Budapest Real Estate Market
Developing tourism, thriving academia and attractive prices are just some of the factors that are attracting many international investors to the real estate arena in Budapest. High yields and stable growth in properties value cause them to stay and reap the rewards.
Budapest is responsible for about 40% of the total Hungarian GDP per year
Consecutive quarters of GDP growth
Employment Rate in 2019
Annual growth in 2019
Encouraging new buyers
The demand for mortgages has increased significantly and since 2018 the volume of mortgages increased by 40%. Despite the increase in the mortgage market that allows local residents to purchase apartments easily, the volume of mortgages in Hungary as a percentage of GDP is considered one of the lowest in Europe
Stable students market
The cheap cost of living combined with a diverse and vibrant student life attract approximately 400,000 young people to migrate to Budapest in order to acquire an education.
A wide range of more than 26 universities in Budapest offer studies in a variety of languages and fields.
In 2019, the Hungarian economy grew at a rate of 4.9% compared to the year before, making it the sixth year in a row in the country’s impressive economic growth.
A steady increase of approximately 0.23% in the number of residents in Budapest
Thousands from around the world voted for Budapest as the best European destination for 2019. Budapest is considered one of the most beautiful and safest cities in the world.
An increase of approximately 18% in the volume of international tourism and more than 16 million passengers a year.
Huge players in the global real estate market are entering Budapest. One of the largest investment companies in the UAE has announced the opening of a regional office in Budapest, the Al-Khabdor Group, one of the largest corporations in the Arab Emirates is opening offices in Budapest.
There are various reasons for the steady rise in property prices in the Hungarian real estate market, including economic stability, steady salaries growth, moderate interest rates and low unemployment rate. But these are not the only factors. .The government offers programs that will help Hungarian citizens purchase apartments through one-time grants, tax benefits and subsidized loans.
Limited Supply, Growing Demand.
Despite the steady increase in demand, the supply of properties in the city remained stable, the number of approved building permits increased by 0.9% in 2019 and the number of completed projects decreased by 0.7%.
In 2020, due to the coronavirus, the number of new applications for building permits dropped by approximately 37%. A figure that suggests limited supply in the medium-long term.
Low Unemployment Rate
The average monthly wage for full-time workers in Hungary has risen by about 11.2% year-on-year.
The unemployment rate is steadily declining and stood at 3.4% in 2019 (compared to 3.7% in 2018).
A further increase of approximately 5% in household income.