up in other cities

Rent prices have continued to rise at a higher pace than house prices, the MNB analysis highlights, but have slowed down compared to 2022.

In Budapest, for example, in the fourth quarter of 2022, the growth rate of rents was at 22.8 percent. In Q4 of 2023, on the other hand, the rate has gone down to 12.2 percent. Similarly, the national average growth in prices slowed from 21.4 percent to 12.6 percent in a year.

As for 2024, Index.hu looked at the real estate market in districts XIV and XVI of Budapest, illustrating the changes in the capital’s rental market at the beginning of the year through these two examples. It found that the hike in rental prices, which had been going on for several months, had come to a halt in the spring of 2024.

However, in terms of payments in April, the country and the capital followed different trends. While rents rose by an average of 0.8 percent nationwide compared to March, they fell by 0.5 percent in Budapest, according to the KSH and ingatlan.com rent index.

Moreover, there are also differences when it comes to Budapest: the inner districts of Pest saw a 1.8 percent monthly decrease, while rents of properties on the hills of Buda rose by 1.4 percent. The mean monthly rent in the capital was HUF 270,000 (EUR 695) in May. In the most expensive districts (II and V), the average monthly rent was HUF 380-400 thousand (EUR 979-1030). Within the capital, only in the XV, XX, and XXI districts did the average monthly rent remain under HUF 200 thousand (EUR 515).

“This year’s double-digit rise in earnings and incomes has now been priced into the market, but tenants are finding it difficult to afford significantly higher rents. This has led to a significant slowdown in rental growth nationally and a turnaround in rents in Budapest, where rents have been falling every month. Overall, April saw a correction of the brisk price increases seen in the first months of the year,” László Balogh, Chief Economist at ingatlan.com, commented on the April data.

“One reason why rents react so quickly to changes in market demand is that landlords can lose hundreds of thousands of euros if their rental property sits empty for weeks. This is now putting tenants at a disadvantage,” he added.

Debrecen took the title of the most expensive big city in the countryside, with average rents of HUF 240,000 (EUR 618) a month. Here, prices have risen by an average of HUF 20,000 (EUR 50) per month, so much so that the mean rent in Debrecen is higher than in nine districts of Budapest. The combined average rent in the county seats was HUF 150,000 (EUR 386) , illustrating how high averages in the city are.

Debrecen is followed by Székesfehérvár, Győr, and Veszprém, which have average monthly rents of HUF 180-190 thousand (EUR 464-490).

Read also:

Orbán government continues program reshaping Hungary’s property sector

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

The government is expanding VAT cuts until the end of 2026, the finance minister said on Facebook on Saturday.

VAT will remain 5 percent on newly built apartments smaller than 150sqm and houses smaller than 300sqm, in a move that will support families and the construction sector, Mihály Varga said.

Homes purchased after 2026 will be eligible for the same discount up until 2030 if their building permits had been obtained by 2026, he added. The step is expected to leave 200 billion forints (EUR 513.3m) with taxpayers, he said.

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  • Great news: New residential area announced in Budapest
  • Official: Law on Mini Dubai project in Budapest adopted

Hungarian real estate boom: Surge in prices, population explosion and hotspot shifts revealed!

Hungarian housing market - real estate

The median price per square metre for detached houses in the metropolitan agglomeration has surged by 10% over the past six months, as reported by Otthon Centrum to MTI on Monday. Let’s look at the latest figures of the Hungarian real estate scene.

This uptrend in Hungarian real estate prices is attributed to heightened demand, fueled by the enduring popularity of settlements surrounding Budapest. Gábor Soóki-Tóth, Head of Analysis at Otthon Centrum, highlighted a notable population surge of 70% of the settlements within Pest County. Over the past two decades, certain locales like Délegyháza, Telki and Pócsmegyer have witnessed a doubling in population, attributing this growth to migration surpluses, which significantly influence Hungarian real estate prices, according to Telex.

The average Hungarian real estate price per square metre for second-hand houses in the vicinity of Budapest currently stands at HUF 502,000 (EUR 1,287), reflecting a significant 10.2% increase compared to six months prior. At the district level, Vác emerges as the top performer with an average price of HUF 798,000 per square metre (EUR 2,046), closely followed by Budakeszi at HUF 745,000 (EUR 1,910) and Szentendre at HUF 651,000 (EUR 1,669).

