Published: December 04 2023
Foreign buyers are flocking to Hungary's property market, with an increase in demand for real estate in various regions of the country. This article will explore the key countries leading the way in foreign property purchases and the trends observed in the Hungarian property market.
Popular regions for foreign buyers
Foreign buyers are particularly interested in the Northern and Eastern border areas of Hungary, as well as the Transdanubian region. Budapest, however, is not as popular among foreign buyers, with Chinese, Vietnamese, and Israeli buyers not returning in high numbers.
Key countries in foreign property purchases
Germany, Slovakia, China, and Romania are the top countries from which foreign buyers are purchasing properties in Hungary. Between 2018 and 2022, German buyers increased significantly, while Chinese buyers experienced a decline due to the COVID-19 pandemic. Romanian buyers saw a slight decrease in transactions, but Slovakian buyers significantly increased their property purchases.
Preferences for Budapest and the countryside
Chinese, Vietnamese, and Israeli buyers primarily focus on purchasing properties in Budapest, while Dutch and German buyers prefer the Hungarian countryside. In 2022, the majority of transactions in Budapest were carried out by these East Asian buyers, while only a small percentage of Dutch and German buyers acquired properties in the capital.
Popular villages and towns outside Budapest
Apart from Budapest, there is a growing interest in villages and towns among foreign buyers. Romanians, Slovakians, Austrians, Belgians, and Swiss buyers are attracted to the peaceful, affordable, and safe Hungarian countryside, especially after retirement.
Changing trends and price fluctuations
The percentage of property transactions in Budapest has decreased over the years, while the number of buyers from the UK has significantly increased. Austrians and Ukrainians are paying considerably more for real estate in 2022 compared to 2018. French buyers, on the other hand, have shifted their focus to countryside properties. Russians, Ukrainians, and Romanians are also interested in buying expensive properties in Budapest's elite Buda districts.
Overall, Hungary's property market is experiencing a surge in foreign buyers, with different regions and countries showcasing varying trends and preferences.
Questions & Answers
Which regions in Hungary are foreign buyers most interested in for real estate investment? Foreign buyers are most interested in regions such as the Northern and Eastern border areas and the Transdanubian region in Hungary.
Is Budapest a popular choice for foreign real estate buyers in Hungary? No, Budapest is not as popular among foreign buyers as other regions in Hungary. Chinese, Vietnamese, and Israeli buyers have not returned in high numbers to Budapest.
Which countries have the most foreign buyers purchasing property in Hungary? The countries with the highest number of foreign buyers purchasing property in Hungary are Germany, Slovakia, China, and Romania.
How has the number of foreign buyers in Hungary changed from 2018 to 2022? The number of foreign buyers in Hungary has increased from 7,300 contracts in 2018 to 8,000 contracts in 2022.
What happened to the number of Chinese buyers in Hungary due to the coronavirus pandemic? The number of Chinese buyers decreased due to the coronavirus pandemic. However, they have started returning to the Hungarian property market in 2022, although their numbers remain half of the 2018 peak.
Which group of foreign buyers purchase property mainly in Budapest? Chinese, Vietnamese, and Israeli buyers primarily purchase property in Budapest. 9 out of 10 transactions in 2022 happened in the capital.
Which countries prefer to buy property in the Hungarian countryside rather than in Budapest? Dutch and German buyers prefer to buy property in the Hungarian countryside. In 2022, only 6% of their apartments were located in Budapest.
Why do foreign buyers choose villages and towns outside Budapest? Foreign buyers, such as Romanians, Slovakians, Austrians, Belgians, and Swiss, choose villages and towns outside Budapest because they often come to retire and enjoy the healthy Hungarian countryside, relative safety, and lower cost of living compared to their home countries.
Which countries have seen the highest price increase for real estate in Hungary from 2018 to 2022? Austrians and Ukrainians have seen the highest price increase, with a 119% rise for an average real estate in 2022 compared to 2018.
Which country's buyers have seen the lowest price increase for real estate in Hungary from 2018 to 2022? French buyers have experienced the lowest price increase, with only a 19% rise. This is likely because they have turned to properties in the countryside.
Which country's buyers have shown significant increase in purchasing apartments and houses in Budapest in 2022 compared to when they were EU members? Buyers from the United Kingdom have shown a significant increase in purchasing apartments and houses in Budapest in 2022 compared to when they were EU members.
Which nationalities are interested in buying expensive properties in Budapest's elite Buda districts? Russians, Ukrainians, and Romanians are interested in buying expensive properties in Budapest's elite Buda districts, according to Csaba Laczi, a regional director of OTP Ingatlanpont.
