Is Property in Hungary a Good Investment?

Hungary joined the EU back in 2004 and prior to its accession it was heralded as one of the most exciting emerging property markets in the new Europe because investment was being made into the improvement of the nation, international companies were considering relocating to Hungary and therefore broadening employment prospects and improving the economic standards and buying power of local citizens.

But since Hungary joined the European Union its housing market has failed to go from strength to strength, it has failed to emerge as an exciting investment sector for international property investors and many are now asking the question – ‘is property in Hungary a good investment?’

The answer to the question differs dramatically depending on who you ask.  We approached development companies currently working on property projects in the main cities and districts in Hungary including one working the Vaci ut corridor in Budapest and we were assured that as a property investment destination Hungary, and in particular Budapest, remains highly attractive with average annual predicted property price gains in the region of at least six percent and demand for property to let intensifying all the time.

However, on the other hand when approaching the market from a buyer’s perspective and also speaking to estate agents in Hungary the feeling in the property sector seems to be dramatically different to the positive vibe given off by the developers. 

Apparently not only is the amount of property changing hands down dramatically this year but the prices being asked for property in Hungary are being slashed almost monthly by desperate vendors.

There is a demand deficit and an affordability problem in Hungary; the local population cannot afford the prices being asked for property and there is nothing to suggest that this will change anytime soon – after all Hungary is already in the EU and has therefore missed out its most significant chance to attract investment and create a booming economy – and no one can currently afford the prices being asked for property for sale in Hungary.

Add to this the fact that those international investors who can afford to buy property in Hungary cannot actually afford to ask for the rental income necessary to cover all of their costs and generate any form of decent income.  So, is property in Hungary a good investment?  We always advise people to judge for themselves based on their own requirements from an investment property – but in this instance we would urge potential investors to tread carefully at least in the short term.

Special Reports: Property News for Hungary

Hungary Property Buying Process
The duration of the property buying process in Hungary can seem interminable, but apart from that the process is straightforward

Hungary for Property Buyers
Hungary has a popular real estate market with local and international property investors it offers strong profit and yield potential.

Hungary Property Investment
Investors are enjoying good capital growth in Budapest where the majority of property investment is centered in Hungary