Dunakeszi and Érd districts fall in the middle range with an average price of HUF 620,000 (EUR 1,589), while Pilisvörösvár and Gödöllő districts maintain an average price of HUF 600,000 (EUR 1,538). Notably, prices tend to decrease as the distance from Budapest increases, evidenced by the average price of HUF 291,000 (EUR 746) in the Cegléd district and HUF 255,000  (EUR 654) in the Nagykőrös district.

Blocks of flats in Budapest
Photo: BKK/FB

Hungarian real estate figures

After experiencing a sharp decline in 2023, the Hungarian real estate market within the metropolitan agglomeration is now showing signs of recovery in the current year. Particularly noteworthy is the surge in housing prices south of Budapest, displacing the northwest from its previous position atop the price hierarchy.

Last year, a nationwide decrease in purchasing propensity resulted in a notable dip in relocation to the metropolitan agglomeration, leading to an 18% reduction in sales compared to the preceding year. However, this year presents a different outlook, with Hungarian real estate market dynamics indicating a potential resurgence, as reported by HVG. Prices per square meter within the agglomeration have escalated by 8%, reaching HUF 640,000 (EUR 1,641), signalling a potential revitalisation of the real estate sector.

In the initial quarter of this year, the average property price within the agglomeration reached HUF 69.6 million (EUR 178,411), marking a notable 10% surge compared to the commencement of 2023. Károly Benedikt, head of PR and analysis at Duna House, noted a cessation in the significant migration wave during the Covid period, leading to a stabilisation in the areas surrounding the capital. However, this equilibrium doesn’t extend to prices, which have resumed their upward trajectory in response to heightened demand.

Formerly, the north-western sector, spanning from the Danube Bend to Piliscsaba, held the title for the most expensive area; however, the western sector, including Budakeszi, Budaörs, Törökbálint and adjacent settlements, has now claimed the top spot with an average price per square meter reaching HUF 690,000 (EUR 1,769).

Conversely, the southeastern area, encompassing locales between Maglód and Alsónémedi, boasts the lowest average price at HUF 508,000 (EUR 1,302). Meanwhile, the southern sector stretching from Érd to Délegyháza retains a comparatively modest average price per square meter of HUF 532,000 (EUR 1,364), representing a 10% increase over the year. According to Duna House’s data, one-third of all agglomeration properties sold last year were situated in the southern sector.

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  • Hungarian domestic tourism soars in March – HERE
  • Spar leaving Hungary? Here is the official reaction – HERE

Great news: New residential area announced in Budapest

budapest property real estate housing residential area university apartment hotel inflation

The construction of a new residential area in Budapest has been announced. A total of 665 apartments are planned to be built on the site of an abandoned woodlot in the Hungarian capital.

On the border of Szemeretelep and Miklóstelep, a new residential area is being built on a former woodlot in District XVIII of Budapest. The Alfa Group will build two- and three-storey terraced houses and condominiums in three phases, with a total of 665 apartments, Magyar Építők reports.

New residential area to be built in Budapest

Pünkösdfürdő Park budapest
Illustration: Pünkösdfürdő Park. Source: Facebook/Karácsony Gergely

The company has promised to build the new residential complex in harmony with the existing family houses, behind them, together with commercial, service and leisure green spaces. According to the developer, the area, which will be accessible from Krasznahorka Street, Szent László Street and, later, from Érsekújvár Street, will be divided into playgrounds, green areas and community gardens.

The new residential area will be accessible from a total of five directions, with most of the traffic on Soroksári Road. Thus, there will be no significant additional traffic on the existing streets with the surrounding detached houses.

Parking for 789 cars will be provided for the apartments, including 289 in underground garages under the buildings.

budapest property real estate housing (1)
Budapest, Hungary. Source: depositphotos.com

According to the company, the buildings will not form a large block, but will be arranged in an airy manner over an area of almost 100,000 square metres. Green spaces around and between the buildings will connect three large parks.

