Among the prominent real estate regions in Europe, Hungary is quickly becoming the most sought after country in the residential realm, with the capital of Budapest and its surrounding areas experiencing high sums of property investments, growing housing demands, and increasing real estate prices.
The effects of these real estate trends can be seem all through the market, as the 13.7 increase in the number of transactions (13,000 entries) in the first two months of 2018 is the highest since the financial crisis of ’08. Projections by Duna House show a 10-20% increase in 2018 as well, or 160,000-180,000 transactions.
Buda and Pest both on the rise
Both distinct sides of the nation’s capital, Buda and Pest, are rising in popularity with real estate investors, as the demand for residential properties continues to grow. On the Buda side of the capital, there was an 8% increase in housing sales, with the majority of sold properties ranging between 40 and 60 sq. meters.
However, there were also notable shifts in the real estate market across the Danube, as the Pest side of the capital experienced a 4% increase in housing sales on properties between 100 and 120 sq. meters. Across the city, though, real estates above EUR 1,930 per sq. meters dominate the market, with demand for properties of this value increasing by 10% in Pest, and 14% in Buda. Moreover, as much as 40% of residential properties in Buda were sold for more than EUR 120,000.
The region is growing as well
While the housing market in the capital of Budapest is on a steady upward trajectory in terms of demand and investments, it’s important to note the surge in real estate opportunities in the regions outside the capital as well. It seems that real estates in the neighboring regions of Budapest ranging from 40-60 sq. meters are the most popular and marketed ones, accounting for more than a third of the sales.
What’s more, with the Hungarian real estate residence program, both business leaders in search of a second home and all other aspiring residents are able to obtain a renewable residency upon purchasing at least two apartments, for ca. EUR 200,000 in total . This further fuels the real estate market and opens up the doors of the country for investors from the commercial and residential realms.
And there are plenty of real estate opportunities to choose from, as Budapest’s area increased by 9% in the 140-160 sq. meter housings, with most real estates sold for at a price ranging from EUR 32,218 and 48,326 in the countryside. That said, the real estates in the Pest countryside are valued between 48,326 and 80,544 euros.
Brick houses vs apartments
It’s important to note that the overall housing prices in the east of Hungary are generally more affordable, with the average real estates running for as little EUR 42,000. However, even cheaper properties can be found in the western part of the country, going as low as EUR 38,000. With that in mind, how do brick houses compare to city pads and apartments?
While the prices of apartments in the capital increased by EUR 322 on the Buda side and EUR 161 on the Pest side, brick houses became even more expensive since 2017, with used properties in the inner areas of Budapest costing as much as EUR 2,213 per sq. meter. On the Buda side, you will find properties going for a similar price of EUR 2,146, while the Pest side is significantly more affordable at EUR 1,418. However, brick houses can take significantly more time to sell, averaging around 100-140 days in Buda, and even longer in Pest.
The Hungarian real estate market is, without a doubt, experiencing an unprecedented rise portrayed by the increase in housing demands, real estate investments, and the growing prices of properties around the country. With this opportune environment in full swing, now is the time to invest in the Hungarian residential property market, and even snag a second passport in the process.