Hungary has experienced a major rival in its economy since 2013, which accelerated in 2014 and in 2015, things loon very bright in the European nation. It does seem that the country has finally recovered from the economic crisis that engulfed much of Europe.
So, if you’re looking to sell property in Hungary, you will be enthused by the very positive macro-economic indicators in the country that signal a revival of the so far dormant real estate investment activity.
Benjamin Perez-Ellischewitz, who is the CEO of Capital Markets Hungary, says: “We have registered as much volume in the first half of 2023 as we recorded for the entire 2022. The substantial pipeline of deals set to close in Q4 and is a testament to the changing landscape. We are experiencing larger investments by local real estate funds associated to an inflow of foreign capital, which should help the volumes to reach €600 million in 2024”
Hungary offers several advantages to a sophisticated foreign investor looking to buy prime European properties.
For one, capital Budapest is a very promising near-shore center in Europe with several competitive Business Process Outsourcing (BPO) companies. The Information and Communication Technology (ICT) sector in Budapest is the driving force behind a majority of the property investments there. If you need to sell an overseas property in Hungary contact us today.
But the primary buyers of high end property in Hungary are foreign investors, especially those who are attracted by the excellent tax breaks offered by the Hungarian government to those making real estate investments in the country. Hungary is considered to be one of the least corrupt nations in the world, and the openness and transparency of doing business in Hungary are well appreciated by overseas investors.
As Rita Tuza, who heads Research Hungary explains, “The increasing investment activity is supported by several factors. By mid-2022, office availability shrank to 17.6%, the lowest rate of the past 5 years. In other words, vacancy is back to its pre-crisis level.
“As for the industrial market, we expect occupiers to be especially active in 2024. Nearly 180,000 m2 industrial space was let during the first half of the year giving grounds for optimism. The growing household consumption and the promising retail sales volume support a new expansion cycle for retailers and also encourages potential new brands to enter the Hungarian market.
“The upgrade of existing shopping centers will continue further, but, the market will also receive stimulus from the potential launch of a new shopping center development.”
So, quite clearly, if you’re looking to sell property in Hungary, you will certainly benefit from the massive new interest in the country from overseas investors, especially those from non-European Union countries such as China, Russia and the Middle East.
Before we tell you how to sell property in Hungary really fast, it is important to know the details about the capital gains tax to be paid by you on the sale.
Thanks to a new ruling by the Hungarian government, property owners in the country don’t have to pay capital gains tax if they are selling the property after 5 years of having held it. However, if you are selling your Hungarian property within 5 years of having bought it, you will be asked to pay a flat capital gains tax of 16% on the profits you make from its sale.
Hungary’s capital gains tax is very reasonable and is one of the lowest rates in the world. This is very much advantageous for you if you’re looking to sell property in Hungary.
The first step while selling Hungarian property is to hire an international real estate agent who will help you get rid of it really fast to cash rich high net worth individuals from Russia and China.
The next step is to make your property presentable, carry out extensive kitchen and bathroom renovations, painting and electrical works. It helps to redo the garden as well. The idea is to ensure that your property looks brand new when the foreign buyers come visiting.
Once the deal has been made, hire an experienced local solicitor to take care of the property negotiations and contract signings on your behalf. Your solicitor should have a good command of English and he should help you with your paperwork.
We hope you find these tips on selling your property in Hungary quite useful. UK & Irish Estate Agents Selling Property in Hungary