Number of foreigners buying real estate in Hungary has dramatically decreased
There is demand from Germany and the Netherlands, but the number of foreigners buying real estate dramatically decreased. In 2019, foreigners made up 5 per cent of buyers. The decrease might be the result of the virus and Brexit.Â
Blikk writes that in 2020, fewer buyers came from every country, except for Slovakia. In our former article, we wrote that Borsod County was getting popular among Slovak citizens. Real estate costs less in Hungary than in Slovakia. In Kassa, for example, the average cost per square metre was 1,325 euros. In comparison, one square metre in Borsod cost only 372.94 euros.
The number of people interested in Hungarian real estate from Germany, the Netherlands, Poland, and China increased. The number of people wanting to buy real estate in Hungary dropped by 24 per cent among residents of the United Kingdom. This might be due to Brexit, as well as taking caution in the middle of the pandemic. Demand from Russia and Israel dropped as well. In total, 40 per cent fewer foreigners bought real estate in Hungary last year.
When buying real estate, you must consider the price and the location. Real estate prices in Hungary can vary based on the region. Budapest is notoriously expensive. The average price per square metre is 2,765 euros. The gap between the cheapest and the most expensive property can be as much as 2.5 million euros. Salgótarján, Nagykanizsa, and Dunaújváros are less expensive in terms of real estate prices. Read about the cheapest options HERE.
Read alsoConsidering moving to Hungary? This is what you need to know
If someone would like a more traditional home, Ormánság seems to be the location. Many houses in the area are protected real estate, which means that owners can apply for funds to restore the houses. Home Renovation Support (OtthonfelújÃtási támogatás) can be another option, and the sum can be up to 3 million forints (€ 8,227).
Even in famous wine regions, prices differ. In some locations of the Tokaj region, cheaper houses that should be renovated are priced 13,800-19,300 euros. Real estate in other areas may cost 22,100-41,400 euros. In Kunság, real estate can be bought for 11,050–13,800 euros. In the Pécs area, properties can be bought for 55,250 euros.
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With the weak forint, property in Budapest is cheaper than ever for people with money in the main currencies (USD, Euros, GBP). Budapest is cheap compared to Paris or London, for instance and has a stable rental market that for me at least, produces a steady 6% yield on the properties that I own and rent in the city. So, the overseas buyer market will bounce back in due course.
The property market – its total landscape picture – the components that it consists of – is overly SATURATED – with Sellers.
Supply and Demand – very evident in the mechanics of the functioning of the property markets – broadsheet – in Hungary – that SELLERS outweigh Buyers.
Hungary – the decline of the huf – its “worth” – its “cheapness” against “other” currencies – makes for “robust” discussion and consideration – to look at Hungary having an up-side in investment into the “broadsheet” property market in Hungary.
“Don’t look at situations through Rose Coloured Glasses” – is my advice.
Ensure the total – Finacial and Economic picture we are witnessing in Hungary – that it meets the soundness – the up-side potentials – if looking at property from an investment perspective – or if – HUNGARIAN – to secure and purchase as a long life-time Investment.
Don’t be Tunneled Vision or One – Domensional – with the Property game – research it and the FACTORS – that short,medium and long term – have influence and effects on your Investment.
We continue to build – renovate – across the “broadsheet” of the property and hotel industry – in Hungary.
Supply over Demand – “I Rest my Case.”
We have on-going a novel coronavirus not just in Hungary “scareing and brusing ” us – but Europe and the United Kingdom.
U.S.A. – seen what the latest inflation rate is ?
Post February 2020 – we are living in a changed world – that Financially and Economically is in a “flimiscal” postion.
“Don’t be Tunneled Vision”.
“Don’t be One-Domensional.”
“Don’t look at situations – through Rose Coloured Glasses.”
The worlds Economy – the upheval it has suffered post February 2020 – remains FLIMISCAL.
It will take at least a further 2 to 4 years to return to a “core” of stabilization – that resembles – major components of it – its FUNCTIONALITY – globally – that was knew – prior to February 2020.
PLEASE – accelerate – for the young- the first home buyers that country of birth – on there birth certificates – reads Hungary – that they get PRIORITY into entry and purchase of Property in Hungary.
