Investing in Hungarian Real Estate: What You Need to Know

In recent years, Hungary's real estate market has become a prominent destination for investors seeking a combination of affordable entry and the stability of a European jurisdiction. This article aims to provide a comprehensive analysis of the country's investment appeal: from residential properties and student rentals in Budapest to villas at Lake Balaton and opportunities for preserving capital in the European Union.

The market situation is particularly interesting right now. According to Eurostat, Central Europe is experiencing a new wave of family and business migration following the pandemic: IT specialists are moving to Hungary, international companies are opening regional offices, and tourism is growing. Budapest has become one of the fastest-growing housing markets in Europe over the past ten years: prices have doubled, but remain lower than in Austria or Germany. Flexible visa regimes and affordable living costs are also factors.

Experience and an understanding of international law are crucial for supporting transactions in this market. I, Ksenia Levina, a lawyer with experience in the EU and Asia, have been advising clients on transaction structuring, developer due diligence, and KYC/AML procedures for many years.

When comparing Hungary with Austria, the difference is clear: Budapest and the resort regions offer higher returns with a low entry barrier, while Austria offers stability and predictable regulation, but with a significantly lower yield.

Hungary is located in the heart of Central Europe, at the intersection of key EU transport and logistics corridors. The country has become a platform for companies serving both Western and Eastern markets, and for investors, this means stable demand for housing from expats, students, and tourists alike.

Budapest occupies a unique position: it's not only the capital, but also a center of education and the IT sector. International universities operate here, coworking spaces and startup hubs are emerging, and tourist flow has already exceeded pre-COVID levels. Beyond the capital, regional markets remain attractive: Lake Balaton attracts buyers of resort property, Debrecen and Szeged have become university centers with high rental demand, and smaller towns near the borders with Austria and Slovakia are attractive to those who combine living in Hungary with work or business in other EU countries.

legal environment is fairly transparent: foreigners can purchase real estate directly, although local government approval is required in some cases. Compared to its neighbors, the country is competitive: Poland and the Czech Republic offer more developed economies but higher housing prices, while Romania remains cheaper but has less predictable regulations.

Numbeo claims that Hungary's main selling points are its relatively low price per square meter, its EU jurisdiction status, and a steady flow of tourists and students. A comparison with Austria reveals a distinct difference in approach: in Hungary, you can enter the market with a smaller investment and expect higher returns, while Austria is more suitable for investors who value capital preservation and minimal risk.

Hungary vs Austria

When considering Hungarian real estate investments, it's important to understand its position in the regional competition. Central and Eastern Europe has become a hotbed for capital movement, attracting both European investors seeking high returns and international buyers seeking to secure assets in an EU jurisdiction with lower entry barriers than Western Europe.

Hungary's main competitors are Poland, the Czech Republic and Romania.

Poland boasts a large domestic market and high levels of economic growth. Rental demand is strong, particularly in Warsaw and Krakow, but prices are already significantly higher than in Hungary, and yields are gradually declining.

The Czech Republic, particularly Prague, is considered one of the most stable markets in the region: low risks, high rental demand, but the entry barrier is almost comparable to Austria, which limits the pool of private investors.

Romania remains the most accessible market in the region, particularly Bucharest and the Black Sea resorts. However, the legal system is less predictable, and the infrastructure lags behind Hungary's.

Austria can also be considered a competitor: the market is transparent and stable, but the cost of entry is several times higher, and the yield is in the range of 2–3% per annum.

Thus, Hungary appears to be an intermediate link: on the one hand, it is cheaper and more profitable than the Czech Republic or Austria, and on the other, it appears more predictable and attractive to foreigners than Romania.

Over the past twenty years, the Hungarian real estate market has gone through several distinct stages, reflecting both domestic economic processes and global trends.

Since joining the European Union in 2004, Hungary has become more open and attractive to foreign investors. Buyers from Germany, Austria, and the UK, as well as investors from Russia and Israel, have actively entered the market.

Demand for housing was also stimulated domestically: Hungarian families gained access to new mortgage products, which had previously been limited. During this period, housing prices in Budapest and tourist areas (such as Lake Balaton) rose at double-digit rates.

the 2008 global marked a turning point. A sharp drop in liquidity and rising unemployment brought the real estate market to a virtual standstill. Apartment and house prices fell by an average of 20-30%, and some development projects were completely frozen. Many foreign investors abandoned the market, preferring more stable jurisdictions.

