25.06.2025 • 5 min. reading time
Content of this article
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 a number of 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 center. 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 license partners at VON POLL REAL ESTATE Budapest, Domonkos György and Dr. Kató Zoltán, know the special features of the city and are the right people to talk to when it comes to buying real estate in Hungary - especially Budapest. Domonkos György gives an insight into the current market situation and shows what prospective international buyers in particular should bear in mind.
Mr. György, could you briefly summarize the situation? What is the current state of the Budapest real estate market?
DOMONKOS GYÖRGY
After stalling in 2023 due to high inflation, rising mortgage interest rates and the resulting drop in purchasing power, the Budapest real estate 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%. Transaction figures also rose again, as many of the previously postponed purchases were realized in 2024 due to improved interest rate conditions. Since then, sought-after properties in good condition have been sold within two to three months, while exclusive properties in prime locations are often sold within a few weeks. Two- to three-bedroom apartments in particular are popular with both domestic and international investors, as they can be rented out on a long-term basis 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 state 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 major cities, there is a shortage of available housing in Budapest. It is therefore no coincidence that developers are launching new projects with increasing momentum, particularly in the residential segment. In fact, the number of building permits issued in the first quarter of 2025 tripled compared to the previous year. We will therefore 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 districts, such as Marina City in the 13th district on the Danube. But there is also strong investment in several districts in the 14th district in Zugló.
Where are the most popular and stable regions in Budapest?
DOMONKOS GYÖRGY
Basically, there are several districts and neighborhoods that are particularly popular with investors. The most sought-after is the 13th district - north of the city center on the Pest side - where a large number of new apartments are currently being built. But the 11th district on the Buda side in the southwest of the city is also in high demand. In addition, Budapest's city center is traditionally very popular. There is a large selection of exclusive premium apartments in the central 5th district. Neighboring 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. The 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 environment and spacious detached houses and villas here.
How high is the proportion of international buyers in Hungary and Budapest? And where do the prospective buyers come from?
DOMONKOSGYÖRGY
Across the country, the proportion of international buyers is just two to three percent. In Budapest, however, it is significantly higher at around twelve percent. Chinese buyers are the most active on the Budapest real estate market - especially in districts 7, 8 and 13 near the city center, 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 prefer 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?
DOMONKOSGYÖRGY
It is relatively easy for international customers to obtain 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, there are several conditions attached to the granting of a loan: 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 percent equity is required. 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 hurdles?
DOMONKOS GYÖRGY
In principle, the real estate purchase process in Hungary is similar for domestic and international buyers. Nevertheless, there are a few aspects that international buyers should be aware of. EU citizens can purchase residential property under the same conditions as Hungarian citizens - i.e. without additional approval. 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. Here, the approval procedure can extend the processing time. Attention should also be paid to legal representation, tax regulations and possible visa requirements.
Are there any cultural peculiarities on the Hungarian real estate market that prospective international buyers should be aware of?
DOMONKOS GYÖRGY
Bargaining does indeed play an important role in the Hungarian real estate market. International buyers in particular 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 real estate segment to submit bids. The support of local real estate experts is essential in order to be well prepared for the particularities of the Hungarian real estate market - such as the interpretation of land deeds, local regulations, geographical conditions and market mechanisms.
How can clients benefit from your network and experience?
DOMONKOS GYÖRGY
Our real estate experts have 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 real estate consultants to undergo continuous further training in order to guarantee the consistently high quality of our service. VON POLL REAL ESTATE Budapest offers its clients personal service and expert support at the highest level throughout the entire brokerage process. We help international buyers navigate the Hungarian real estate market, find the most suitable opportunities for them and assist with legal and financial processes.
What additional services do you offer to international clients to make it easier for them to buy real estate locally?
DOMONKOS GYÖRGY
International clients will find competent contacts at our Budapest office - in German, English, Spanish and even Chinese, among other languages. Our services go far beyond mere market analysis, detailed location and real estate price evaluation as well as working out the prospects for returns. We offer our international clients translation services, sound legal advice, support in obtaining permits and document checks. 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.
Mr. György, thank you very much for this interesting interview.
Further information about the team around Domonkos György from VON POLL REAL ESTATE Budapest as well as the current real estate offer on site, contact details and much more can be found at https://www.von-poll.com/de/immobilienmakler/budapest
