Best Investment Opportunities in Hungary

A few reasons why both professional and private investors like to invest their money into Hungarian real estate investments:

• Stable and Investor-Friendly Legal Framework: Hungary provides a transparent and efficient legal environment for property transactions, ensuring security and predictability for investors. 
• Attractive Tax Structures: The country offers favorable tax conditions, including a 5% VAT on newly built properties and VAT exemption on second-hand apartments. Additionally, the wealth transfer tax is 4% of the property’s market value, with a cap of HUF 200 million for amounts over HUF 1 billion. 
• Infrastructure Development: Hungary continues to invest heavily in infrastructure, including transportation and urban expansion projects. The government has announced plans to invest approximately €1.5 billion in transportation infrastructure from 2023 to 2027, enhancing property values and market attractiveness. 
• Strategic Location: Situated in the heart of Eastern and Central Europe, Hungary serves as a commercial crossroads between East and West, with the Danube River enhancing its strategic importance.
• Rich History and Skilled Workforce: With a history spanning over 1,100 years, Hungary boasts a highly educated and motivated workforce, making it an attractive location for major corporations to establish regional centers.
• Competitive Property Prices: Hungary’s real estate market remains affordable compared to Western European countries. For instance, the average price of an apartment in Budapest at the end of 2023 was around €3,200 per square meter, significantly lower than in cities like Vienna (€6,000/m²) and Munich (€8,500/m²). 
• Economic Growth and EU Membership: As a member of the European Union, Hungary benefits from economic stability and access to EU funds, positively impacting the real estate market. The country’s GDP has grown by an average of 4.5% per year from 2017 to 2023, fostering a favorable environment for property demand. 

Comparison of the average new flat prices in EUR / square 

Budapest, Hungary: Approximately €3,200

Prague, Czech Republic: Approximately €5,500

Vienna, Austria: Approximately €7,000

Bratislava, Slovakia: Approximately €5,000

Several years ago, Hungary was ranked 8th on Site Selection’s list of best countries to invest in with 74 lucrative investment projects. The investment situation has been on a constant rise since and it looks bright and shiny in 2019.

In recent years, Hungary has experienced a significant surge in investment activity, particularly in the real estate sector. In 2023, the country attracted a record €13 billion in foreign direct investments (FDI), marking a substantial increase from the €6.5 billion received in 2022. 

The Hungarian Investment Promotion Agency (HIPA), managed by the Hungarian Government and the Ministry of Foreign Affairs and Trade, has been recognized for its efforts in fostering investment. In 2023, Hungary featured prominently in the FDI Intelligence European Cities and Regions of the Future Awards, with Budapest, Debrecen, and Central Hungary ranking among the top 10 in various categories. 

The real estate market in Hungary has also shown robust growth. In 2023, housing prices increased by 5.8% compared to the previous year, with new homes experiencing an 11.5% rise. 

Additionally, the residential segment is projected to grow at an annual rate of 5.87% from 2025 to 2029, reaching a market volume of US$1.96 trillion by 2029. 

These developments underscore Hungary’s commitment to creating a favorable investment climate, particularly in the real estate sector, making it an attractive destination for both domestic and international investors.

Market Size 2023 vs 2024

The Hungarian real estate market has shown significant growth from 2023 to 2024, continuing its upward trajectory. In Q1 2024, the market saw a 16% increase in both supply and demand for residential properties compared to the same period in 2023

This growth is indicative of a robust market recovery and a continued boom driven by Hungary’s strengthening economy and favorable investment conditions. Property prices in Budapest have continued to rise, with the average price per square meter for a brick apartment reaching €2,533. Meanwhile, regional markets, such as those around Lake Balaton, also saw increased activity, especially due to ongoing development projects. Additionally, the introduction of the Golden Visa program is expected to further boost demand, with foreign investors now able to gain residency through property purchases worth at least €500,000.

These factors make 2024 an ideal time to invest in Hungary’s real estate market, as experts predict a 15–20% increase in market activity throughout the year.

Market size growing ahead to 2025

As of January 2025, Hungary’s real estate market is experiencing notable developments that are shaping its orientation for the year.

Price Trends and Market Dynamics

In 2025, Hungary’s housing market has surged, with significant price increases. The main drivers of this rise in demand are the release of pension savings and the decline in yields on previously lucrative government bonds, encouraging more individuals to invest in property. This phenomenon has triggered a substantial boom, particularly in the market for one- and one-and-a-half-bedroom flats, where nearly all sales are taking place rapidly as prices escalate. 

Duna House forecasts that annual home sales in 2025 could be around the middle of the 110,000-130,000 range, marking an approximately 14% increase compared to 2023 and a two-year high. They also anticipate that the annual price increase could be around 10-20% in 2025. 

Policy Changes and Investment Opportunities

In December 2024, Hungary announced the termination of its real estate investment option under the Guest Investor Program, commonly known as the Hungary Golden Visa. This decision, effective January 1, 2025, reflects a broader European trend of reevaluating such programs. 

Despite this change, Hungary’s real estate market remains attractive due to factors such as economic stability, urban development, and infrastructure projects. The residential real estate market in Hungary is projected to reach a value of US$1.27 trillion in 2025, indicating a robust growth outlook. 

