Real estate in Hungary is getting more expensive, but it still remains one of the most affordable compared to other EU countries. From our guide, you will learn how the situation is with sales volumes and prices on the market, how to buy real estate in Hungary step by step, and what additional costs you should expect.
Foreigners can buy real estate in Hungary, with the exception of agricultural land and architectural monuments. But to make such a purchase, it is necessary to obtain permission from the Land Committee, and through lawyers accompanying the transaction. But don’t be scared: This is rather a formal step, since they can refuse only because they have a criminal record in Hungary.
Citizens of Hungary do not need to obtain a permit; citizens of EU countries, as well as Norway, Liechtenstein, Iceland and Switzerland; citizens of any countries to whom real estate is inherited.
Also, such a permit is not required if the purchase is made for a legal entity.
Sales volumes in the Hungarian real estate market
According to the Central Statistical Office of Hungary, 89,965 residential properties were sold by the end of 2023 (this includes apartments, single-family houses, townhouses) — this is 34.8% less than in 2022.
Among the regions of Hungary, the largest sales volumes were traditionally observed in the capital of the country — Budapest, where almost 21 thousand housing units were sold. This is the lowest observed rate since 2007. The least housing was sold in the Pest region — 6591.
By the end of 2023, the share of the secondary market in the Hungarian residential real estate market was 96%, and the primary market was 4%. A total of 3,431 residential properties were sold on the primary market, of which 49% were sold in Budapest. Sales volumes in the primary market in 2023 fell by almost 3 times, compared to 2022, when 10,273 objects were sold in the primary market.
The Central Statistical Office of Hungary has not yet published data on the number of homes sold in the 1st and 2nd quarters of 2024, however, the National Bank of Hungary in its housing market report for May 2024 reports the following: in the 1st quarter of 2024, the number of sales nationally increased by 30% compared to the 1st quarter of 2023 (at that time, 24,139 residential properties were sold in Hungary). The National Bank of the country also reports on the growth of demand.
According to the National Bank, the increase in sales volumes was accompanied by a revival in housing lending: for example, in January-March 2024, the number of housing loan agreements concluded was twice as much as a year earlier. Such lending volumes became possible due to the following factors: deflation in the country, lower interest rates on loans, and the resumption of subsidizing housing construction.
The growth rate of housing prices
Hungary maintains the highest rate of house price growth among the entire European Union: since 2015, house prices in the country have increased by more than 2.7 times while prices in neighboring countries increased by an average of 1.7 times.
The most expensive real estate is in the capital. According to the results of the 4th quarter of 2023, the average price per square meter in the primary market was set at 3,562 EUR/sq.m, which is 19% more than in the previous period. In the secondary market, one square meter cost 2,434 EUR/sq.m, which is similar to the 3rd quarter of 2023. In the 4th quarter of 2023, apartment prices in the primary market were on average 46% more expensive than in the secondary market.
Single-family houses, townhouses, apartments in residential complexes are also popular in the capital’s secondary housing market. The dynamics of price changes for these types of housing is presented below.
The Central Statistical Office has not yet published the average prices for the purchase and sale of housing in the first 1-2 quarters of 2024, however, given that the volume of housing loans has increased in the country and the overall economic situation has improved, it can be assumed that prices will rise. The price increase is also confirmed by the housing market price index, according to preliminary data for the 1st quarter of 2024, prices in the primary market increased by 3% compared to the 4th quarter of 2023, prices in the secondary market increased by 5.3%.
Depending on the region, housing prices can vary significantly. Below is a table with average prices for residential real estate by region by type of housing on the secondary market following the results of the 4th quarter of 2023.
Housing prices by region, depending on the type of housing, EUR/sq.m:
| Budapest | Pest | The Central Danube region | The Western Danube Region | South-Danube region | Northern Hungary | North Alfeld | South Alfeld | |
|---|---|---|---|---|---|---|---|---|
| Single family house, townhouse | 1793 | 903 | 701 | 625 | 369 | 322 | 338 | 345 |
| Apartment in a condominium | 2434 | 1795 | 1371 | 1429 | 1343 | 942 | 1295 | 1212 |
| Apartment in a residential complex | 1942 | – | 1295 | 1395 | 1227 | 822 | 1298 | 1057 |
| On average | 2293 | 1204 | 1060 | 997 | 707 | 550 | 612 | 631 |
Housing prices by region, depending on the area, EUR/sq.m:
| Pest | The Central Danube region | The Western Danube Region | South-Danube region | Northern Hungary | North Alfeld | South Alfeld | |
|---|---|---|---|---|---|---|---|
| District centers | – | 1476 | 1403 | 1214 | 929 | 1387 | 1264 |
| Cities | 1387 | 1089 | 1170 | 981 | 552 | 484 | 531 |
| Villages | 748 | 594 | 539 | 270 | 256 | 207 | 215 |
| On average | 1204 | 1060 | 997 | 707 | 550 | 612 | 631 |
Based on the report of the National Bank of Hungary on the residential real estate market in May 2024, we can say that the market revived at the beginning of the year. An excellent help for this was the improvement of the economic situation in the country, the reduction of interest rates and the resumption of subsidizing housing construction. It can be expected that in the coming months, market activity will only grow and, in general, 2024 will be much more productive than 2023.