The period of stagnation lasted for several years. A new impetus only emerged in 2014-2015, when Hungary's macroeconomic situation stabilized and the country became attractive due to its relatively low prices compared to neighboring Austria and Western Europe.

The key drivers of new growth were:

• Tourism: Budapest has become one of the most popular cities for European tourists, and demand for short-term rentals has increased sharply;
• Education: Hungary's universities (including medical and technical faculties) attract students from the EU and Asia, which has created a robust student housing market;
• Foreign investment: interest was expressed by both private investors and companies looking for profitable properties for rent;
• Government policy: Tax incentives and mortgage support programs have helped increase housing affordability for local residents.

Since 2015, the market has entered a period of sustained growth. Residential prices in Budapest increased by approximately 100% over the decade (2010–2020), making the Hungarian capital one of the fastest-growing in Central and Eastern Europe. Regional growth was more modest, but even there, steady growth was observed thanks to infrastructure development and interest in resort areas.

By 2023, the Hungarian real estate market had reached its peak. Apartment prices in central Budapest had become comparable to those in second-tier Austrian cities, signaling overheating.

Against the backdrop of rising mortgage rates and declining buyer activity in 2024–2025, experts predict price stabilization with a possible correction in the secondary market, while liquid properties in the capital and near Lake Balaton retain their investment appeal.

The largest growth was recorded in the capital. Over the past decade, housing prices in Budapest have increased by approximately 100%, while in the regions, the dynamics were more moderate: +40-60% over the same period. Growth rates slowed in 2020-2023, but the market remained overheated due to high demand and limited supply. Stabilization is predicted by 2025, with a possible price correction in the existing market.

Budapest remains the central Hungarian real estate market accounting for the majority of residential transactions for both domestic and international buyers. The city attracts investors with several factors: developed infrastructure, business activity, tourist appeal, and a rich cultural heritage. Within the capital, the market is diverse: the historic center and districts along the Danube form the premium segment.

Apartment prices here and sometimes even exceed them, due to the limited supply and the prestige of the location. At the same time, the mass housing market is actively developing in residential areas – new buildings and resale apartments are in demand among young families, students, and investors looking for long-term rentals.

Budapest thus combines both the luxury and mass-market segments, offering a wide choice for buyers with different budgets.

The second major center of transactions is the Lake Balaton region , Hungary's largest resort area. Since the early 2000s, this region has consistently attracted foreign buyers, primarily Germans and Austrians, who see it as a Mediterranean experience at affordable prices.

Villas and apartments for summer vacations, as well as short-term rentals, are actively purchased here. Balaton is seen as a "resort investment" with a long-term outlook: prices are rising more slowly than in the capital, but the market remains stable thanks to a constant flow of tourists and high liquidity.

The third important destination is university towns, with Debrecen and Szeged particularly prominent. These centers of education and research provide a steady demand for rental housing from students and faculty.

Small apartments, which can easily be rented out during the school year, are particularly popular here. Investments in such properties are more pragmatic: profitability is generated by stable demand, and the risk of price declines is lower than in the overheated capital market.

close to Austria and Slovakia, play an important role in the geography of transactions They have become attractive due to the opportunity to combine lower housing prices with the benefits of working and living in neighboring countries.

Many residents of Austria and Slovakia are purchasing property here as a second home or as a base for a cross-border lifestyle. This segment has been growing particularly rapidly since 2015, when rising prices in the capital made regional real estate a more attractive alternative.

The Hungarian real estate market boasts a diverse range of formats, making it attractive to a variety of investors. Apartments represent the largest share, remaining the most liquid and sought-after asset class. Both the secondary market and a limited number of new developments are active.

The primary market is developing slowly: unlike Austria, where the construction of new complexes is institutionalized, in Hungary small projects by local developers predominate.

Villas and houses constitute a significant segment of the market especially in resort areas such as Lake Balaton. This type of housing is primarily aimed at seasonal use and short-term rentals. Many foreigners purchase homes here for personal vacations, while also considering them as long-term investments.