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From Budapest To Dubai: Evaluating Investment Prospects In Property Markets

dubai property

Investing in Dubai’s property market presents a compelling opportunity ripe with potential. Dubai offers unique advantages for investors seeking to diversify their portfolios and capitalize in their markets. Budapest, the vibrant capital of Hungary, is well-known for its modern development, making it an attractive destination for tourists and investors.

On the other hand, Dubai is well-known as a business hub, trade, and tourism. Dubai is renowned for its luxury lifestyle and tax-friendly environment. Investors can explore opportunities in property markets through the property portal Bayut which is the largest real estate portal in the UAE and offers various properties for sale and rent.  In the global real estate market, the Emirate’s strategic location at the crossroads of Europe, Asia, and Africa positions it as a key player, attracting real estate investors. Investors can leverage diverse opportunities from residential developments to commercial ventures, to achieve returns on investment and long-term growth. 

Unveiling Budapest’s Property Market Trends: A Comprehensive Analysis

Budapest, Hungary’s capital, is known as the most beautiful city in Europe. People from around the world come here for food, nightlife, the spas and the culture. The greener, quieter Buda offers unique cultural experiences and an easy-going way of life.

The climate in Budapest is mild and the temperature is rarely uncomfortable. The strategic location of Hungary in central Europe makes it accessible to a wide range of destinations.

Let’s discuss the most demanding properties in Budapest:

  1. Szervita Square
  2. Verecke Street
  3. Oktober 6. Street

1. Szervita Square

Szervita Square is in the heart of Budapest, also known for the city’s rich history and vibrant energy.  The total area of the building is 12,500 m. square. This iconic square serves as a focal point for locals and visitors. The building consists of 2 top floors with 20 incredible residences right in the heart of Budapest.

A list of amenities in Szervita Square is listed below:

  • Private car parking
  • Smart home technology
  • VIP lounge
  • 24/7 security
  • Private elevators
  • Residential rooftop
Apartment type Avg. area/sq. m. Avg. price/sq.m. (HUF) Total price (HUF)
2-BED 107 4,591,399 491,418,125

Note: this data is derived from Mathew and Daniel’s luxury apartments market guide. 

2. Verecke Street

A terraced property in the city’s heart with a few luxury apartments was built in 2021. Most advanced smart home solutions are installed on the property. With this feature, you can change temperature and lighting even remotely. The property has a 467 sq. m. area specified for gardens, so the property is extremely quiet. 

A list of amenities in Verecke Street is listed below:

  • American kitchen
  • Air conditioning property
  • Mortgage free
  • Electric shutters 
  • Heat pump heating
  • Floor heating
Apartment type Avg. area/sq. m. Avg. price/sq.m. (HUF) Total price (HUF)
2-BED 81 2,457,387 199,059,967

Note: this data is derived from Mathew and Daniel’s luxury apartments market guide.

3. Oktober 6. Street

The total area of the property is 108 m. square. The entire wall services of the property are equipped with fiberglass nets to avoid any cracks in the building. The entire wall services of the property is equipped with tapestry. 

A list of amenities in Oktober 6. Street is given below:

  • Circo heating 
  • High ceilings
  • Air conditioning
Apartment type Avg. area/sq. m. Avg. price/sq.m. (HUF) Total price (HUF)
2-BED 108 3,137,291 338,797,173

Note: this data is derived from Mathew and Daniel’s luxury apartments market guide.

Diving Into Dubai’s Property Market Trends: A Comprehensive Overview

Property prices in Dubai for luxury apartments and villas accounted for the record-breaking transactions in 2023. The Dubai real estate market maintains an impressive rate of growth. If we tap into the 2023 market report, this shows valuable insights into the property market trends of Dubai.

Let’s discuss the most demanding luxury properties in Dubai:

  • Dubai Marina
  • Business Bay
  • Downtown Dubai

1. Dubai Marina

Dubai Marina is one of the most sought-after neighborhoods in Dubai. This waterfront community is equipped with hotels, luxury apartments, restaurants, and entertainment facilities. Dubai Marina, seamlessly linked via multiple thoroughfares, offers unrivaled accessibility to prime destinations. Retail centers, medical facilities, and groceries are just a few steps from the property.

