If you’re thinking about buying property in Budapest as a foreigner, you’re among a growing number of people to do so! Consider these essentials before entering into Budapest’s real estate market.

According to the latest real estate market reports*, the price increase of pre-owned homes in brick buildings is above 10 percent in all districts of Budapest, compared to property sales prices in the first half of last year. 

After five years of massive growth in the residential property market, it reaches a psychological limit of 1 million forints per square meter of more and more downtown apartments.

According to the "Global Residential Cities Index - Q3 2018." report by Knight Frank, Budapest shows the highest 12-month residential property price growth in Europe.

According to the report released by the Hungarian National Bank (MNB), the Hungarian housing market continued to intensify in the first half of 2018, which in addition to the dynamic rise in the apartment prices, was reflected in the increase in the sales volume.

Budapest is not only the favorite choice of tourists in the region but the Hungarian capital is also the top pick among real estate investors. According to the latest data, in the Central-European region, Budapest provides the best value for money if you are thinking about buying an apartment in the city center.

In Budapest there are currently 20 000 apartments being built or planned to be built.

Over the last 3-5 years, the Hungarian real estate market has gone through tremendous changes. In 2013, there was a slow downturn in the pre-owned home market, followed by an accelerating rise in prices. This rise was moderated in 2017, but the real estate prices are still increasing.

With the new academic year starting in September, this month is certainly the season to see and expect the apartment rental market boom in Budapest.    

A new proposal for the year 2018 would lift the 14% tax on rental income. 

The national average in 2016 on the value increase of residential properties in Hungary was 15,4%, according to a report by the Hungarian National Bank.   

2017 will be dominated by new home constructions, with an estimated total of 14,000-15,000 homes expected to be buitl this year.