Hungary property buying guide: how to purchase a house or apartment

Specifics of the Hungary real estate market

Hungary’s property market has low prices but is on the rise. The average price of real estate in Hungary is HUF 970,000 per 1 m², or about €2,400. Some other EU averages to compare are €3,050 in Italy and €2,900 in Spain and Portugal.

New properties in Hungary are in higher demand than historical buildings. One of the reasons for this is gas and electricity prices. The utility payment for an old-unit apartment can be twice as high as that for a new‑unit apartment of the same size. On average, utilities in Hungary cost €170 per month for an 85 m² apartment.

Third-country property owners can officially become residents of Hungary. By purchasing real estate, foreigners become eligible for a residence permit under the Hungary Golden Visa program.

How to get a Hungary residence permit by investment

Who can buy Hungary real estate: permissions and restrictions

Foreigners need to get an acquisition permit to buy real estate in Hungary. Documents for obtaining the permit, including the buyer’s passport, criminal record, and preliminary purchase and sale contract,  are submitted to the Land Registry through a lawyer accompanying the transaction. 

A permit is not required if the buyer is a citizen of an EU state, Norway, Liechtenstein, Iceland, or Switzerland. 

A local real estate attorney must help foreigners buying a home in Hungary. Only such attorneys have the right to accompany the transaction, including drawing up a contract of sale, accepting payment, and representing the buyer's interests in the Land Registry. Foreigners cannot buy property in Hungary without an attorney.

Individual cost calculation for residence by investment in Hungary

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Overview of property types on the Hungarian real estate market

Hungary offers a wide range of property types, each with unique pricing, demand, and characteristics.

City apartments, especially in Budapest, are in high demand due to their proximity to cultural and economic centres. Prices in central Budapest range from €3,000 to 5,000 per square metre, with higher prices for premium or newly renovated buildings. Demand remains strong, particularly among foreign buyers and expats.

Rural houses offer a quieter lifestyle at significantly lower prices, starting from around €500 to 1,200 per square metre. These homes attract both local buyers and foreign investors seeking affordable living outside the cities.

Luxury villas, especially in areas like Buda Hills and Lake Balaton, appeal to wealthy investors. Prices start at €800,000, depending on location, size, and amenities. Foreign buyers often purchase these properties as second homes or holiday residences, contributing to the strong demand for premium properties in Hungary's prestigious areas.

New developments and condominiums are mainly built in suburban areas of Budapest and other big cities. They offer modern amenities which attract young professionals, expats, and investors. Prices range between €2,500 and 4,000 per square metre. Demand for new developments is rising, particularly in areas with good transport links to city centres.

Renovation projects are often options of choice for investors seeking higher returns and wishing to purchase older buildings that require renovation. Prices for such properties start at around €1,500 per square metre. The restoration market is popular with both local and foreign investors.

Property for investment in Hungary

Hungary, Budapest

€642,000+

Classic three-bedroom apartment, Ujbuda, Budapest

150 m²

3

3

Hungary, Budapest

€673,000+

Modern apartments with four bedrooms, Ferencvaros, Budapest

127 m²

4

4

Hungary, Budapest

€593,000 — €946,000

Stylish apartments with city view, First District, Budapest

75 m²

2—3

2—3

3 pros of buying a Hungary property

1. Real estate in Hungary is a liquid asset. Hungary’s real estate market, especially in Budapest, is actively growing and features high liquidity. Many foreigners invest in property for capital preservation and gains. Quarterly prices have been rising by an average of 3.4%. For example, a 100 m² apartment that cost €111,000 five years ago can now be sold for €206,000.

2. Property buyers can obtain residence permits. Hungary offers foreign real estate investors immigration benefits. Individuals investing at least €500,000 in residential real estate can obtain a 10-year Golden Visa, which is subject to renewal.

3. Low property taxes and fees. Hungary has relatively low property taxes and favourable transaction costs. The stamp duty, paid at the property purchase, is 4% for properties under €1 million and 2% for amounts exceeding that threshold. In certain cases, property owners can reduce fees or get tax refunds on acquired real estate.

Best Hungary areas for buying property

Budapest is considered the top location for property investment in Hungary. Foreigners frequently buy real estate in the capital, although prices are 2—4 times higher than in other regions. The average price is €2,200 per 1 m² for secondary property and €2,900 per 1 m² for new property.

Districts I, II, V, and XII of Budapest have the highest real estate prices, averaging more than HUF 1 million (€2,600) per 1 m². District II is the most expensive, with prices reaching €3,200 per 1 m².

