Hungarian Buyers Show Increased Interest in Spanish Properties

Interest in property in Spain from Hungary has increased in the last few years. The majority of Hungarian buyers end up in the Costa del Sol region, where they can buy year-round rentals at Budapest and Lake Balaton prices. Some of those interested are planning to settle, but the majority are just looking for good investment opportunities, László Czakó, managing director of Amigo Húngaro Hungarian agency, a company specializing in resettlement and property purchases in Spain, told Világgazdaság.

Last year, official statistics showed an average price increase of 15% in the Costa del Sol region, where properties in the most popular towns such as Málaga, Benalmádena, and Marbella often sell out in hours, due to heightened demand.

It is a strange local custom, but even with increased buyer interest, there is no bidding.

Even though buyers would pay more for a property offered for sale, sellers will settle with the first serious buyer. In an increasingly ‘first come first served’ housing market, a good deal requires strong local knowledge and a constant presence.

It is worth being aware of the threshold prices. Today it is not worth going for less than EUR 180,000 for a two-bedroom apartment, but EUR 130,000 is the minimum you need if you are looking for a one-bedroom or studio apartment on the Costa del Sol. The entry level is valid for the whole region, but the most attractive city

is Málaga, which has become Europe’s Silicon Valley, attracting Spaniards as well as digital nomads from all over the world,

László Czakó explained.

Those looking for a long-term, stable tenant can also choose from a selection of applicants, as 30-40 candidates apply for a new advertisement every day. Tenants are usually asked to pay the whole year’s rent in advance, which is constantly rising, from EUR 1,000 a month in Málaga recently, to EUR 2,000 a month for a well-located apartment with one living room and two bedrooms.

Within Spain, there are justifiable, significant price differences between provinces and regions, and the conditions are so different that everyone can find a choice to suit themselves and their goals and tastes. Because of the extremely favorable payment conditions, not only are second-hand properties and old towns with a special atmosphere in demand, but also new-build properties. In Amigo Húngaro’s experience, the demand for new-build properties is so high that in the best projects, 50-60% of the properties are sold from the drawing board. Prices for new build properties are also rising rapidly, thus it is important that buyers get into a good project at the right time.

A two-bedroom apartment in a normal, livable area of Costa del Sol is now available from EUR 170-180,000, which in most cases means a living room, two bedrooms, two bathrooms, ideally with a terrace. However, apartments with sea views start from EUR 240-250,000 in the two-bedroom category.

In addition, on the Costa del Sol, a two-bedroom new-build modern apartment can now be bought for EUR 400-500,000, with a truly exclusive location and setting, with stunning sea views, for EUR 700-900,000.

Prices there are also very much influenced by the condition of the building and the apartment itself, but even more so by the area in which it is located, and proximity to the sea, the expert concluded.

Via Világgazdaság; Featured image via Facebook/Amigo húngaro – Magyar ügyintéző iroda Costa del Sol-on