A list of amenities in the Dubai Marina community is listed below:

  • Shopping malls
  • Easy access to supermarkets 
  • Cycling tracks and gyms
  • Public transport facilities
  • Nearby schools and hospitals
Apartment type Avg. area/sq.ft. Avg. price (HUF)
1-BED 841 146,446,794
2-BED 1,369 238,201,421
3-BED 2,187 380,559,913

Note: This data is derived from the Bayut 2023 Dubai property sales market report.

  • According to the Bayut report, the average price/sq.ft. is HUF 174,066.

2. Business Bay

Business Bay is a mixed-use district in Dubai. The area of Business Bay is 46.9 million square feet. 22.1% is allocated for residential projects, 18.5% is allocated for commercial use, and 59.4% is allocated for mixed operations. This property is known for international and local businesses. 

A list of amenities in Business Bay is listed below:

  • Shopping malls
  • Restaurant and bars
  • Clinics and pharmacies
  • Public transport facilities
Apartment type Avg. area/sq.ft. Avg. price (HUF)
1-BED 780 143,923,794
2-BED 1,253 231,104,510
3-BED 1,818 335,286,865

Note: This data is derived from the Bayut 2023 Dubai property sales market report.

  • According to the Bayut report, the average price/sq.ft. is HUF 184,419.

3. Downtown Dubai

Downtown Dubai is a project of Emaar Properties located in the heart of the city. The Downtown area of Dubai is home to landmarks, shopping malls, and different attractions nearby. The property is equipped with high-rise buildings, penthouses, villas, and commercial, and residential properties. 

A list of amenities in Downtown Dubai is listed below:

  • Hotels     
  • Transportation and parking spaces
  • Schools and nearby healthcare
  • Supermarkets and shopping malls
Apartment type Avg. area/sq.ft. Avg. price (HUF)
1-BED 724 191,356,742
2-BED 1,327 350,653,716
3-BED 2,271 600,122,962

Note: This data is derived from the Bayut 2023 Dubai property sales market report

  • According to the Bayut report, the average price/sq.ft. is HUF 264,216.

Unlocking Opportunity: Why Foreign Investors Should Consider Dubai Properties

The market of Dubai properties attracts foreign investors with unparalleled opportunities. It offers a blend of luxury living, robust infrastructure, and high returns. Let’s explore the reasons why investors should consider Dubai Properties.

  • Competitive property prices
  • Higher rental yields
  • Investor-friendly tax system
  • Investor visa

Competitive Property Prices

Compared to other cosmopolitan hubs, Dubai offers competitive prices for foreign investors. These competitive prices in Dubai offer investors to gain more value for their property. Dubai offers business infrastructure and a state-of-the-art lifestyle. This is the most significant reason to buy luxury properties in Dubai. 

Higher Rental Yields

Foreigners investing in Dubai real estate can benefit from high returns on their investments. The villa properties in Dubai offer a higher ROI of 7.98%, while apartments in Dubai offer a higher ROI of 9.04%. (According to Bayut).

On the other hand, properties in Budapest yield an ROI of 4-5%. (According to the Wandering Investor).

Investor-Friendly Tax System

The most interesting benefit of investing in Dubai properties is no taxes on real estate. While most countries implement taxes on income and property. UAE is a tax-free country. Investors can consider that all the money they make in the UAE is 100% theirs. While buying property in the United Arab Emirates, you have to pay no annoying property tax. (According to Bayut).

On the other hand, the tax on the rental income in Budapest is 15%. There is also a capital gain tax of 15%, which decreases every year. (According to the Wandering Investor). 

Investor Visa

Real estate investors owning property worth equal to or more than HUF 200,606,800 at the time of purchase are eligible for a golden visa. This is a 10-year renewable residence permit. The husband or wife, children, and parents can be sponsored.

Documents required for the golden visa application are listed below:

  •  A passport
  • Availability of e-certificates
  • A personal photo
  • UAE ID
  • A copy of the current residence permit

Residency status: A resident foreign investor and visiting foreign investors 

Investor Resident Visa

The real estate investors owning the property with a purchase value equal to or more than HUF 75,117,413 at the time of purchase are eligible for a two-year residential permit. The husband, wife, and parents can be sponsored. 