Properties in Districts V, VI, and VII are often purchased as rental investments, especially for short-term rentals. However, not every owner is allowed to rent properties out; rules differ depending on the district. Authorities of District VI are planning to impose a ban on short‑term rental as of 2026.

For comfortable living, Districts XI, XIII, and XIV are popular due to lower prices, proximity to the city centre, and well-developed infrastructure, including parks, schools, and shops.

Small towns and rural areas. Some foreigners, particularly digital nomads, prefer buying real estate in small towns or rural areas, where commuting is less essential.

Property prices outside Budapest are generally lower, starting at €1,600 per 1 m² in regional centres like Veszprém and Debrecen.

Average real estate prices in some Hungarian cities

Potential pitfalls of purchasing real estate in Hungary

Price fluctuations. Hungary is expected to see an increased demand for real estate from foreign investors participating in the Hungary Golden Visa program. This demand could drive up property prices. Additionally, new construction projects will likely become more expensive due to the use of higher-cost materials needed to meet updated energy efficiency standards.

Potential renovation expenses. Budapest is popular among tourists and people relocating from other parts of the country, boosting rental demand and prices. However, many properties, especially those with historical significance, are subject to strict renovation and preservation rules. These regulations can substantially increase renovation costs. Investors working with a lawyer can plan ahead to select properties that align with their budgets.

Difficulties during the purchase deal due to language barrier. Only 25% of Hungary’s population speaks English, which can create challenges when navigating the real estate market, understanding legal documents, or interacting with local authorities. Most transactions and official documents must be translated into Hungarian, adding to the cost and complexity of property purchases.

Investing through a company with power of attorney is recommended. This approach minimises confusion and saves time by having professionals handle transactions on the investor’s behalf.

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Property taxes and maintenance expenses in Hungary

When buying real estate in Hungary, purchasers pay transfer tax and administrative fees, along with costs for lawyers, notaries, and translators.

Transfer of ownership tax is charged at the 4% rate of the property value.This rule applies to transactions up to HUF 1 billion, or €2.6 million. For more expensive properties, an additional 2% is charged on the amount exceeding this threshold. The tax must be paid within 90 days of purchase.

For new buildings, the buyer pays a 27% VAT, usually included in the price. The reduced 5% VAT applies until the end of 2024.

Administrative fees include:

• up to €200 — for a property acquisition permit;
• €60 — for a veto on real estate transactions;
• €30 — for a Land Registry fee; 
• €22 — for a certificate of property ownership.

Legal, notary, and realtor fees typically add up to 5% of the property value.

Total additional costs when buying a property are approximately 10% of its value. For example, when purchasing an apartment for €175,000, the buyer will spend around €192,500, including taxes and fees.

Fixed expenses for property owners in Hungary include annual property tax, utility costs, and insurance.

The annual property tax amount depends on the municipality, with a maximum rate of around 3% of the property's cadastral value or approximately €1 per 1 m² annually.

Utility bills vary based on the property size, energy efficiency, and resource consumption. For apartments larger than 85 m², monthly bills range between €100 and €230. Utility bills are paid monthly or quarterly.

Property insurance in Hungary is voluntary unless the property is mortgaged, in which case insurance is mandatory.

Mortgage on Hungary real estate: who can take it out 

Only residents of EU countries can apply for a home mortgage in Hungary. 

Mortgage loans are available for up to 70% of the property’s market value, with maturity terms ranging from 1 to 35 years.

Mortgage interest rates depend on the base rate set by the Hungarian National Bank, the borrower's financial situation, the property's location, and the loan currency — that is, it will differ for dollar, euro, or forint loans. In Q3 2024, the base rate is 6.5%, and mortgage rates range from around 7% to 11% per annum.

A non-resident can buy property using only their own funds. Homeowners can obtain a Hungary residence permit by participating in the Hungary Golden Visa program.

Buying property in Hungary: summed up

1. Foreigners purchase real estate in Hungary to preserve and increase their capital and obtain a residence permit in an EU country.
2. A Hungary residence permit is available to investors who buy property worth at least €500,000. The permit is valid for 10 years and applies to the investor and their family.
3. A local lawyer must accompany the purchase process, as only a lawyer can close the real estate contract, obtain the acquisition permit from the Land Registry, and register the property.
4. Additional expenses amount to about 10% of the transaction value, covering taxes, administrative fees, and lawyer, notary, and translator fees.
5. Only foreigners with a residence permit in an EU country can apply for a mortgage in Hungary.

Frequently Asked Questions