Hungary has been making headlines with its residency bond scheme for several years now, and the government is now launching a new scheme aimed at non-EU and non-EEA citizens. This new „guest investor“ scheme will grant these individuals a ten-year residence permit in exchange for a donation to a property or trust, as well as for purchasing real estate. The scheme is set to come into effect on 1 July, following the local and European elections.
To gain insight into the current state of real estate purchases by non-EU citizens in Hungary, we turned to analysts from real estate brokers Ingatlan.com and Duna House. According to data from the Prime Minister’s Office, the number of applications from foreigners looking to buy property in Hungary increased by 18 percent in 2023 compared to the previous year. While this is the highest number since the onset of the Covid-19 pandemic, it still falls below the figures from 2018 and 2019.
Chinese and Russian nationals continue to be the most active buyers in the Hungarian real estate market. In 2023, Chinese nationals purchased 647 properties, while Russians bought 223. However, recent trends show a shift in activity, with Chinese buyers purchasing 17 percent fewer properties compared to the previous year, while Russian buyers increased their purchases by 16 percent.
The war in Ukraine has had a significant impact on the real estate market, particularly for Russian buyers. The interest from Russian buyers has decreased by around 10 percent, with many facing challenges such as sanctions and financial restrictions. Despite these obstacles, some Russian buyers are still investing in luxury properties for investment purposes.
On the other hand, Chinese buyers are also showing a decline in interest in purchasing homes for personal use. Most Chinese buyers are now focusing on investment properties, typically in the range of HUF 80-100 million. Foreign buyers often rely on intermediaries to navigate the Hungarian real estate market, with many agencies now offering services in Russian and Chinese languages.
Data from Ingatlan.com reveals that Russian buyers are more active in browsing the market compared to Chinese buyers. In 2023, there were significantly more inquiries from Russian citizens interested in purchasing property in Hungary. Other nationalities, such as Israelis, Ukrainians, and Turks, also show interest in the Hungarian real estate market.
Overall, the Hungarian real estate market continues to attract foreign buyers, with the new „guest investor“ scheme expected to further boost international interest in the country’s property market. As the scheme comes into effect in July, it will be interesting to see how it impacts the dynamics of real estate purchases by non-EU and non-EEA citizens in Hungary.