Kossuth Lajos utca 7-9, Budapest, Hungary, 1053

Real estate market in Hungary

Hungary’s real estate market is highly attractive. Property prices grow by about 6% annually, driven by high demand from tourists and expatriates. Also, purchasing property in Hungary offers a unique chance to obtain a 10-year residency.

budapest hungary real estate 2024
€2,600

Average property price per square metre

€176,000

Average new home price in Budapest

€75,000

Average second home price in Budapest

€500,000

Minimum real estate investment for a Golden Visa

Real estate market in Hungary: an overview

According to the Hungarian Central Statistical Office, home sales in Hungary in 2023 were down 25% compared to the previous year. Although sales had been declining throughout the year, they began to rise in the fourth quarter. Overall, housing prices in 2023 were 5.8% higher than the previous year.

Prices for second-hand homes increased by 5.0%, while new homes saw an 11.5% rise, both slower than in past years.

Hungary’s real estate market is seeing a significant surge in demand for residential properties, fuelled by growing urbanisation and the recently introduced Golden Visa. In 2024 and 2025, Hungary is expected to experience further price growth driven by increased investor interest.

Trends in Hungary’s House Price Index

Budapest Hungary real estate

5 reasons to invest in Hungarian real estate

1. Getting a Golden Visa

Obtaining residency through real estate investment is now a rare opportunity. It will be available in Hungary starting January 1st, 2025.

A 10-year residence permit is granted to those who purchase property in Hungary for at least €500,000.

2. Strong market growth

Hungary’s real estate market is growing stably, making it a promising investment opportunity.

Property prices in Hungary are experiencing consistent annual growth of 6%, with no significant fluctuations anticipated.

3. Affordable property

Compared to other European countries, such as Portugal or Spain, property prices in Hungary are relatively affordable.

For example, it is 30% more affordable to buy property in Budapest than in Lisbon.

4. High rental demand

With 46 million tourists visiting Hungary annually, there is a strong demand for rental properties, ensuring steady rental income.

The expected annual yield is approximately 3.5%.

5. Favourable location

Hungary’s central location in Europe offers excellent connectivity, enhancing the appeal of its real estate investments.

Where to buy property in Hungary

Budapest

Pécs

Szombathely

Kecskemét

Győr

Debrecen

Average new homes prices in the most popular regions of Hungary

Region Average price Average price per m² New homes sold
Nyíregyháza €85,000 €1,500 97
Kecskemét €95,500 €1,750 91
Szombathely €98,000 €1,860 142
Győr €114,000 €2,170 80
Budapest, district XVIII €108,500 €2,350 74
Budapest, district XIV €186,000 €2,600 137
Budapest, district XVI €173,000 €2,600 52
Budapest, district IV €160,000 €2,600 53
Budapest, district IX €139,400 €2,600 234
Budapest, district III €200,000 €2,700 212
Budapest, district VIII €159,500 €2,900 85
Budapest, district XIII €181,000 €3,200 566
Siófok €191,000 €3,300 97
Budapest, district XI €217,000 €3,900 123

Source: Hungarian Central Statistical Office, Housing price index, Q4 2023

Property prices in the most popular districts of Budapest

How to buy property in Hungary as a foreigner

The process of purchasing property in Hungary for foreigners takes 2 to 3 months. If the buyer applies for a Golden Visa based on this purchase, the whole procedure will take about 6 months.

1. Select a property to view

Investors outline their real estate preferences based on factors such as cost, area, location, and necessary infrastructure.

Real estate specialists then curate a selection of residential properties that meet these criteria, ensuring they also comply with the requirements for obtaining a residence permit.

Lawyers arrange property viewings tailored to your convenience. Alternatively, they provide comprehensive remote viewings with detailed photo and video reports.

Lawyers thoroughly verify the legal status of the selected property and the credentials of the owner or developer.

After the property is chosen, a preliminary agreement is drafted. It outlines the property’s technical specifications, address, transaction amount, responsibilities of both parties, and the ownership transfer process.

The buyer is then required to make an advance payment of 10% of the property’s cost. This advance payment is non-refundable if the buyer decides to withdraw from the transaction.

Based on the preliminary agreement, lawyers secure the necessary permission to purchase the real estate. This process typically takes 2 to 4 weeks.

During this period, the Hungarian Land Registry restricts any owner transactions involving the selected property.

Once permission to purchase is granted, the main purchase and sale agreement is finalised. The buyer then transfers the remaining balance to the seller.

The investor also signs a purchase and sale agreement that stipulates that the property cannot be sold for five years after the purchase.

To finalise the transaction, a property owner’s passport must be obtained. A lawyer from the Land Registry secures this document.

The property owner’s passport is essential for applying for a residence permit in Hungary.

Real estate buyers must pay a stamp duty of 4% of the property’s value within 90 days of the purchase.

Initially focusing on investments in Asia, I harboured a long-standing ambition to acquire real estate in Europe. To this end, I commenced an extensive research into property prices across various European countries.

Upon discovering the high costs of properties in many regions, I turned my attention to Hungary and identified an opportunity in Budapest. I proceeded to purchase an apartment there, which I subsequently rented out to tourists, generating a substantial annual income.

