The real estate market in Budapest continues to attract international buyers in 2024, driven by an appealing golden visa program that grants guest investor residence permits for properties worth €500,000 or more. Known as a safe and welcoming city, Budapest has become a hotspot for property buyers from around the world. In this article, we explore the current market trends of 2024 and share our predictions for 2025.
What are the benefits of investing in Hungary’s real estate market?
Before discussing Budapest’s real estate market in detail, let’s look at why more and more international buyers choose to invest in Hungarian properties each year.
Easy, low-bureaucracy process
As explained in our guide to real estate investment in Hungary, the purchasing process is quick, simple, and accessible for all foreign buyers. Hungary also has a favorable tax environment compared to many European countries. VAT on newly built properties is just 5%, and second-hand apartments are VAT-exempt. The wealth transfer tax is 4% of the property’s market value, dropping to 2% for amounts over HUF 1 billion, with a cap of HUF 200 million.
Stable legal and economic environment
Hungary, a member of the European Union and the Schengen Area, provides a stable and welcoming legal and economic setting for international investors. The Hungarian Central Statistical Office (KSH) reports that the number of foreign real estate buyers has risen by 36% since 2020. Non-EU buyers make up 3% of all transactions in Hungary, with Budapest being the top choice among them.
Residency permit options for international buyers
Through Hungary’s guest investor program, international buyers can obtain a residency permit by purchasing residential property worth at least EUR 500,000. The property must be free of any claims, non-contested, and solely for residential use. Properties can only be acquired from January 1, 2025, with a five-year holding period required before selling or placing liens on the property. This investment can be made by the investor or jointly with immediate family members, such as a spouse or minor children.