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1024 Budapest Hungary

Attorney's phone number Tel.: +36 1 316 9233
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Property and mortgage market data, 18.01 – More than a third of Budapest clients signed contracts for over HUF 20 million last year. Between September and December, for example, their share was 42%, which reflects an increase of 10 percentage points in 2021. The number of applications in this value range has increased steadily from quarter to quarter, to a lesser extent in the East and to a greater extent in the West. However, the HUF 10-15 million category remained the most popular throughout the year in both rural regions.

The majority of customers opted for a 20-year term: while in the country more than half of the applicants (52% and 54% in the East and in the West, respectively) went for this option, its share was 35% in Budapest. The second most popular choice was a term of 25 years, followed by the 10-year alternative. At the end of last year there were almost no mortgage applicants who had signed a mortgage for less than 5 years. The share of loans with fixed interest rates for at least 10 years showed an increasing trend throughout the year, ending at 87% in Budapest, 91% in the East and 80% in the West in 2021.

Project to alleviate Budapest housing crisis, 27.08.21 – Budapest Housing Agency may start its operation as soon as in 2022 to increase the pool of council properties available for rent and alleviate the housing crisis of the capital. The project is jointly run by the Municipality of Budapest, the Utcáról Lakásba Egyesület and Városkutatás Kft. with the help of international partners like the Municipal Institute of Housing and Renovation in Barcelona and Habitat for Humanity Poland. At first, the Agency would expand the pool of council housing by private rental properties. Apart from the approximately 3700 vacant municipal and district council apartments there are many unused private residential properties in Budapest. These would be rented by the Agency below market price from willing owners who would be exempt from personal income tax in return and would also be freed from the expenses and risks of renting a property. At a later stage the project would include vacant council homes, too, and, provided that the Agency can drum up EU or government funding, it would buy or construct residential units to expand the affordable pool of council housing of the capital.

Property prices to decrease in 2021, 04.12. – For the next twelve months experts expect to see a residential property price decrease of 3-4% on average in Budapest. With the exception of the green belt of Buda and of detached houses market expectations have changed for the worse, i.e. market players expect that oversupply will increase in the future. In the country, however, the outlook has improved a little. In the Eastern part of the country two of three experts queried expect to see stagnation; the overall forecast promises a 3% price decrease. In the Western part of the country, on the other hand, 72% and 22% of property experts expect stagnating and decreasing prices, respectively. According to the overall prognosis the price decrease will be a mere 2%. As far as property rental fees are concerned 57% of experts say there will be a decrease, 36% expect stagnation and a mere 7% believes rental fees will increase in 2021. The expected decrease (5%) is smaller than  before.

Only a few are granted social housing in Budapest, 29. September 2018 – According to data collected by an NGO only 5 per cent of all residential properties in Budapest are owned by one of the local governments or by the Metropolitan Local Government of Budapest. The national average is around 2 per cent while back in 1989, at the time of the change of the political system, 50 per cent of all apartments were owned by the municipalities. The percentage of residential apartments owned by the district local government is the highest in Districts 1, 8, 9, and 13. The largest number of apartments owned by the local government are in Districts 3, 8, 9, and 13.

There are at least 2500 vacant social housing apartments in Budapest. The majority have a bathroom and a lavatory, some have a bathroom only (without a lavatory), or neither a bathroom nor a lavatory, while some are termed as “emergency housing” suitable for temporary purposes only. According to the information supplied by the local governments at least 20 per cent of these apartments are in a habitable condition, i.e. there are at least 500 vacant social housing apartments.

Last year at least 346 apartments were sold by district local governments in Budapest and only as few as 31 were purchased or built. In contrast, at least 6700 families applied for social housing to one of the district local governments of the Hungarian capital.

The most popular apartment types in Hungary, 28. September 2018 – The residential property boom continues in Hungary. In the second half of the year demand was even higher than in the first, especially for apartments with their own boiler heating. On a year-on-year basis, demand for each apartment advertised grew by 12, 15 and 24 per cent in June, July and August, respectively, followed by a whopping 41 per cent increase in September. This spectacular figure can partly be explained by the fact that on account of expected tightening of credit terms on residential properties and of the potential increase of the preferential VAT on apartments after the end of 2019 many buyers are keen to fast-track their purchase.
As far as heating fuels are concerned, natural gas is the most popular. The popularity of apartments with their own boiler heating is above average: 32 per cent of potential buyers prefer this type of heating because it is generally believed to be the most economical. Gas-fuelled wall heaters are also popular because they form the most frequent type of heating in studio apartments. The high proportion of district heating is a direct consequence of the popularity of precast concrete high rise apartment blocks.

Residential Property Market Slowdown, 04.05.2017 – According to the estimate of a major property agency a total of 10.6 thousand apartments changed owners in April, 16 per cent less than a year ago. Poor weather and the Easter holidays were bad on the property market which, following the boom in March, closed with significantly more modest numbers in April. That said, 10,575 transactions are still one of the highest figure since last summer though, despite being 16 per cent less than a year ago, the survey says. According to the agency’s estimate 40,175 properties were sold in the first four months of the year, 13 per cent less than the 46,000 transactions recorded in the same period of the previous year.