A special place is occupied by apartment buildings, which are particularly in demand in Budapest and university towns. These are entire buildings with apartments available for rent. This type of investment is popular among institutional and corporate investors, but is also found among private investors seeking portfolio diversification.

Finally, land for construction remains an important area. Although the acquisition process for foreigners is more complex and requires additional approvals, interest in land remains, particularly in the vicinity of Budapest and major tourist areas. This is an asset designed for the long term, driven by future urbanization and infrastructure expansion.

The composition of buyers in the Hungarian market reflects its international nature. The most active foreign investors traditionally include citizens of Germany and Austria, who have historically viewed Hungary as a convenient investment destination due to its geographic proximity, linguistic, and cultural ties.

Russian buyers also play a significant role, particularly in the premium segments of Budapest and Lake Balaton, where they view real estate as a way to preserve capital. Chinese investors are entering the market through commercial real estate and apartment buildings, while Israeli investors are actively present in the residential rental segment.

From a tenant perspective, the market is divided into several key groups. One of the most significant is made up of students, who generate stable demand in university towns and Budapest. Tourists generate a significant flow of short-term rentals, particularly in the capital and resort areas.

Finally, an important niche is occupied by expats – employees of international companies and organizations working in Hungary. Their demand is primarily focused on mid- and high-end housing in prestigious areas of Budapest, where infrastructure and transportation are well-developed.

Thus, Hungary's real estate market is multilayered and oriented toward both domestic and foreign demand. Its stability is ensured by a combination of factors: its tourist appeal, educational potential, and the country's strategic location in Central Europe.

Hungary vs Austria

The Hungarian real estate market offers investors a wide range of ownership structures and investment instruments, depending on their goals, budget, and intended use. While the purchase process is generally accessible for foreigners, there are a number of considerations that must be taken into account at each stage.

Direct ownership of an apartment or house remains one of the most popular methods Foreign citizens can purchase residential property, but this requires special permission from local authorities.

Typically, the process takes several weeks and is rarely rejected, especially for residential properties without significant strategic value. This format is particularly popular with buyers considering a home for personal use, seasonal vacations, or long-term investment.

land acquisition is more complex Hungarian law more strictly regulates land transactions: foreigners are allowed to purchase land, but approvals take significantly longer, and in some cases, restrictions are possible, especially when it comes to agricultural land. However, if permission is successfully obtained, this format opens up opportunities for the construction of residential or commercial real estate.

For investors targeting apartment buildings, commercial real estate, or large projects, the legal entity model is often used. Registering a company in Hungary significantly simplifies the transaction process, as the company acts as the buyer in its own name. This approach is also convenient for those planning to manage a portfolio of properties and minimize tax risks.

Issues of co-ownership and family law deserve special attention In Hungary, property can be purchased jointly by multiple owners, making investment more accessible for partners or family members. Prenuptial agreements and inheritance law also play a significant role: having a will or agreement in place in advance helps avoid disputes and simplifies the transfer of ownership.

Opening bank accounts are an integral part of the investment process . Hungarian banks require transparency regarding the origin of funds, and foreign investors should be prepared for additional checks and documentation. Nevertheless, the country's banking system is considered reliable and actively engages with international clients.

Comparison with Austria

The process of purchasing real estate in Hungary is generally considered fairly straightforward, although for foreigners it requires certain approvals and the mandatory involvement of a lawyer. The transaction typically begins with the signing of a preliminary contract and the payment of a deposit, which is typically around 10% of the property's value.

This step secures the buyer's intentions and reserves the property for them. Next, the main purchase and sale agreement is drawn up and certified by a lawyer, outlining all the terms of the transaction, the payment procedure, and the timeframe for the property's delivery.

Non-EU citizens require additional permission from local authorities. This is typically a formal procedure that takes four to six weeks and rarely results in refusal, unless it concerns strategic facilities.

The final stage is registering the property rights in the land registry. Once the corresponding entry is made, the buyer is recognized as the full owner, and the entire registration process takes on average one to two months.

Due diligence is a crucial part of any transaction in Hungary. The buyer and their lawyer must ensure that the seller is indeed the sole owner of the property and that there are no outstanding debts, mortgages, or tax arrears.

A reconciliation of cadastral data and the actual condition of the property is mandatory, as discrepancies sometimes occur in practice. In cases where the property is jointly owned, notarized consent from all owners is required for the sale.

