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Why is Hungary the perfect real estate investment destination?

03 December 23

Affordable Prices
Compared to Western European countries, real estate prices in Hungary are relatively affordable. For example, the average price of an apartment in Budapest at the end of 2023 was around 3,200 EUR/m², while in Vienna (Austria) it was approximately 6,000 EUR/m², and in Munich (Germany) around 8,500 EUR/m². This presents a significant opportunity for investors looking to enter the European real estate market without requiring a large investment.

Stable Market
Hungary’s real estate market has demonstrated stability in recent years, with steady growth in property values and rental yields. According to the National Bank of Hungary, real estate prices in Budapest increased by an average of 8% annually between 2018 and 2023. In May 2024 alone, property prices rose by more than 1%, with a year-on-year increase of 4.5%, and in Budapest, prices surged 5.8% over the past 12 months. This stability reassures investors about the safety of investing in this market.

Favorable Regulations
Hungary offers investor-friendly regulations, with a straightforward and efficient process for purchasing real estate, saving investors both time and money.

In addition, Hungary is launching a Golden Visa program, offering a 10-year residency permit with the option to renew, available through real estate-related investments:

  1. Investment in a real estate fund from 250,000 EUR, effective from July 1, 2024.
  2. Direct real estate investment starting at 500,000 EUR, effective from January 1, 2025.

This is a notable benefit for investors seeking an EU residency permit, granting them visa-free travel, free education for their children in Hungary’s public schools, or the possibility of relocating to another country.

Growing Economy
Hungary’s steadily growing economy fosters a favorable environment for real estate demand, both in residential and commercial sectors. Hungary’s GDP grew by an average of 4.5% per year from 2017 to 2023, according to World Bank data. This economic development drives demand for property purchases and rentals, offering high returns for real estate investors.

Rental Demand and Tourism
Budapest and other major cities in Hungary attract a large number of tourists annually, generating strong demand for short-term rental properties. In 2023, Hungary welcomed approximately 15 million tourists, according to the United Nations World Tourism Organization (UNWTO). This creates attractive rental yields for real estate investors.

EU Membership
As an EU member, Hungary benefits from EU funds and economic stability, which can positively impact the real estate market. For instance, Hungary received around 6 billion EUR from EU funds between 2021 and 2027 to invest in infrastructure and economic development. Investors can feel confident about the long-term stability and growth potential of this market.

Infrastructure Development
Hungary continues to invest heavily in infrastructure development, including transportation and urban expansion projects. The Hungarian government has announced plans to invest approximately 1.5 billion EUR in transportation infrastructure from 2023 to 2027, including expanding the highway network and improving public transport systems. These projects not only increase property values but also enhance the attractiveness of the market for investors.

As a team of many years of experience, GlobalCiti is planning to offer a comprehensive A-to-Z consultation for our valued clients. With the Golden Visa in hand, you hold the key to an open door to Europe.

Contact us today for more details and the best support!