Documents required for the investor residential visa are listed below:

  • A passport
  • Availability of e-certificates
  • A personal photo
  • Health insurance
  • UAE ID
  • A copy of the current residence
  • A copy of good conduct issued by the Dubai Land Department DLD

Residency status: A resident foreign investor and visiting foreign investors

Budapest Vs Dubai: In A Nutshell

Dubai emerges as a superior choice for several compelling reasons. Firstly the strategic location of Dubai serves as a hub for global business and tourism. Dubai offers a diverse pool of international investors and tenants, ensuring a steady demand for real estate properties. Secondly, Dubai offers an investor-friendly environment such as freehold areas like Arjan, Barsha Heights, Business Bay, and Cultural Village where foreigners can enjoy 100% ownership of the property with world-class amenities and an unparalleled skyline. 

On the other hand, Budapest offers European charm and cultural immersion. Budapest offers long-term stability and traditional investment landscape potential. Budapest embodies timeless elegance and cultural heritage.

Overall, Dubai’s dynamic economy, investor-friendly policies, strategic location, and commitment to innovation position it as a premier choice for real estate investment, offering superior prospects for investors seeking high returns, diversification, and growth opportunities compared to Budapest.

Frequently Asked Questions (FAQ’s)

Q: What are the key benefits for foreign investors investing in Dubai?

A: Real estate investors can have visa benefits such as a Golden visa in which the investor owns the property more than or equal to HUF 200,606,800  and an investor residence visa in which the investor owns the property more than or equal to HUF 75,117,413 eligible for these two types of visas. Moreover, Dubai offers a higher ROI of 7.98%, while apartments in Dubai offer a higher ROI of 9.04%. On the other hand, properties in Budapest yield an ROI of 4-5%.

Q: How is the real estate market in Budapest?

A: Budapest has the most expensive housing options, with an average offer price exceeding one million forints per square meter. Moreover, the average rental price of apartments totaled 4,591,399 forints per square meter for a 2-bed apartment in the country’s capital.

Q: Can you own 100% property in Dubai?

A: In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.

A list of some freehold areas in Dubai are listed below:

  • Arjan 
  • Business Bay
  • Cultural Village
  • Discovery Gardens

Marina City: Development of Budapest’s new Danube-side city quarter begins! – VISUAL PLANS

marina city

Cordia has launched its latest large-scale urban rehabilitation development in Budapest, on the Pest side of the Danube. The Marina City project spans 1.2 kilometres of direct Danube bank, where the company will create a waterfront, multifunctional promenade and 90,000 sqm of car-free green space as part of a HUF 20-billion public-purpose investment.

marina city
Marina City: visual plan. Source: Cordia

Marina City development

Most apartments will offer permanent views of the Danube and the Buda hills. The project will be served by direct metro connections and more than 100 shops, restaurants, full-service facilities, and sports amenities. Marina City, promising outstanding energy efficiency and zero local carbon emissions through unique architectural solutions, will emerge from the complete revitalisation of a 14-hectare abandoned industrial area.

Hungary’s leading residential developer has begun its latest large-scale neighbourhood renewal project in Budapest based on a unique urban development concept. Cordia, a member of the Futureal Group, is creating Marina City on the banks of the Újpest Quay by revitalising a 14-hectare, long-neglected industrial area known for decades as a rust belt zone.

According to the plans, over the coming years, more than 2,500 apartments will be built in several phases, offering breathtaking views of the Danube and the Buda hills. The residential buildings represent an unprecedented architectural style in the capital. The upper floors will feature increasingly spacious homes thanks to the buildings’ upward broadening, chalice-like massing, while luxury penthouse apartments will be on top levels.

Revitalising neglected neighbourhoods

marina city
Marina City: visual plan. Source: Cordia

“Since its foundation, Cordia and the Futureal Group have been committed to revitalising neglected urban neighbourhoods. Over the past two decades, we have gained extensive experience in implementing long-term urban rehabilitation projects. In addition to the iconic Corvin Promenade, we have been involved in developing the South Buda City Centre, where we have built Hungary’s first smart shopping and entertainment centre, Etele Plaza, and the Budapest One office building. We are also working on several neighbourhood revitalisation projects abroad. But what did we see in the abandoned area of the former shipyard, what guided us when creating this concept?