In summary, Hungary’s real estate market in 2025 is characterized by rising property prices, increased sales activity, and significant policy shifts. While the abolition of the Golden Visa program may influence investment patterns, the market’s overall strength and growth prospects remain positive. Investors should stay informed about these developments to make strategic decisions in this evolving landscape.

Options at Your Disposal

If you want to buy real estate in Hungary, you can search on your own or through a Hungarian company dealing in real estate. Your main options include a flat in Budapest, a house in Budapest, a house in the countryside, and a place for renting. Here are a few words on each option.

The first and most expensive option is a flat in the country’s capital – Budapest. In recent years, prices of real estate in Budapest have significantly risen above the prices in other regions.

You should also know that the location of the apartment plays a big role in the price, as does the age. The average price for a square meter in Budapest is around 3200 euros.

Buying a house in Budapest can be more affordable than buying a flat. Of course, there are villas in and around the city which go for mind-boggling sums, but the majority is far more affordable. Buying a house can be a better solution if you want more peace and privacy.

Going for a house in the countryside may be an even more affordable option. However, you should be careful if you’re planning to purchase a tanya – a house that used to be a countryside farm.

If there are Hungarian bidders, they will have the advantage. Also, you won’t be able to buy a property bigger than 10,000 square meters.

Finally, you can opt to buy a property to rent it. Most investors who opt for that solution go for two apartments, while some buy even more. That way, you can live in one apartment and rent out the other(s), thus securing your income, which is the key to acquiring a residence permit.

What documents do you need for this? If you have a company registered in the country, you don’t need a permit to buy real estate if your company purchase it. This is the easiest and simplest way to get into the real estate market. That said, foreigners who don’t own Hungary-based businesses can also obtain real estate.

European Union citizens can buy property in Hungary with no restrictions. However, non-EU citizens will first need to obtain a residence permit from the Hungarian government. After that, they will need to obtain a permit to buy land. The latter can be obtained at the local district council and it costs approximately 200 euros.

Buying Process

When you decide on a property, it is recommended to hire a lawyer and perform structural and architectural checks of the property. This will also activate the property valuation and title search.

Once the property has been cleared, the lawyer should draft the contract. The lawyer, the seller, and the buyer have to sign the contract. A real estate office representative also needs to be present at the signing.

You should pay the deposit at the signing; in general, it is the 10% of the property purchase price. You also cover both the agent’s and the lawyer’s fees. Also, you will have to submit the agreement to the local land registry no more than 30 days after signing.

The process of obtaining the permission then takes another two to three months to complete. Once you get it, you should inform the seller right away. After that, you can sign the Closing Statement, a document that declares that you’ve paid the entire sum to the seller. Registration of the ownership will then take up to six months.

The entire purchase process will be overlooked by your local land registry.

Recommended Professionals

If you’re a foreigner buying property in Hungary, you will need to hire an attorney who will draft your contract and who will then take it to the land registry to be verified. He or she can also help with other steps along the way.

It is also recommended to hire a real estate agent or agency. This will greatly facilitate the process and reduce the chances of you getting scammed or charged too much.

Do You Need a Permit to Buy a Real Estate in Hungary?

Companies established in Hungary are not required to obtain a permit to purchase property. However, the regulations differ for non-Hungarian individuals who do not have a registered company.

If you’re an EU citizen, you don’t need a permit either. However, non-EU citizens do need a permit to purchase real estate in Hungary.

Hungarian Stock Market Overview

The Hungarian stock market is centered around the Budapest Stock Exchange (BSE), known as Budapesti Értéktőzsde (BÉT). Established in 1864, it is Hungary’s main marketplace for trading stocks, bonds, derivatives, and other financial instruments. The BSE plays a critical role in Hungary’s financial system and offers opportunities for both domestic and international investors.

Key Facts about the Budapest Stock Exchange (BSE):

• Location: Budapest, Hungary
• Currency of Trading: Hungarian Forint (HUF)
• Main Index: BUX
   
  
  • The BUX Index is the benchmark index representing the performance of the most actively traded and largest companies listed on the BSE.
  • Key companies in the BUX include OTP Bank, MOL Group (oil and gas), Richter Gedeon (pharmaceuticals), and Magyar Telekom.

Trading Hours:

• Pre-Market Trading: 8:15 AM – 8:30 AM (local time)
• Regular Trading: 9:00 AM – 5:00 PM (local time)

International Accessibility:

The BSE has made efforts to attract foreign investors by offering English-language trading platforms and aligning its regulatory framework with European Union standards.

Recent Developments:

1. Economic Growth Impact: 
    
   
   • Hungary’s post-COVID recovery and EU funding have positively influenced market performance.
   • Companies in banking, energy, and pharmaceuticals are seeing growth.
2. Sustainability Focus:
    
   
   • The BSE is increasingly focusing on ESG (Environmental, Social, Governance) investment opportunities.
   • Green bonds and sustainable financial instruments are gaining traction.
3. Digital Transformation:
    
   
   • The exchange is modernizing its platforms and adopting digital technology to streamline trading and enhance accessibility.

Investment Opportunities:

• Stocks: Large-cap companies like OTP, MOL, and Richter Gedeon dominate trading volumes.
• Bonds: Government bonds are popular among conservative investors.
• Derivatives: Futures and options for advanced traders.

Outlook for 2025:

The Hungarian stock market is expected to benefit from economic growth, increasing foreign investment, and a stronger focus on innovation and sustainability. It remains a key player in the Central and Eastern European financial ecosystem.