Over the past 3 years, Hungary has become one of the countries where CIS citizens (especially Ukrainians and Russians) prefer buying real estate. Therefore, now this European country is competing with other popular directions like Cyprus and Spain, Montenegro and Bulgaria. So what factors make foreigners get so interested in Hungary?
Houses and Apartments in Hungary: What Are the Trends?
According to the statistics, the Hungarian housing boom came in 1998-2007. In 2013-2014 most prices stabilized but one year later they started to grow because the demand increased by 15 %. The country is situated not far from the most developed countries of Central and Northern Europe, opening paths to many major business and tourist centers of the European Union. This fact makes Hungary one of the most profitable places for living, especially when real estate costs here are lower when compared to European ones.
Obtaining a Residence Permit after Buying a Property
There are cases when purchasing a property in Europe allows obtaining the golden residence permit. However, it falls for Greece, Portugal, and Spain only. Special state programs are launched there to attract real estate investments.
What about Hungary? The local program also allows obtaining a residence permit for the investment in record time. Still, this program has nothing to do with real estate.
In case you have used the benefits of the local investment program and obtained a residence permit in Hungary, you might get interested in buying property for a mortgage. The main requirements under which state banks issue large loans are as following:
- official status in one of the EU countries
- required level of income
After you confirm the financial assents legally by providing income certificates, you can count on a loan of nearly € 100.000. This loan is registered within 4-6 weeks and is given for 10 years. Mortgage lending rates here are higher than in other EU countries – up to 7.5 % yearly. Besides, you will have to pay bank insurance in the amount of € 300-400 annually.
What Property to Buy in Hungary
Start with Budapest as well as resorts of lakes Heviz and Balaton. The capital offers modern and affordable apartments, while resorts are full of small houses for two and luxury villas on the banks of picturesque lakes. The cheapest apartments cost around € 50.000. Their total square is nearly 70 m² (2-3 rooms)