It has been our vision to make perhaps the greatest asset of our city, the Danube riverbank, directly accessible to the people of Budapest in a dignified manner, without the sight and noise of cars, in an exciting and varied form. These will be unique homes where residents can wake up every day as if on a waterfront vacation, rejuvenated by the wonderful view of the Danube and the Buda hills. This will be a place where we can breathe in the fresh air from the Danube Bend and feel free at every moment. It will also be a place where buildings have zero local carbon emissions and exceed the strictest, most forward-looking energy requirements.

We envisioned a neighbourhood that provides all services locally, from which the city centre can be reached by metro within minutes, and where cars are underground. We envisioned a development where the Danube Bank and the panorama are permanent, and the buildings represent eternal value. An exemplary, forward-looking, free, modern, smart, and green and blue city vision set us on the path of creation once again,” Gábor Futó, co-founder of the Futureal Group, said at the cornerstone-laying ceremony of Marina City yesterday. Dr. József Tóth, the Mayor of the 13th District, was also present and gave a speech.

During the development, the northern Pest Danube promenade will be extended by 1.2 kilometres, creating a direct, pedestrian- and cyclist-friendly connection between the river and the residents and visitors of the new neighbourhood. Another unique feature of Marina City’s architectural concept is that the green area will more than triple compared to the current state. Between the sparsely-placed residential buildings and along the Danube bank, 90,000 sqm of car-free, landscaped environment will be created, accessible to everyone and offering numerous leisure and sports opportunities.

marina city
Marina City: visual plan. Source: Cordia

Due to this, residents of the new neighbourhood can live in an environment close to nature and water, without giving up the proximity of the city centre. At the same time, the nearby Duna Plaza provides convenient shopping options. The area will become entirely car-free, as the garage area and the routes of service vehicles—such as garbage trucks, movers, and food delivery—will be taken underground. As part of the investment, Cordia is also developing a unique flood protection system on the site, which will be created by constructing an environmentally fitting high embankment and applying landscaping elements—the implementation of which has already begun.

The Marina City development concept’s defining pillars are sustainability and outstanding energy efficiency. The developer uses grid electricity from green sources during construction. The heating energy needs of the buildings are covered by air-to-water and ground-source heat pumps, eliminating the need for natural gas or district heating. Solar panels will be installed on the roofs of residential buildings, supplementing the grid electricity required to operate energy-producing equipment from green sources.

In response to the rapid expansion of electric vehicles, Cordia is also implementing its proprietary flexible charging management system capable of meeting the complete charging needs of vehicles. An intelligent energy management system regulates the optimal operation of all these systems: consumer operations, heat requirements, and electrical power. Additionally, every apartment in Marina City will be a smart home, including essential equipment such as heating-cooling intelligent control via a mobile application, automatic ventilation based on external and internal humidity sensing, and smart blind movement control.

marina city
Marina City: visual plan. Source: Cordia

As a result, apartments’ heating, cooling, and hot water production energy costs are ranked A+ and A++ energy efficiency classes, corresponding to the A+2023 energy classification, and are expected to stay below HUF 1,000 per sqm per year at current prices.

Also serving sustainability, the investment—unlike many greenfield projects that are difficult to reach by public transportation—takes place near several bus routes and stations of the M3 metro line. Furthermore, the development of bicycle and micromobility infrastructure also receives significant attention.

On the Marina City site, a kindergarten and a Clubhouse accessible to the neighbourhood’s residents and workers will be built. The latter will be the largest such facility in the capital, serving community functions. It will include a fitness or wellness centre, coworking spaces, a community kitchen, and an indoor play area for children.

“The reception of our pre-sale campaign targeting previous buyers of our projects has been extremely positive, with nearly 50 per cent of the first-phase apartments already sold. The unique concept of Marina City, combined with Cordia’s proven reliability, has generated such intense buyer interest that we will soon launch the sale of apartments being built in the second phase of the development,” said Tibor Földi, President of Cordia International’s Board of Directors.

Cordia has enlisted the expertise of the internationally-renowned architectural firm Bjarke Ingels Group in the urban rehabilitation project. Garten Studio is responsible for landscape design, TÉR-TEAM engineering office is handling flood protection system design, and building design is being undertaken by Dyer Group, Közti, Radius B+S, and Puhl and Dajka Architectural Office.