Comparison with Austria

The new-build market in Hungary is much less developed than in neighboring Austria. The majority of offers are on the existing market. While off-plan transactions are possible, unlike in Austria, they are not always accompanied by a well-developed buyer protection system, such as escrow accounts. This makes due diligence particularly important.

Purchasing real estate in Hungary remotely is possible, but requires special attention to legal and organizational aspects. For a foreign investor, the key step is obtaining an acquisition permit, which is processed through local authorities and requires the submission of a package of documents confirming the source of financing and the legality of the transaction.

All stages, including property selection, due diligence, contract signing, and title registration, can be organized through a trusted representative or a local real estate agency with notary support. It's important to choose a reliable partner for remote support in advance to minimize the risk of errors and fraud.

When purchasing remotely, you also need to factor in taxes and additional expenses, including notary fees, transaction registration, and possible agency fees and property management costs. Remote property management is possible through professional rental services and management companies, especially if you plan to rent out the apartment short-term or long-term.

Thus, remote purchasing in Hungary is a viable and legal strategy, but it requires careful preparation, a reliable partnership, and a systematic approach to management and profitability planning.

Hungary's tax system is significantly more lenient than Austria's, making the market attractive to investors. The main tax on property purchases is a real estate acquisition fee of 4% of the transaction price. Additional fees include legal fees, typically around 1%, and small administrative fees, rarely exceeding a few hundred euros.

Property ownership costs are minimal. Unlike Austria, where property taxes can be substantial, in Hungary they are symbolic and vary depending on the municipality, rarely exceeding €200 per year. This makes property maintenance inexpensive, and expenses are limited primarily to utility bills.

Selling a property can also be profitable: capital gains tax is 15% of the difference between the purchase and sale price, but it gradually decreases with each year of ownership and is completely eliminated after five years. Thus, long-term investors can completely avoid the sale tax.

As for rental income, a 15% income tax rate applies. In some cases, social security contributions are added if rental activity is regular. However, even taking these payments into account, the tax burden remains moderate, especially compared to Austria, where rental income is taxed progressively, ranging from 20% to 55%.

Hungary thus benefits from a low tax burden and cheaper transaction costs, making it attractive to those seeking affordable investment options and high flexibility. Austria, on the other hand, offers a more predictable and transparent system, which is particularly appreciated by investors willing to pay for maximum legal protection and minimal risk.

Object: apartment in the center of Budapest (district VI, next to the Opera).

Area: 60 m².

Purchase price: €200,000.

Purpose: rent (long-term and short-term).

Long term rent (12 months):

• Average rent in the center of Budapest: €12/m² → €720/month.
• Income per year: €8,640.

Short-term rentals (Airbnb):

• At 65% occupancy and €60/night → ~€14,000 per year.
• (But the costs of cleaning, service, and management are higher – up to 25% of income).
• Net income: €10,500.

In Hungary, the rental tax is 15% of income + social security contribution (up to a ceiling).

Let's assume a long-term lease (for a conservative scenario):

Income: €8,640

Tax (15%): €1,296

Net income: €7,344

Historically, Budapest shows price growth of ~5-7% per year.

If the apartment is worth €250,000 in 5 years, then:

• Sale: €250,000
• Capital gains tax: 0% (if held for >5 years)
• Net profit: €39,300 (growth + rental income).

Thus, the investor receives a double effect:

• stable cash flow from rent (3.5–5% per annum),
• increase in asset value over a 5-10 year horizon.

Purchasing real estate and obtaining a residence permit. Hungary, unlike several southern European countries (such as Portugal, Greece, or Spain), does not offer a direct "golden visa" program. This means that simply purchasing an apartment or house, even one worth several hundred thousand euros, does not automatically grant residency.

However, owning real estate can serve as an indirect advantage when applying for other residency categories: it demonstrates the applicant's connection to the country, their financial solvency, and the presence of a center of interest in Hungary.

Alternative routes to obtaining a residence permit. Since real estate is not a valid basis for legalization, foreigners typically choose other channels to legalize their residence:

• Through business: opening a company in Hungary and registering your business activity. Having a real business, employees, and tax payments significantly increases your chances of obtaining a residence permit.
• Through income and financial independence: Wealthy foreigners can prove passive income (for example, from rental property or investments) and obtain residency on this basis.
• Digital nomad programs: A key tool in recent years is the White Card, which allows you to work remotely in Hungary while living in the EU. It's designed for freelancers, IT specialists, and remote employees of international companies.
• National visas: Certain residency categories may be issued for students, researchers, and family reunifications. In such cases, real estate plays a supporting role (as a guarantee of housing).

