Russians are interested in real estate in Hungary, but in recent years, Russians have begun to give way to the Chinese and took the 3rd place according to number of deals.
According to data, the number of transactions with foreigners is increasing at the same rate as the overall domestic real estate market is growing. In 2018, 3,529 Hungarian properties were bought by foreigners.
In the whole country, transactions for the purchase of real estate by foreigners account for about 5-8% of total sales. But this figure is much higher in Budapest – about 15-20%. More than 40% of buyers from non-EU countries buy real estate in the five best areas of Budapest.
The share of transactions in the market of Budapest real estate Russians accounts for about half. The rest of the real estate purchased by the Russians falls in other cities. Last year Russians bought several properties in the countryside too: Hévíz, Sopron, and Keszthely.
During 2018, foreigners bought about 7,300 residential properties in Hungary, at par with the previous year. While foreign homebuyers made up only about 2.3% of all sales transactions nationwide, they reach 12% in Budapest and 26% in the inner districts of Pest. This is one of the reasons for the huge price difference between the city and the whole country.The annual growth of prices in Budapest reaches 20.8% during 2018. In 2019, the market situation has changed. On a yearly basis, the demand for second-hand apartments in Budapest has declined by 14% since the beginning of June 2019. This can be partly explained by the fact that real estate investors are less interested in purchasing new properties. At the same time, demand for new homes in Budapest has increased by 7% during the summer period. As far as the countryside is concerned, the need for rural properties was similar to last year’s results. The Hungarian capital’s 14% drop might stop price increase in the market of second-hand homes in Budapest. The number of sales in Budapest’s real estate market can also drop since demand shows a close correlation with the number of purchases. The expert also added that the decreasing number of sales might result in the fallback of the continuously increasing price level of second-hand apartments in Budapest.