That’s an on-going platform position I hold and used this forum in the past to express my opinions and explanations – and a “wish” and HOPE – that goes under our Christmas Tree this year.
Steady as She Goes – looking into the Hungarian “broadsheet” property market.
Don’ – RUSH in.
Good, let the locals be able to afford to buy a house. We are seeing this massive problem throughout many countries (notably Canada) with foreigners/outside buyers driving up the housing market making it unaffordable for locals to buy homes.
The past decade in Hungary has seen the property market – apartments, flats, houses and warehousing – inclusive of Hotels, “explode” – in growth and PRICE.
Hungary – has witnessed and statistical data is ALL there on Public Record to view – that the big players behind the rapid increases witnessed “across the board” in the Hungarian property “landscape” – without any factual economic or financial rationale or meaning – just purely investment and speculative driven – the big players have been:
(1) – Chinese.
(2) – Vietnamese.
(3) – Germans.
This list of the (3) three – they have been the major catalyst – why the property market – Landscape” – across ALL of the COMPONENTS – that are the Property Industry – Profession in Hungary.
We left behinh – FORGOT – the first home buyers, the young – our FUTURE – in the born and bred DNA componentry of Hungary.
Foreign Investment Laws – under the Laws of Hungary – and of the European Union – literally powerless to large degree – WHO – in Hungary – is NOT able to INVEST in Property.
If you reside are a resident – in a European Union country – my advice is that – this PERMITS you to buy/purchase property – in any European Country ???
The – BIG 3 – only number 3 Germany – is a Member country of the European Union.
Number (1) continues to display to the Global World – they would like to – RULE the World ///
Is it “open slather” – a “do as you please” – ARENA – Foreign Investment Landscape – lacking law and criterias – in the Hungarian and European Laws – that need – re-visiting, re-writing and TIGHTENING.
This “flippancy” – inviting or could be permitted by law of Hungary and the European Union – investing in property in countries – that are not your place of residency – this has been a MAJOR factor – that has contributed to the DIFFICULTY – for those born and living – the Young- the first home buyers wishing to make a long term lifetime investment – those of Hungarian Birth Certificates – and DNA – to become land and property owners in Hungary.
There are “other” vital points of Economic and Financial reason(s) – why throughout Europe – we have over the past (10) ten plus years – witnessed and still witnessing – look at Australia – up-ward – likened to the steepness of a SPIRE – rising prices in the LANDSCAPE of the Property market.
Hungary – what a challenge it faces – in the Property game – the MASS ownership and on-going Foreign Investment into its Markets.
The ongoing devaluation of the huf – the cheapness of the huf against other major currencies of Europe the World – interest rates IMPOSED by our Central Bank of Hungary – in all probability “another” increase in December.
The Markets of Property in Hungary – are SELLER heavy.
The Demand of Buyers minuscule in comparison to SELLERS.
We live in a country – that re-mains under the “grip” still unknown forces – of a Novel Coronavirus – that 32.000 – Hungarians are no longer living with and amongst us.
We build on – Hungary – we build on – apartements, flats, houses, inclusive of renovations to sell – continue to build new Hotels – and Warehousing Facilities.
This is not a case of – “Build them and they Will Come” – come from where ?
Our population 9.6 million and declined since February 2020 – the commencement date of this ongoing Novel Coronavirus – that FACTUALLY – we see – has been the trend for greater part of the last decade – the Fact that more of our fellow citizens die each year – than new babies are born.
“Build them and they will Come” – Who ?
When it remains of extreme DIFFICULTY – for the young Hungarians by birth certificate and DNA – that are CREDIT Worthy and Riskless – solid employement record and background – to borrow funds for property investment – reason being extreme HIGH levals of Property values – and that the MARKET – is over burdened by SELLERS – this is an interesting cocktail.
Wrong if you think property prices are going to TUMBLE.
The young Hungarians – by birth certificate and DNA – the FUTURE of Hungary – PRIORITIZE – them.
@The Realist: Every generation in every capital city says that. My parents struggled to buy their first house – in 1958. The paid 6,000 GBP. I sold it in 2016 for 1.5 million GBP to a couple in their 30’s.