From the point of view of investments, the Hungarian residential real estate market may be attractive for those who are ready for long-term investments. It is worth noting that housing prices in Hungary has one of the lowest prices among the entire European Union, and Budapest is one of the cheapest capitals in the EU.
“The market has barely budged.” The current situation in the Hungarian real estate market
Related expenses when buying real estate in Hungary
When buying a property in Hungary, you should count on additional costs, which will amount to about 10% of the cost of the object. These are the items they consist of:
- The tax on the transfer of ownership. It is equal to 4% of the value of the property if its price does not exceed € 2.6 million, and 2% if the property is more expensive. This tax is paid within 90 days after the conclusion of the transaction.
- VAT for buyers of new buildings. It is 27% and is usually already included in the price of the object.
- Administrative fees: for obtaining a permit to purchase real estate — from €170 to €200; for vetoing real estate transactions — €60; €3O is an extract from the cadastral register; €22 is the passport of the landlord.
- The fees of lawyers, realtors and notaries — usually they amount to no more than 5% of the cost of the object.
Buying real estate in Hungary by steps
So, what do you need to do to buy a property in Hungary:
- Contact the lawyers. As it turned out, without this step, foreigners will not be able to buy real estate in Hungary. Only lawyers have the right to register a purchase agreement, obtain a purchase permit and a passport of the owner of the property.
- Select and reserve an object. Viewing can be organized both in a personal format and remotely. Then you need to send an application to the seller and pay 1% of the total amount as a deposit — this way you book the desired object.
- Check the object. A lawyer is responsible for legal verification — he checks the title, as well as the presence of debts and other encumbrances.
- Sign a preliminary agreement and make an advance payment. The lawyer draws up a preliminary purchase and sale agreement in Hungarian (an interpreter may participate in the process at the request of the parties). This document specifies all the details of the transaction: the technical characteristics of the object, the amount, the address, the responsibility of the parties, and so on. Upon signing, the buyer pays an advance payment in the amount of 10-15% of the value of the object (in case the buyer refuses the transaction, this amount will not be refunded to him).
- Get permission to purchase.Next, the lawyers make a request to the Hungarian Land Committee for a purchase permit. During this period, the agency vetoes any operations of the owner with the selected property.
- Pay for the object and close the deal. After obtaining a permit, you need to conclude a basic purchase and sale agreement. Then the buyer transfers the remaining amount to the seller (both cash and non-cash payment are suitable).
- Register the ownership right. After the successful completion of the transaction, the lawyer notifies the land registry. The point in this process is the change of the name of the owner on the object’s card.
Frequently Asked questions about the real estate market in Hungary
Can foreigners buy real estate in Hungary?
Yes, foreigners can buy real estate in Hungary, with the exception of agricultural land and architectural monuments. However, it is necessary to obtain permission from the Land Committee.
Do EU citizens need a permit to purchase real estate?
No, citizens of EU countries, as well as Norway, Liechtenstein, Iceland and Switzerland do not need to obtain a special permit.
Where is the most expensive property in Hungary?
The most expensive real estate is located in Budapest, the capital of the country.
How much does a square meter of housing cost in Budapest?
According to data at the end of 2023, the average price per square meter in the primary market in Budapest was 3562 EUR/sq.m, in the secondary market — 2434 EUR/sq.m.
How much have property prices increased in Hungary in recent years?
Since 2015, housing prices in Hungary has grown by more than 2.7 times, which is the highest rate in the European Union.
What additional costs should be considered when buying a property?
Additional costs amount to about 10% of the cost of the property and include tax on the transfer of ownership, administrative fees, fees of lawyers, realtors and notaries.
What is the process of buying a property in Hungary?
The process includes the selection of an object, verification, conclusion of a preliminary agreement, obtaining a purchase permit, payment and registration of ownership. The whole process is described in detail in the article.
Do I need a lawyer to buy real estate in Hungary?
Yes, the participation of a lawyer is mandatory for foreign buyers. Only lawyers can register the purchase and sale agreement and obtain the necessary permits.
Author
Roman Tomashevich Analyst
I show the situation on the real estate market in graphs and figures.
Co-author
Yulia Yanukovych Editor-in-Chief
I am responsible for the work of the editorial office. I write expert interviews and guides.
English 
Russian 
German 
Polish