According to statements of the Hungarian Central Statistical Office, in 2015 the housing market rose just like the prices. Due to the numerous urban developments and public measures, this increase will not stop in 2016.
In 2015, calculated on an annual basis, the increase was 11 % in second-hand home prices and 8 % in the prices of newly built flats compared to 2014. It was not different in the first quarter of 2016. This increase was 5,6 % in second-hand home prices and 4,7 % in the newly built flats prices.
Price trend in the housing market
This price increase occurred mainly in Budapest, where for example, the square meter price of second-hand apartments grew from 290 000 to 331 000 forints in the first quarter of 2016.
The prices of the new homes also increased in the first three quarter of 2015, and after a short slow down, it began to grow again in the first quarter of 2016.
Interesting that the difference between the average square meter price of new and existing homes in Budapest can be more than 100 thousand forints. There is also a huge difference between the districts, especially in the V., VI. Districts, where the prices can be more than 40 per cent greater.
In recent years, not only the prices, but also the number of sales have increased, especially the sales of second hand apartments. In 2015, due to the increase in demand for residential units, 134 thousand apartments were sold, which was 18% more than the year before. Moreover, 130 700 of this properties were second-hand homes and 3400 were new homes. This value is significantly higher than in the same period of the previous year, when 110 500 second-hand apartments and 3 300 new home were sold. However, the number of new homes which were built for sale, decreased to 3100 from 3400.
According to the Hungarian Central Statistical Office, in 2016 the prices will continue to grow.
Purchases of real estate in Hungary by foreigners
Hungarian law requires that real estate purchases shall be concluded through private contract (purchase agreement) countersigned by a lawyer. Non-Hungarian citizens are further obliged to gain the approval of the relevant Administrative Office in order to purchase property as a private person. According to regulations most foreigners should receive a permit within 2-3 months.
Most lawyers advise foreign nationals to set up a company registered in Hungary in order to purchase property. In this case, no permit is needed. This is a fairly swift and easy procedure (taking 1-2 days), and all expenses can be written off.