The investment, which includes significant road and green area development and implementing flood protection measures, amounts to over HUF 400 billion at current prices. It is crucial for Marina City’s realisation that the development is located in a rust belt area. This allows for the application of a reduced 5 per cent VAT rate applicable to properties built in such areas, which buyers can reclaim.

About Cordia

Cordia is one of the most significant residential real estate development and investment groups in Europe. It has a strong, well-known brand and presence in the mid to upper-mid segments of the new apartment markets in Hungary, Poland, Romania, and the United Kingdom. It also has pilot projects in Spain.

The Cordia Group has a two-decade history and has received numerous international awards, including the “ULI Global Awards for Excellence” awarded by the Urban Land Institute, the International Property Awards, the “Best Mixed-Use Project in Europe” awarded by Bloomberg TV and The New York Times, and the “Best Purpose Built Project Worldwide” award in a special category awarded by the International Real Estate Federation (FIABCI).

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Shocking Trends: Cost of rent in Budapest and nationwide goes through the roof

apartment to rent in Budapest madarász38_lakopark

Rent in Budapest saw a 1.8% increase in March, as per the KSH-ingatlan.com rent index, with a nationwide uptick of 0.8%, based on the KSH-ingatlan.com rent index. Year-on-year comparisons reveal a staggering 11.7% surge in national rent prices and a 12.4% spike in the capital.

By mid-April, average monthly apartment rent in Budapest hovered around 270,000 HUF (EUR 684), fluctuating across districts from lows of approximately 180,000 HUF (EUR 456) to highs nearing or exceeding 380,000 HUF (EUR 963).

According to 444.hu, rents in county towns ranged from HUF 90,000 (EUR 228) to 220,000 (EUR 558). Recent data suggests a challenging rental market, with national monthly price increases slowing to 0.8% from February’s 1%, while the cost of rent in Budapest witnessed an acceleration from 1.1% to 1.8%, as noted by László Balogh, chief economist at ingatlan.com.

The economist also stated that the national monthly rent growth is primarily driven by constraints on purchasing power rather than inflation, attributing the rise in rents to wage increases.

Cost of rent in Budapest and nationwide

This trend may explain why the average cost of rent in both Budapest and Debrecen has crossed psychological barriers. The average rent for available apartments in Budapest stands at 270,000 HUF (EUR 684), with smaller flats under 40 square metres averaging 185,000 HUF (EUR 469).

Balogh observed that if wage growth continues at a similar pace, Budapest could expect an average rent of around 300,000 HUF (EUR 760) next year. He also mentioned recent government initiatives such as Youth Guarantee Plus and Housing Allowance 2024, introduced this spring, which may alleviate some pressure from the escalating cost of rent in Budapest and nationwide.

These plans offer social rent subsidies aimed at helping young people and job seekers in finding housing and employment opportunities.

Supply data for April reveals notable discrepancies across districts. Notably, District V emerges as the most expensive, with rents reaching up to HUF 380,000 (EUR 963). Among districts with high availability, Districts XI and XIII closely align with the capital’s average rent, settling around 270,000 HUF (EUR 684). On the contrary, Districts XVIII and XXI offer more affordable options, with rents below the HUF 200,000 (EUR 507) mark.

Shifting the focus to the county market, Debrecen emerges with the highest average rent, surpassing the 200,000 HUF (EUR 507) threshold by mid-April, clocking in at an average of 220,000 HUF (EUR 558).

Following closely behind are Győr, Székesfehérvár and Veszprém, where rents range between HUF 176,000 (EUR 446) and 180,000 (EUR 456). Conversely, cities like Miskolc, Salgótarján and Békéscsaba offer more budget-friendly options with rents falling between HUF 90,000 (EUR 228) and HUF 100,000(EUR 253).

In the evolving rental market landscape, new data reveals interesting changes and challenges regarding the cost of rent in Budapest and nationwide. The significant rise in average rents in March, particularly pronounced in the capital, raises concerns about housing affordability and availability. Balogh’s insights underscore a complex interplay between rising rent prices, purchasing power and wage dynamics, suggesting a need for a nuanced approach to address these issues effectively.

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