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Hungary has been in the news recently because of the refugee crisis. However, don’t allow the images of refugees rushing into Hungary to cloud your judgment about the property market in that country. Indeed, the buying and selling property trends in Hungary for 2017 couldn’t have been better.
The refugee crisis has had no impact on tourism in Hungary, which is one of the fastest growing sectors of its economy, or on the property markets, which are doing pretty well. The residential property market in the country has been surging, having recovered from the economic crisis of 2008.
The period from 2008 to 2013 wasn’t a good one for the property market in Hungary. The number of transactions had come down by 50 percent and people put off buying property for financial reasons.
Now, things are a lot different as the economy is on the up and people have benefitted by a much improved employment situation and higher disposable incomes. So there is a lot of confidence in the real estate market in Hungary.
Property has become the favoured means of investment, with rental yields of around 9 percent and low interest rates. So, most people in Hungary see the value of buying an extra apartment in order to rent it out for an excellent passive income.
It’s no surprise then that in Budapest, the capital of Hungary, some of the areas have witnessed rise in home prices of 20 percent or more over the past year.
The city of Budapest remains still inexpensive for foreign investors, compared to other places in Europe, such as Madrid or Paris. Many cash rich overseas buyers see the value of investing in Hungary.
The quality of life here is very good, especially for freelancers and for those who own online business. The internet in Hungary is very fast and reliable, as is the infrastructure.
Most of the cash rich overseas buyers who are investing in properties in Hungary are from Russia and China, closely followed by Egypt, Ukraine and Israel.
In fact, 50 percent of the high net-worth foreign buyers in Hungary are from Russia. About 25 percent are from China. There are a number of buyers from Australia, Sweden and Norway. A lot of Americans have also moved to Hungary and have purchased apartments here.
Real estate agents have observed an increase in interest from buyers from Germany, Britain and Italy as well. But the biggest buyers of properties here are the Hungarian expats who have lived abroad for a number of years and are now coming back excited by the wonderful business opportunities and the better quality of life on offer in Hungary.
Hungary is a member of the European Union and this is one of the factors behind the rush to buy properties in Hungary online. A number of cash rich overseas buyers from non-EU nations such as China have been attracted by the promise of residency permits to those who make a minimum bond purchase of €250,000. They can get a permanent residency in the country in just 6 months, which is a lot faster than is possible in other EU nations.
Contact us today to buy or sell property in Hungary fast in 2017.