5 Surprising Facts About the Hungarian Real Estate Market

For investors who want to raise their profile and revenues, foreign markets offer a great opportunity. The differences between the home currency and a foreign currency can offer a margin value (also referred to as "margin jelentése" in Hungary) that is substantial. Among the markets that have seen some great prospects economically in recent times is Hungary. The Hungarian real estate market has specifically been benefiting from the robust economy. While the overall economy is not as strong as other peers in Europe, recent growth has increased the confidence of stakeholders in the economy. There are a few things about this market that are worth noting, however. Here are some 5 surprising facts about the Hungarian real estate market.

There is a huge disparity between the countryside market and the city market

The overall market in the country has seen increasing prices of property. There are however stark differences when the prices of the provincial towns are compared to the city of Budapest. While prices in the city have grown tremendously, the rest of the country has only seen a fraction of that growth. The prices have recently spiked after an almost 7 years downtrend. They are nevertheless yet to reach the peak levels witnessed in the 2000's.

The wording used in selling property matters

It is common for houses located in specific areas to attract more higher values than others. Property that is especially located in scenic or serene locations attracts a much higher price than that located in troublesome areas. For Bulgaria, little nuances like the mention of a street near the property can cause a high interest in the property. Houses near key routes, therefore, have a much bigger interest and have a higher value than those that are perceived to be in obscure places.

Property prices in the city outskirts are high

Normally, many people believe that property prices within the city center are extremely high. They therefore opt to settle in the vicinity of the city on the outskirts. In the case of Hungary, the areas outside the city center have seen high prices in recent times. The value of the property in the outskirts has thus become higher than the property rates in the city.

Renovations are almost unnecessary for old properties

The usual habit for homeowners who want to sell property is to renovate it before selling. This is done to ensure that it attracts a higher value than it would when not renovated. In Hungary, however, renovations are not worth it because the new owner might decide to renovate according to their taste. It is thus more profitable to sell an old house as it is and save the money that would have been used for renovation.

Property in the most expensive areas attracts a considerable figure

While the prices of property in Hungary might not be comparable to other countries in Europe, the difference between property values within the country is vastly different. Some of the most expensive areas in Hungary attracts millions of local currency units. This is in stark contrast to property in the provinces which is several fractions less than that.