Asian Countries Top the List of Buyers in the Capital’s Real Estate Market

Vietnamese are currently the biggest buyers in the Hungarian property market, followed by Israeli and Chinese buyers and investors. Among other things, Ben-Ezra Orran, head of Central Home, told Világgazdaság that there are more and more Israeli property management companies in Hungary, while Germans prefer to invest their money in office buildings, and the HUF 150 million (EUR 381,806) apartments in the capital have also attracted the interest of Ukrainians.

Central Home has been a dominant player in the Budapest city center real estate market for a decade and a half, and in their experience, the imaginary podium for foreigners in the domestic real estate market is as follows:

• Vietnamese,
• Israelis,
• Chinese.

“By and large, only the order varies, with these three countries consistently at the top of the list of interested buyers,” the expert pointed out. Ben-Ezra Orran added:

the greatest demand for apartments for around HUF 150 million has been seen since the outbreak of the Russian-Ukrainian war, with such properties attracting a large number of Ukrainian tenants and buyers.

He said that in the last one and a half to two and a half years, it has been mainly the larger luxury apartments that have been rented out, but many would also like to buy them.

Based on data from the Hungarian Central Statistical Office (KSH), one third of all housing purchases by foreigners took place in Budapest in 2022. According to the KSH, the most popular districts in the Hungarian capital were the inner districts of Pest and the 13th district. At Central Home, however, it is believed that District 7 was the favorite (Districts 5 and 6 were limited due to the lack of Airbnb permits).

The districts where foreigners are most looking for properties according to Central Home are 5, 6, 7, 8, 9 and 13.

Ben-Ezra Orran has compiled a list of the most popular neighborhoods in the city center property market, covering six districts of Budapest, at the request of Világgazdaság:

District 5:

• around the Parliament and Kossuth Lajos Square,
• on the banks of the Danube with panoramic views of the Danube, and
• Erzsébet Square, Szabadság Square and the surrounding streets.

District 6:

• the section between Andrássy Avenue and Király Street.

District 7:

• the area around Gozsdu Court,
• Klauzál Square (increasing interest due to renovations).

District 8:

• the area around the Hungarian National Museum, the Palace District,
• Bródy Sándor Street,
• Szentkirályi Street.

District 9:

• Ráday Street,
• the area around Ferenc Square.

District 13:

• Pozsonyi Road,
• Szent István Park.

Chinese and Russian buyers are the main players in the Budapest real estate market, emphasized Ben-Ezra Orran. “Chinese buyers are interested in premium apartments in the city center – luxury or impeccably renovated, with a minimum of 2-3 bedrooms – and new build projects,” he noted, adding that Russian interest has been somewhat volatile in recent years due to the war and the resulting political and economic situation.

The expert also reminded that the new legal category – somewhat synonymous with a resettlement scheme – will be introduced next year.

The new ruling will give citizens of countries outside the European Union the opportunity to obtain a 10-year residence permit and the EU passport for a guest investor in Hungary by purchasing property worth EUR 500,000 or investing at least EUR 250,000.

Mr Orran underlined the reception among domestic industry players will be mixed: interest from foreign investors and buyers is expected to increase, but the economic benefits for the Hungarian market are not yet known.

Via Világgazdaság; Featured image via Pexels