Briefly about the state of the Hungarian real estate market

According to the Hungarian Central Statistical Office, home sales in Hungary in 2023 were down by 25% compared to the previous year. Although sales had been declining throughout the year, they began to rise in the fourth quarter. Overall, housing prices in 2023 were 5.8% higher than the previous year.

Prices for second-hand homes increased by 5.0%, while new homes saw an 11.5% rise, both slower than in past years.

Hungary’s real estate market is seeing a significant surge in demand for residential properties, fuelled by growing urbanisation and the recently introduced Golden Visa. In 2024 and 2025, Hungary is expected to experience further price growth driven by increased investor interest.

How to buy property in Hungary as a foreigner

The process of purchasing property in Hungary for foreigners takes 2 to 3 months.

  • Investors outline their real estate preferences based on factors such as cost, area, location, and necessary infrastructure.

    Real estate specialists then curate a selection of residential properties that meet those criteria, ensuring they also comply with the requirements for obtaining a residence permit.

  • Lawyers arrange property viewings tailored to your convenience. Alternatively, they provide comprehensive remote viewings with detailed photo and video reports.

  • Lawyers thoroughly verify the legal status of the selected property and the credentials of the owner or developer.

    After the property is chosen, a preliminary agreement is drafted. It outlines the property’s technical specifications, address, transaction amount, responsibilities of both parties, and the ownership transfer process.

    The buyer is then required to make an advance payment of 10% of the property’s cost. This advance payment is non-refundable if the buyer decides to withdraw from the transaction.

  • Based on the preliminary agreement, lawyers secure the necessary permission to purchase the real estate. This process typically takes 2 to 4 weeks.

    During this period, the Hungarian Land Registry restricts any owner transactions involving the selected property.

  • Once permission to purchase is granted, the main purchase and sale agreement is finalised. The buyer then transfers the remaining balance to the seller.

  • To finalise the transaction, a property owner’s passport must be obtained. A lawyer from the Land Registry secures this document.

    The property owner’s passport is essential for applying for a residence permit in Hungary. 

  • Real estate buyers must pay a stamp duty of 4% of the property’s value within 90 days of the purchase.