Learn about property market in Budapest and check our unique offerings for both local and foreign investors
Also called “the Pearl of the Danube”, Budapest is famous for its ancient history and rich heritage, boosting more than 30 cultural heritage sites. Many of them are also listed as UNESCO World Heritage sites
Strategic location in the heart of Europe
Commercial and industrial strength
Affordable and extensive transportation (4 metro lines, large tram and bus network incl. night services)
Cultural diversity
Rich history make Budapest a very attractive investment destination
Budapest is also a safe city with friendly people and a large expat community
The total property transaction costs are around 5% to 10% of the property value
Transfer tax is levied at progressive rates, from 2% to 4%
Real estate agent’s fee is around 3% to 5% plus 27% VAT
Lawyer’s commission fee is approximately 1% of the property value
Net rental income is taxed at a flat rate of 15%. When computing for taxable income, income-generating expenses are deductible from the gross rent
Personal income and net capital gains are taxed at a flat rate of 15% in Hungary
Taxe on Corporate income is 9%
Also called “the Pearl of the Danube”, Budapest is famous for its ancient history and rich heritage, boosting more than 30 cultural heritage sites. Many of them are also listed as UNESCO World Heritage sites
Strategic location in the heart of Europe
Commercial and industrial strength
Affordable and extensive transportation (4 metro lines, large tram and bus network incl. night services)
Cultural diversity
Rich history make Budapest a very attractive investment destination
Budapest is also a safe city with friendly people and a large expat community
The total property transaction costs are around 5% to 10% of the property value
Transfer tax is levied at progressive rates, from 2% to 4%
Real estate agent’s fee is around 3% to 5% plus 27% VAT
Lawyer’s commission fee is approximately 1% of the property value
Net rental income is taxed at a flat rate of 15%. When computing for taxable income, income-generating expenses are deductible from the gross rent
Personal income and net capital gains are taxed at a flat rate of 15% in Hungary
Taxe on Corporate income is 9%
Learn more about different neighborhoods in Budapest
Inner city, the main financial district and the location of the Parliament buildings. The chic Fashion Street in Deák Ferenc utca makes the area an investment hotspot in downtown Budapest.
Terézváros – the main social and cultural center, properties are numerous and pricing is cheaper than District V. The elegant Andrássy Avenue offers lots of properties for investment.
Erzsébetváros – the Jewish quarter, veterinary and medical school district with a buzzing nightlife, great restaurants.
Józsefváros – an area where the government is carrying out an extensive renovation project, ideal for investments in regards to long term.
Ferencváros – the local government is also carrying out renovations in this district with a number of cafes and bars especially in Ráday Street. Major universities are in IX districts with many students from foreign countries in need of apartments to rent near the public transport services.
This district is a purposely built residential area containing many different styles of architecture, contains the WestEnd City Center shopping mall.
Read about current trends in Hungarian real estate market
The baseline scenario counts with a GDP growth of 3-4% in 2021, accelerating to 4-5% in 2022. A more optimistic scenario is based on GDP growth around 5-6% this year and also in 2022.
The outlook for 2021 is generally positive, as several ongoing transactions are expected to provide reassurance on the market in the early half of the year.
The elevated new supply and fledgling demand during the year raised the average vacancy rate in Budapest to 9.1% as of Q4 2020, up by 3.5 p.p. from the all-time record low level a year earlier.
Last year also saw the structure of demand shift back in favor of take-up, which increased by 81% y/y, pressing the share of renewals to the lowest level since 2013.
Retail rental levels had already peaked before the pandemic; however, the decline has been accelerated by the dire business environment of 2020.
The resilience of the residential real estate market is visible in stable or falling yields
across Europe as asset prices have risen, a trend reinforced by restrictions introduced by
governments to contain the spread of Covid-19 infections and minimise the economic
impact on households and business.
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