Lifestyle and quality of life. Despite the lack of a direct "golden visa," Hungary remains an attractive country for relocation.

• The cost of living is significantly lower than in Austria or Germany: rent, food, and services in Budapest are on average 20-40% cheaper.
• Medicine is more accessible than in Western Europe, and private clinics offer quality service at reasonable prices.
• The country's geographic location makes it convenient for travel: Vienna is just 2.5 hours away by train or car, and key transport corridors of Central Europe pass through Budapest.

Hungary vs Austria

The Hungarian real estate market is formed by two key rental areas:

Short-term rentals are primarily aimed at tourists. Budapest is among the top 10 European capitals for tourist overnight stays, and Lake Balaton remains a popular summer destination. Apartments in the city center or lakeside apartments can generate higher income than long-term rentals during the high season.

Long-term rentals are provided by students (in Budapest and university towns such as Debrecen and Szeged) and expats. Employees of international companies and organizations prefer housing in prestigious areas of the capital. This segment is more stable and predictable than short-term rentals, but yields lower returns.

The yield in Hungary is significantly higher than in Austria, which is explained by the lower entry price and greater demand for rentals.

Comparison with Austria

Austria is traditionally considered a more "conservative" market for rental investment:

• The yield in large cities (Vienna, Salzburg, Innsbruck) is 2–3% per annum.
• However, the rentals there are mostly long-term, with low volatility, which ensures high income predictability.
• Hungary, on the other hand, allows for 1.5-2 times higher returns, but at the expense of greater dependence on tourism and student demand.

Thus, Hungary offers higher yields and an affordable entry threshold for investors, but requires careful selection of the region and rental strategy. Austria, by contrast, offers stability and low risk, but yields are significantly more modest.

Hungary vs Austria

Budapest is the main market. Budapest is the capital and largest city of Hungary, home to the country's economic and cultural life. Real estate here is in demand for both long-term rentals and short-term rentals to tourists. The districts with the greatest liquidity are the 5th, 6th, and 7th arrondissements (the city center and surrounding areas).

High demand is driven by students, expats, and tourists. Investing in apartments in Budapest provides a stable income and relatively quick liquidity upon resale.

Lake Balaton – resort real estate. Lake Balaton is the largest lake in Central Europe and a popular tourist destination. Houses and villas are purchased here for seasonal rentals and vacations. During the high season, yields can be higher than in the capital, but off-season income declines. Resort real estate is ideal for investors focused on short-term rentals and portfolio diversification.

Debrecen, Szeged – student rentals. Debrecen and Szeged are university cities with a steady demand for student rentals. Investing in apartments near universities provides a stable flow of tenants, low competition, and a quick return on investment. Risk is limited, but liquidity is lower than in Budapest, and returns are not dependent on the tourist season.

Provincial Lifestyle. Hungary's small towns and villages attract buyers seeking a quiet life, a green environment, and country homes. Prices here are lower than in large cities, and properties often feature spacious plots. This is a suitable option for those who want to combine private living with the possibility of long-term capital growth, but rental yields are low.

The Hungarian real estate market is predominantly made up of existing homes. These apartments and houses are immediately available for rent, making them attractive to investors. The existing market offers a wide range of quality, location, and price points, allowing for a variety of investment strategies. A potential downside is the need for renovation and modernization to increase returns.

New buildings represent a smaller market share, but they offer modern layouts, energy efficiency, and minimal operating costs. New buildings are priced higher than existing properties, and the payback period can be longer. For some investors, this is justified, as new buildings and apartments attract premium renters and buyers.

Prices and examples:

• Budapest apartments: from €100k to €250k
• Houses near Lake Balaton: from €200k to €500k
• Resale properties are cheaper than new buildings, but require attention to the condition of the property.

Comparison with Austria

In Hungary, market entry is easier and the secondary market is more abundant, increasing investor flexibility. In Austria, prices are higher and construction quality is consistently high, making the market attractive for long-term capital holdings, but yields are lower.

