The Hungarian high-end real estate market is radically changing
The Hungarian premium real estate market is changing: the rate of foreign investors in Budapest is decreasing, but they are still very active around Lake Balaton. Here is the analysis of Duna House, a Hungarian real estate agency. They say that more and more English, Dutch and Belgians would like to buy real estate in Hungary, which is a new trend.
Duna House told MTI, the Hungarian news agency, that demand was growing for houses and apartments with the most modern technical solutions. Meanwhile, fewer people would like to buy a property only in the premium category due to its size but in need of an urgent overhaul. Their analysis indicates that owners of such apartments should consider renting their apartments in a rapidly changing economic environment.
Károly Benedikt, the main analyst and public relations expert of Maison Duna, said that the Hungarian luxury real estate market is moving on a wide palette. There are modern, newly built and modernized apartments less than five years old, equipped with solar panels, state-of-the-art technical solutions and heat pumps. Also, some houses are in the premium category due to their excellent location and size, but they have outdated technical equipment.
Duna House reported growing demand for high-end apartments in Budapest, the suburbs and around Lake Balaton. They expect an increase in supply in this sector. But selling unmodernized apartments will become more difficult, Duna House added.
Some real estate owners in this category decide to rent out their apartments, which can generate an acceptable profit. For example, an apartment worth 250 million HUF can be rented for 1 million HUF/month.
During the pandemic, the number of potential foreign buyers has decreased significantly in Budapest and in the conurbation’s high-end real estate market. Currently, most Hungarians would like to buy apartments in this category. Meanwhile, Lake Balaton remained popular with German, Swiss and increasingly English, Belgian and Dutch shoppers. Around Lake Balaton, the demand for 3-4 room houses and apartments is still high.