Growing Interest from Foreign Buyers in Hungarian Real Estate Market

Published: December 01 2023

The Hungarian real estate market has seen a growing interest from foreign buyers, particularly in regions outside of the capital city. Despite the impact of COVID-19, foreign buyers have returned to the market, with certain countries showing higher levels of activity. This article will discuss the trends in foreign buyer interest in the Hungarian real estate market.

Foreign home buyers have shown a higher interest in regions outside of the capital city. The opportunities offered by the northern and eastern border regions, as well as Transdanubia, such as commuting and old-age resettlement, have contributed to this trend. However, the capital city has seen a decline in interest from foreign buyers, with only a fraction of the usual Chinese, Vietnamese, and Israeli buyers returning to the Hungarian market.

Four countries stand out in terms of turnover in the Hungarian real estate market: Germany, Slovakia, China, and Romania. Chinese buyers showed a significant drop in interest due to COVID-19, with a decrease of around 50%. Romanian buyers also experienced a decline, stabilizing at a lower level of 25%.

The location preferences of foreign buyers vary among different nationalities. Chinese, Vietnamese, and Israeli buyers tend to prefer the capital city, with nine out of ten choosing Budapest. On the other hand, Dutch and German buyers show a preference for the Hungarian countryside, particularly the area around Lake Balaton. The reasons behind these preferences include public safety, affordable property prices, and the advantageous purchasing power of their euro-denominated pensions. Some foreign buyers also choose quieter domestic settlements, with less than 20% of Romanians, Slovaks, Austrians, Belgians, and Swiss buyers opting for properties in the capital city.

The statistics also indicate significant price increases for foreign buyers between 2018 and 2022. Austrians and Ukrainians experienced the largest cost increases, with the average spend of Austrians increasing from HUF 14.7 million to 32.2 million and that of Ukrainians increasing from HUF 19.3 million to 42.3 million. Swiss buyers saw a 107% rise in prices. On the other hand, French buyers, who have turned to the countryside, recorded a more modest average price increase of just 19%.

The Hungarian real estate market has seen an increase in foreign buyer interest, with certain countries driving turnover. Regions outside of the capital city have become more popular among foreign buyers, offering various opportunities and advantages. Understanding these trends can provide valuable insights for both buyers and sellers in the Hungarian real estate market.

What regions in Hungary are attracting foreign home buyers? The northern and eastern border regions, as well as Transdanubia, are attracting foreign home buyers in Hungary.

Which country's buyers have shown the most interest in the Hungarian housing market? Germany, Slovakia, China, and Romania are the countries whose buyers have shown the most interest in the Hungarian housing market.

Has the COVID-19 pandemic affected the Hungarian housing market? Yes, during the first year of the pandemic in 2020, around 20-30% fewer homes were bought in Hungary compared to before.

What caused a dramatic drop in Chinese buyers' interest in the Hungarian market? The COVID-19 pandemic caused a dramatic drop of around 50% in Chinese buyers' interest in the Hungarian market.

Which group of foreign buyers mostly choose Budapest as their preferred location? Nine out of ten Chinese, Vietnamese, and Israeli buyers choose Budapest as their preferred location.

Which group of foreign buyers prefer the Hungarian countryside, particularly around Lake Balaton? Dutch and German buyers are fans of the Hungarian countryside, with an average of two out of three of their group choosing the area around Lake Balaton.

What are some reasons why foreigners prefer the Hungarian countryside? Some reasons why foreigners prefer the Hungarian countryside include public safety, affordable property prices, and the high purchasing value of their euro-denominated pensions.

Which foreign buyers prefer quieter domestic settlements over Budapest? Romanians, Slovaks, Austrians, Belgians, and Swiss buyers prefer quieter domestic settlements over Budapest.

Which countries experienced the biggest cost increases for foreign buyers in Hungary between 2018 and 2022? Austrians and Ukrainians experienced the biggest cost increases for foreign buyers in Hungary between 2018 and 2022.

Which country's buyers saw the largest increase in the number of homes bought in Hungary last year? Buyers from the UK saw the largest increase in the number of homes bought in Hungary last year.