An Attractive Market
Any foreigner can buy property in Budapest, and the government offers support for overseas buyers. Notably, foreign investors can acquire a Residency-by-Investment Visa for themselves and their family members by either investing 155,000 EUR in real estate or establishing a company in the country with provides services or trades with goods.
As Hungary is a full member of the EU, visa holders have access to all 27 countries within the Schengen Area. Those that invest in real estate can acquire a residence permit lasting 5 years, whilst those that establish a company can remain in the country for up to 3 years. After this initial period, the permit can then be renewed.
The minimum investment threshold for the visa is one of the lowest in Europe. Moreover, the corporate tax rate on profits is just 9% which is the lowest rate in the European Union.
With this, Budapest is fast becoming one of the hottest tickets for property buyers from across the globe.
A Captivating City
Home to striking architecture contrasted against the backdrop of the Buda Hills, Hungary’s capital is undoubtedly one of the most beautiful cities in Europe.
People come here from all over the world for the food, the nightlife, the spas, and the culture. A visit to the ballet or an afternoon spent dipping in and out of the city’s numerous galleries are just a couple of the unique cultural experiences on offer in Budapest.
The greener, quieter Buda offers a more pleasant and easy-going way of life, whilst the bustling Pest presents more commercial appeal. Where you choose to buy property will depend on your motivations, but both sides of the river present a prime location for investment.
An Ideal Climate
Budapest offers a generally mild climate and temperatures are rarely uncomfortable. Because of this, it makes for the ultimate year-round destination for travellers and expats alike.
As typical in a Mediterranean climate, pleasant sunny days tend to start around March and continue throughout the summer. Early autumn tends to be an incredibly popular time to visit Budapest due to pleasant temperatures ranging between 19°C and 24°C.
Connectivity
Hungary’s strategic location in Central Europe makes it very accessible from a wide range of destinations.
Budapest Ferenc Liszt International is one of the most visited airports in the country, supporting flights from airlines including Ryanair, BA, Air China, Air France, Emirates, and many other international airlines.
Train travel in Hungary is comfortable, safe, affordable and accessible from many European cities. Direct international trains travel from Budapest to locations including Munich, Prague, Vienna and Warsaw.
Prime City Break Destination
Hungary’s tourism industry is booming, with visitor numbers on a steep upward climb. In 2022, over 14 million guests spent nearly 40 million nights in the country, reflecting a 40% increase from the previous year.
Almost 4 million of Hungary’s tourists visited Budapest, making it the country’s most popular destination—and 82% of all visitors to Budapest were from abroad.
Budapest ranked 5th in Holidu’s Must-Visit European Cities for 2022, with 32,500 searches per month on the popular holiday rental website. And while the tourism market is already strong in Budapest, there is a sense that travellers are still only really beginning to discover the city.
Strong House Price Growth
Capital appreciation in Hungary has been significant in recent years. According to CEIC data, house prices jumped 23% year-on-year in September 2022, following a record-breaking increase of 24.3% in the previous quarter.
The value of newly-built apartments in Budapest has increased by over 30% in the last couple of years, yet prices remain very affordable compared to other European capitals. Newly-built homes in the city centre of Budapest cost 5,700 EUR/sqm, compared to the more pricey Vienna (12,000 EURO/sqm), Berlin (16,000 EURO/sqm), Frankfurt (15,000 EURO/sqm) and Prague (8,000 EURO/sqm).
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