Foreign Investors Transform Hungary’s Real Estate Market
Foreign property purchases in Hungary, particularly from non-EU buyers, have been on the rise, impacting the country’s housing market significantly. The surge in property acquisition requests from non-EU buyers in 2023 has sparked discussions about potential measures to address the situation, especially in Budapest and certain counties.
According to reports, there were 2,981 applications for property acquisitions from non-EU buyers in 2023, marking an 18% increase from 2022. Chinese buyers led the trend with 647 applications, showing a preference for higher-priced properties in Budapest. The distribution of these purchases was not uniform across the country, with Budapest’s inner districts and some counties experiencing a higher percentage of purchases by foreign buyers.
Chinese buyers favored certain Budapest districts, while Russian buyers and Ukrainians also made significant purchases in specific areas. The Budapest City Council is considering a two-year ban on property purchases by non-European Economic Area citizens as part of a broader plan to address the city’s housing crisis. However, this measure faces challenges and conflicts with the government’s golden visa program, which aims to attract non-EU investors.
Currently, non-EEA buyers must obtain permission from government offices to purchase property in Hungary. As the country grapples with these trends, the effectiveness of any implemented measures will be closely monitored, potentially shaping future policies in the Hungarian real estate market.
