Real estate market in Hungary have seen a major boom since 2016 and the apartment prices in the central location runs around HUF 500,000 per square metre.
Foreign and Non-EU citizens require a valid residence permit to buy a residential and commercial property (requires license) in Hungary. There are no restrictions for EU citizens. Most lawyers advise foreign nationals to set up a company registered in Hungary in order to purchase property to reduce the duty.
The best locations to buy a property in Budapest are District 5, District 6, District 7, District 8 (quite cheap) and Buda side (District 1, 2). It is also best to buy a flat along the tram line (4/6) as these areas are quite convenient. Other good areas in central budapest are around Basilica, Corvin negyed, Raday utca, Kalvin ter but prices are quite high. Prices in Balaton or Szentendre are cheaper than in central Budapest.
Non-EU persons can buy a residential or commercial property in Hungary if you have a hungarian residence permit. It is still cheap to buy a flat in Budapest starting from €60,000 euros for a studio flat. There are no restrictions for EU citizens to buy a property in Hungary.
There are additional costs such as
- 4% stamp duty,
- 1.5% lawyer fee,
- 2% agent fee.
Rental yields are about 7-8% in central Budapest.
In the first quarter of 2017, 2,061 new dwellings were built, 47% more than a year. According to Global property guide, the prices in Hungary hit historic high in 2015 and the demand keeps growing.
The property registration process takes about 4-6 weeks.