Monday 22 May 2023
Luxury real estate is constantly evolving, keeping pace with the changes in our society and the preferences of an upmarket clientèle in search of serenity and increasing levels of excellence.
A capital like no other, with the green hills of Buda separated from the urban Pest by the Danube, Budapest is a true gem. In addition to its economic and fi scal attractiveness, the city has a buzzing nightlife and is home to numerous architectural treasures dotted around its winding little streets.
MOST POPULAR NEIGHBOURHOODS
The historical area of Pest and its architectural buildings with the culmination of Andrassy Avenue and Vaci Street; Buda Hill and its modern apartments in small buildings with gardens. Properties in the 2nd, 5th, 6th, 7th, 11th, 12th and 13th districts in particular.
MOST SOUGHT-AFTER PROPERTIES
Renovated apartments ranging from 1,076 to 2,153 sq ft. Older properties also stir the interest of buyers, who can take advantage of relatively inexpensive renovations for investments returns close to +6%.
Client expectations are the same as those found in the major Western European capitals, whether in terms of the level of service, safety or health.
As a result of the pandemic, around 75% of buyers were Hungarian in 2020 and 2021. Foreigners mainly hailed from Western Europe (French, Brits, Northern Europeans) and the US. In 2022, once the restrictions linked to the pandemic were lifted, foreigners returned en masse, but the conflict in Ukraine caused a fall in the number of buyers. Potential clients seem to be waiting to see how the international situation will evolve in the coming months.with sizeable transactions in 2022.
OPPORTUNITIES AND OUTLOOK
With a 15% tax on income, 9% on corporations, 15% on dividends and tax treaties with the majority of Western European countries, Hungary has one of the most advantageous tax regimes in Europe. In addition, the construction of new housing is on the rise in Budapest. These modern residences attract buyers seeking a piedà-terre and investors. 2022 brought with it an unexpected rebound. The war in Ukraine, the energy crisis and high inflation caused prices to rise by between +17 and +20%. The local currency, the Hungarian forint (HUF) also hit an all-time low, to such an extent that all liquid assets were placed in real estate. But this monetary weakening only curbed the spectacular price rise in the very short term (from February to November 2022), with a renewed upward trend at the end of 2022.
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