Apartment buildings. Multi-apartment buildings offer a diversified income stream and reduce the risk of tenant vacancy. The main markets for such properties are Budapest and student cities. Management requires active oversight of tenants and maintenance, but yields are often higher than those of single-apartment buildings.

Student rentals. Investing in apartments near universities provides stable demand and a nearly constant income. Such properties are in demand regardless of economic downturns. The main drawbacks are seasonal fluctuations and relatively low resale value.

Resort properties. Properties at Lake Balaton and in Hungary's thermal spa areas are suitable for short-term rentals to tourists. The advantage is high income during peak season. The disadvantage is the need for property management and seasonal income instability.

Commercial real estate. Offices, warehouses, and retail space in Hungary offer opportunities for diversification and long-term income. They require more complex management and legal considerations, but often provide a stable rental income stream.

Land in the countryside. Land plots are relatively inexpensive and suitable for long-term investment or construction. The main advantage is the potential for appreciation. The disadvantage is low liquidity and the lack of income until the project is completed.

Comparison of strategies: Hungary vs. Austria

In Hungary, student and tourist investments are popular, as returns are higher and entry costs are lower.

In Austria, preference is given to offices and premium housing, where the market is more stable but rental yields are lower.

Before deciding to purchase real estate in Hungary, it's important to consider potential risks and disadvantages that may impact the timeframe, profitability, and ease of ownership. The main challenges relate to bureaucratic procedures, economic and political instability, and restrictions on short-term rentals, especially in tourist areas. Understanding these factors helps investors assess their prospects and make an informed decision.

Purchasing real estate in Hungary requires significant bureaucratic procedures, especially for foreign citizens. To purchase real estate, a foreigner must obtain permission from the Hungarian Ministry of Justice.

The process may include verifying funding sources, coordinating the transaction with local authorities, and preparing notarial deeds. This can take anywhere from several weeks to several months, depending on the type of property and the region

In Austria, the process is significantly simpler for EU citizens: there are virtually no restrictions on purchasing real estate, while for citizens of other countries, the procedure is also regulated, but is more transparent and predictable.

Hungary is characterized by relatively high political instability compared to Austria. Political volatility can manifest itself in changes to tax policy, rental regulations, and investment incentives. Economic instability is also associated with fluctuations in the forint against the euro, which impacts real investment returns for foreigners.

Austria, by contrast, enjoys a stable political and economic environment, with low risks of legislative changes and high predictability for investors.

Budapest has strict regulations on short-term rentals, including platforms like Airbnb. Some areas require special licenses, and tourist areas may impose quotas on the number of apartments allowed to be rented. Violating these regulations can result in fines and a ban on future rentals.

In Austria, there are fewer such restrictions, but major cities such as Vienna are also gradually introducing restrictions on short-term rentals to regulate the housing market.

Life in Hungary combines the comforts of modern infrastructure with a rich cultural and historical heritage. Cities and towns offer a well-developed public transportation network, modern healthcare services, and a wide range of amenities and recreational facilities.

The cost of living is generally lower than in neighboring Central European countries, allowing for a more free and varied lifestyle on the same income.

The lifestyle here is characterized by a relaxed pace, a combination of work and leisure, and active participation in cultural life: theaters, museums, concerts, festivals, and sporting events are available year-round.

The expat community is active and supportive, facilitating integration, and the availability of high-quality healthcare and educational institutions creates a comfortable environment for families. Overall, Hungary offers a harmonious combination of affordability, cultural richness, and a high quality of life, making it an attractive choice for permanent residence and long-term stays.

Hungary vs Austria

Hungary's unique geographical location in the heart of Europe makes it a convenient and strategic location for both investment and residence. Easy transportation access, developed infrastructure, and proximity to the EU's major economic centers make the country attractive to investors, digital nomads, and families seeking a balance between quality of life and cost.

Hungary offers high yield potential with a relatively low entry cost. Residential apartments in Budapest and popular tourist areas can generate stable rental income, particularly in the short-term rental segment, despite existing restrictions.

Commercial real estate in major cities also attracts foreign investment due to its stable demand and business development opportunities. Hungary's main advantage is the opportunity to achieve attractive returns with moderate investment, which is more difficult to achieve in more expensive and stable Central European countries.

