Why now is the right time to invest in Budapest

Over the past five years, Budapest has experienced a remarkable property boom. Budapest residential properties increased by as much as 24% on average in 2019, and the expected return on investment from buying a rental property was around 4-5%. The number of transactions was high compared to historical data, and the average time it took to sell a flat (turnover) was around 3 months in the inner districts of the city.

The resilience of the Hungarian property market is being demonstrated during the COVID-19 pandemic. So far, property prices in the capital city of Hungary have remained relatively unchanged. While rental prices dropped by 10-15% in April, they have since recovered and are expected to continue doing so in the upcoming months. As of July 10th, the Hungarian government is expected to open its borders to many of its European neighbors, and the first wave of tourists and international students is expected to arrive shortly.

While no one can foresee the future, it appears that the European Union is doing a particularly good job of slowing the rate of infection across the continent. As with every other property market around the world during such times, great opportunities arise. The relative weakening of the forint currency compared to other major currencies worldwide, due to the pandemic, resulted in lower house prices for international investors. With the full reopening of the Hungarian economy and the resumption of flights within the European Union, the forint currency is expected to strengthen soon, and a trend in house prices is also expected to resume.