I sold the apartment for a 28% profit over the original purchase price. Now, I can safely say that the decision to invest in Hungarian real estate has proven to be highly rewarding.

Ethan Tan,

Investor from Singapore

Obtaining Hungarian residency as a real estate investor

According to Hungary’s official gazette, the option to purchase residential real estate under the Golden Visa programme will become available from January 1st, 2025, as specified in paragraph 121 of the amendments.

The minimum investment in Hungarian real estate is €500,000. There are no requirements regarding the location, condition, and size of real estate yet. However, further requirements may be specified later. Presumably, the living area must be at least 6 m² per family member.

Other options to obtain Hungarian residency by investment include:

  • a purchase of real estate fund units for €250,000;
  • a donation to higher educational institutions of €1,000,000.

Before purchasing property off the Hungarian real estate market, investors obtain a Guest Investor Visa valid for up to 6 months. To do this, they confirm their intent to buy property in the country. The Guest Investor Visa allows them to enter Hungary and apply for a residence permit card. If an investor is able to travel to Hungary visa-free, this step will be skipped.

Investors must fulfil the investment condition within 93 days of their initial entry into Hungary with the Guest Investor Visa.

Initiate the process now: ensure your Golden Visa spot is secured within the quota

Housing price indices in Hungary

budapest hungary real estate

Taxes for property owners in Hungary

Overall, the expenses for purchasing real estate in Hungary are about 10% of the property’s cost. Real estate buyers in Hungary pay the transfer tax for the acquisition of real estate, administrative fees, and legal services.

After concluding the transaction, buyers must pay a stamp duty of 4% of the property’s value, applicable if the property does not exceed 1 billion Hungarian forints, or €2.6 million. For the portion of the value exceeding HUF 1 billion, the applicable rate is 2%. The stamp duty must be paid within 90 days of the purchase.

Buyers of the new property pay a 5% VAT, which is usually included in the property’s price.

Administrative fees include:

  • €170 to €200 for obtaining permission to purchase real estate;
  • €60 for a prohibition of real estate transactions;
  • €30 for the cadastral register certificate;
  • €22 for the property owner’s certificate.

Additionally, the buyer covers the fees for legal services, which typically amount to no more than 5% of the property’s value.

Benefits of the Hungary Golden Visa

Visa-free travel within the Schengen Area

A low cost of living

Opportunities for tax optimisation

Access to high-quality healthcare and education

The ability to open accounts in European banks

Frequently asked questions

Yes, foreigners can buy property in Hungary. The process is relatively straightforward, but there are a few regulations to keep in mind.

Non-EU citizens typically need to obtain a permit from local authorities. EU citizens, however, do not require such permits and can purchase property under the same conditions as Hungarian citizens.

Purchasing residential property in Hungary grants the right to obtain a Golden Visa, which secures a residence permit for 10 years.

The cost of a house in Hungary varies significantly based on location, size, and condition.

In Budapest, prices are higher, especially in central districts. As of 2024, the average price per square metre in Budapest ranges from €3,000 to €5,000. A typical family home might cost between €300,000 to €600,000 or more, depending on the neighbourhood and property condition.

In cities such as Debrecen, Szeged, and Pécs, prices are lower than in Budapest. The average price per square metre in these cities ranges from €1,500 to €2,500. A typical family home might cost between €150,000 to €300,000.

Yes, Hungary is considered a good place to buy property for several reasons:

  1. Compared to many European countries, Hungary offers relatively affordable property prices, making it an attractive market for investors looking for value.
  2. The Hungarian real estate market has shown steady growth, with property prices increasing by around 6% annually, driven by high demand from both local and foreign buyers.
  3. Purchasing property in Hungary can offer a unique opportunity to obtain a 10-year residence permit, providing long-term stability and access to the European Union.
  4. Hungary’s central location in Europe offers excellent connectivity and access to major European markets, making it a strategic choice for investors.
  5. Hungary boasts a rich cultural heritage, vibrant cities, and beautiful landscapes, offering a high quality of life for residents and an appealing environment for tourists.

The real estate market in Hungary is experiencing notable growth and transformation, characterised by several key trends and factors:

  • rising property prices;
  • high demand in urban areas;
  • investment opportunities;
  • affordable property prices;
  • diverse property market.

Overall, Hungary’s real estate market is dynamic and promising, driven by economic growth, increasing demand, and supportive government policies. For investors and homebuyers, Hungary presents a compelling mix of affordability, growth potential, and quality of life.

In Hungary, there is no annual property tax as seen in many other countries. However, there are several taxes and fees associated with buying and owning property:

  • stamp duty — 4% of the property’s value, applicable if the property does not exceed 1 billion Hungarian forints, and 2% for the portion of the value exceeding HUF 1 billion;
  • VAT for newly built properties — typically 5%, which might be included in the property’s sale price;
  • administrative and legal fees.

Get in touch today

Our team assists international clients in navigating the process, minimising risks, and safeguarding their finances. Submit an application to discover strategies to secure your Hungary Golden Visa.