The White Card program allows foreign citizens to legally live and work in Hungary, creating a favorable environment for remote professionals, startups, and freelancers. Hungary offers a well-developed infrastructure for online work: high-speed internet, coworking spaces, cafes with coworking areas, and a vibrant expat community, making the country attractive to those seeking a combination of low costs and the opportunity to comfortably work remotely.

Hungary offers affordable international schools and universities for families, which is essential when moving with children. A variety of cultural and sporting events, the safety of most neighborhoods, and the relatively low cost of living make the country a comfortable place to live. Furthermore, the country is actively developing its children's infrastructure, including kindergartens, sports clubs, and cultural activities.

Compared to Austria, Hungary stands out for its accessibility and high investment returns. While Austria offers the most stable economic and political environment, a high standard of living, and prestige, its cost of living and real estate is significantly higher. Hungary offers greater returns on investment with lower initial costs, but the risks are higher due to greater political and economic volatility.

For digital nomads, Hungary offers simpler and more flexible conditions thanks to its White Card program and relatively low living costs, while Austria's freelance visa programs are accessible but more expensive, and the cost of living and rent is significantly higher.

For families, Hungary attracts with its affordable educational institutions and moderate living costs, while Austria offers a high level of comfort, prestige and stability, but requires a significantly larger budget.

Hungary thus emerges as a dynamic and accessible Central European hub with potential for profitability, while Austria is a more conservative choice with guaranteed stability, a high standard of living and prestige.

Selling. Real estate liquidity depends heavily on location. In Budapest, selling a home is relatively easy due to high demand, but in less popular areas, the process can take several months.

Exposure times. The average time to sell an apartment in Hungary is 3-6 months, depending on the property's condition, location, and market conditions.

Taxes on sale. When selling real estate in Hungary, the capital gains tax is 15% for individuals (if the property has been owned for less than five years, the tax is then reduced to 0%). In Austria, the capital gains tax is 30%, but exemptions are available for long-term leases or for using the property as a primary residence.

Comparison with Austria

I am a real estate consultant with over ten years of experience in the EU market. During this time, I have been involved in a wide range of transactions, from residential to commercial properties, including working with foreign investors and complex ownership structures.

In my experience, the key to successful investment is knowledge of local legislation and the specifics of regional markets. Working in various EU countries has allowed me to formulate universal rules for property valuation, risk minimization, and profitability planning.

When choosing a property, I always conduct a comprehensive due diligence process: verifying the legal documents, ownership history, encumbrances, debts, and whether the property meets the projected income target. I recommend calculating the potential rental income, taking into account seasonality, tenant type, and property management costs, to understand the real financial prospects in advance.

In Hungary, there are various forms of ownership: individual, company, and joint ownership. Each form has its own tax implications: property tax, rental income tax, and capital gains tax. Choosing the right form of ownership allows you to optimize taxes and minimize bureaucratic complications, and I always take this into account when planning a transaction.

Investment scenarios:

• In a conservative scenario, I usually recommend buying apartments in Budapest with long-term leases – this means minimal risk, stable income, and high liquidity.
• A balanced scenario would be to invest in real estate on Lake Balaton, combining rental income with the opportunity to use the property for recreation or lifestyle investment.
• The aggressive scenario involves apartment buildings or apartments for student rentals – these offer higher returns, but require active management and a willingness to cope with fluctuations in demand.

In my opinion, the optimal strategy often involves combining two markets: the stability of Austria and the profitability of Hungary. This approach allows for both minimizing risk and achieving high returns, combining predictability and dynamism.

Hungary and Austria offer different approaches to real estate investment. Hungary is better suited for investors seeking yield, affordability, and active property management. Austria is preferred by those seeking stability, prestige, and a predictable market. Therefore, real estate in Austria is often viewed as a defensive component of a portfolio, while Hungary is seen as a more profitable option.

For a successful investment, it is important to engage legal counsel, conduct thorough due diligence, and plan an exit strategy in advance, taking into account liquidity, taxes, and the timing of the sale.

The forecast to 2030 is as follows: Hungary expects tourism growth, infrastructure development, and increased regulation of short-term rentals, creating both new opportunities and risks. Austria maintains a stable market with moderate price growth and minimal yield fluctuations.