25.06.2025 • 5 min. reading time
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INTERVIEW WITH DOMONKOS GYÖRGY, LICENSE PARTNER AT VON POLL REAL ESTATE BUDAPEST.
Budapest is not only the capital of Hungary, but also the economic, social and cultural heart of the country. It is a UNESCO World Heritage Site and is home to several spectacular sights and architectural highlights – including the Buda Citadel, the Royal Palace with its 800-year-old castle district, the parliament building on the Pest embankment and the basilica in the city centre. The numerous spas and lidos as well as the distinctive coffee house culture are just a few aspects that contribute to the high quality of life in the ‘Pearl of the Danube’. The master licence partners at VON POLL REAL ESTATE Budapest, Domonkos György and Dr Kató Zoltán, know all about the special features of the city and are the right contact persons to talk to when it comes to buying a property in Hungary – especially Budapest. Domonkos György gives an insight into the current market situation and shows what particularly prospective international buyers should bear in mind.
Mr. György, briefly summarise the status quo: What is the current situation on the Budapest property market?
DOMONKOS GYÖRGY
After stalling in 2023 due to high inflation, rising mortgage interest rates and the resulting fall in purchasing power, the Budapest property market experienced a significant upturn in 2024. Following price declines in 2022, there were now double-digit price increases again – for example, prices for condominiums in Budapest rose by 14.3 percent. Transaction figures also rose again, as many of the previously postponed purchases were realised in 2024 due to improved interest rate conditions. Since then, sought-after properties in good condition have been brokered within two to three months, and exclusive properties in prime locations often even within a few weeks. Two- to three-bedroom apartments are particularly popular with both domestic and international investors, as they can be let long-term at a good price-performance ratio. Budapest is still undervalued compared to other Central and Eastern European capitals – this price difference will narrow in the long term. There is therefore considerable potential for Budapest to increase in value.
What trends and forecasts do you see for the coming years?
DOMONKOS GYÖRGY
This year, a significant proportion of the government support and funds saved will be invested in the renovation and refurbishment of existing properties. This will therefore play a major role in the coming years. As in many other metropolises, there is a shortage of available living space in Budapest. It is therefore no coincidence that property developers are launching new projects – particularly in the residential segment – with increasing dynamics. In fact, the number of building permits issued in the first quarter of 2025 tripled compared to the previous year. So, we will see significant growth in this segment in the medium to long term. This includes not only smaller residential projects, but in some cases entire city neighbourhoods, such as Marina City in the 13th district on the Danube. But there is also strong investment in several neighbourhoods in the 14th district in Zugló.
Where are the most popular and stable regions in Budapest?
DOMONKOS GYÖRGY
There are several districts and neighbourhoods that are particularly popular with investors. The most sought-after is the 13th district – located north of the city centre on the Pest side – where currently many new apartments are being built. But the 11th district on the Buda side in the south-west of the city is also in high demand. In addition, Budapest's city centre is traditionally very popular. There is a large selection of exclusive premium apartments in the central 5th district. Neighbouring districts 6, 7, 8 and 9 are also among the locations with excellent living quality, although they offer somewhat more moderate prices than the 5th district. Prices for apartments with a view of the Danube are not included here – these are among the best locations in the city and are much more expensive. The most expensive areas are in districts 2 and 12 in the west of Budapest. Prospective buyers will find numerous green spaces, a quiet residential neighbourhood and spacious detached houses and villas here.
How high is the proportion of international buyers in Hungary and Budapest? And where do most prospective buyers come from?
DOMONKOS GYÖRGY
Across the country, the proportion of international buyers is just two to three percent. In Budapest, however, it is significantly higher at around twelve per cent. Chinese buyers are the most active on the Budapest property market – especially in districts 7, 8 and 13 near the city centre, where they already have strong community ties. Following Brexit, the number of British buyers has also increased significantly. After the Chinese, they are currently the largest group of buyers in Budapest. There are also many buyers from Vietnam, but the proportion of Russian and Ukrainian buyers has also increased. Although German buyers make up the largest group of international buyers nationwide, the proportion is lower in the capital itself. The reason for this is that German buyers tend to favour more rural areas such as Lake Balaton and other regions in Transdanubia.
How difficult is it for international buyers to obtain a mortgage or financing?
DOMONKOS GYÖRGY
It is relatively easy for international customers to get a loan – especially if they have a residence permit in Hungary. Most Hungarian banks offer mortgage loans for international buyers – especially those from the European Union. However, the granting of loans is subject to several conditions: for example, proof of income in Hungary or long-term employment in Hungary is an advantage. In some cases, a Hungarian address, tax number and a Hungarian bank account are also required. Generally, at least 20 to 30 per cent equity is needed. Some banks also accept foreign income, but this must be proven by employer certificates, bank statements and tax returns.
How does the buying process for international buyers differ from that for domestic buyers? Are there any legal obstacles?
DOMONKOS GYÖRGY
In principle, buying a property in Hungary is similar for domestic and international buyers. Nevertheless, there are a few aspects that international buyers should bear in mind. EU citizens can purchase residential property under the same conditions as Hungarian citizens – so without additional authorisation. Non-EU citizens, on the other hand, must apply for a special permit for the purchase from the relevant government agency and a Hungarian tax number from the National Tax and Customs Administration. The authorisation procedure can extend the processing time. Attention must also be paid to legal representation, tax regulations and possible visa requirements.
Are there any cultural peculiarities on the Hungarian property market that prospective international buyers should be aware of?
DOMONKOS GYÖRGY
‘Haggling’ does indeed play an important role in the Hungarian property market. Especially international buyers should be aware that prices are usually negotiable. The scope for negotiation naturally depends on the location and condition of the property. A property on the Danube, for example, rarely comes on the market, so there is little room for negotiation in this case. Furthermore, it is customary in the residential property segment to submit bids. In order to be well prepared for the particularities of the Hungarian property market – such as the interpretation of land deeds, local regulations, geographical conditions and market mechanisms – the support of local property experts is essential.
How can customers benefit from your network and experience?
DOMONKOS GYÖRGY
Our property experts can look back on many years of experience in real estate brokerage. In addition, as part of the VON POLL IMMOBILIEN network, we work according to German standards, which clearly sets us apart in the market. This also requires our property consultants to undergo continuous further training to guarantee the consistently high quality of our service. VON POLL REAL ESTATE Budapest offers its clients personalised service and expert support at the highest level throughout the entire brokerage process. We help international buyers to navigate the Hungarian property market, find the most suitable opportunities for them and assist with legal and financial processes.
What additional services do you offer international clients to make it easier for them to buy property on site?
DOMONKOS GYÖRGY
International clients will find competent contacts at our Budapest office – in German, English, Spanish and even Chinese. Our services go far beyond mere market analyses, detailed location and property price evaluations and the determination of potential returns. We offer our international clients translation services, sound legal advice and support in obtaining authorisations and checking documents. We also handle negotiations and, if required, help with the administration of visas and residence permits. Interested parties from other countries are therefore in the best hands with us and benefit from our expertise in supporting an international clientele.
Dear Mr. György, thank you very much for the interesting conversation.
Further information about the team around Domonkos György from VON POLL REAL ESTATE Budapest as well as the current property offers on site, contact details and much more can be found at https://www.von-poll.com/en/real-estate-agent/budapest
