Foreign Buyers Flocking into Hungary’s Hot Real Estate Market!

Among others Chinese and Israelis are fond of buying properties in Hungary. Compared to last year, the interest of non-EU citizens has largely risen in Hungarian real estates.

A governmental report is shedding new light on the impact of foreign buyers on Hungary’s property market. The volume of transactions by non-EU citizens in Hungary has picked up by 50 % than in the last year. Two third of real estate transactions by foreign buyers has been snapped up in Budapest. In 2015 there were Chinese, Russian, Ukrainian and Israeli citizens buying properties in Hungary.

In Q1 the percentage of foreign buyer activity:

·         Nationally China is cited as the main international region generating home purchases in the country (36%)

·         15 % of the foreign home buyers are from the South Pacific

·         The average of the Middle Easterners was 5 %

·         European citizens are also crucial, however, only a few number of transactions was carried out by Italian, Austrian, German, French, English or Scandinavian citizens.

Where and what kind of properties are sought by the foreign investors?

In Q1 foreign buying was concentrated mainly in the downtown of Pest (the half of the foreign transactions was realized there). 60-80 sq. m apartments for about 45 million HUF were the most wanted ones. In the outskirts of the downtown the average number of the foreigners was much lower (1-3%).

·         Chinese buyers preferred luxury properties in prestigious neighbourhoods. The less well offs tend to buy 60-70 sq. m apartments in the outer districts, however, they also purchase homes in multi-household buildings.

·         Russian, Ukrainian buyers are interested in expensive residential buildings, however, their impact of foreign buying on Hungary’s overall residential real estate market has become significantly smaller since last year.

·         Advisors have also seen an increase in Italians buying among luxury apartments in Budapest.

(Source: http://hvg.hu/gazdasag/20160505_magyar_ingatlan_kulfoldi_vevo)