Eastern Europe is definitely an area to watch out for real estate investors. While countries in the region are recovering differently from the global crisis, we are lucky to have a fair depiction of Hungary’s market thanks to our Members Otthon Centrum. So Hungary luxury real estate: go/no go?
On the Hungarian real estate market, the luxury category starts at 300 M HUF (approx. 1M euros) for single family homes and at 100 M HUF (approx. 300K euros) in the apartment segment
On the Hungarian real estate market, the luxury category starts at 300 million HUF (approx. 1M euros) for single family homes and at 100 million HUF (approx. 300K euros) in the apartment segment. These properties make up for only about 1.5% of the total residential market nationwide.
Most of these properties are located in the capital city of Budapest, those outside are most prominently centered around Lake Balaton. The segment is characterized by cash-buyers with a slower, more emotional decision making process as explained by Otthon Centrum, Hungarian Member of the international organization Prestige MLS, specializing in high-end and luxury properties.
Single family units priced at over 300M HUF and apartments priced at over 100M HUF are almost exclusively found in Budapest and its suburbs, with a few exceptions scattered around the country. One example for this is an equestrian estate, with a luxury mansion for 300M HUF, another is a 600 sq.m., single family home with an inside pool in Sopron, near the Austrian border, with a 200M HUF price tag, or a renovated villa originally built in the 1900’s with a 30-meter stretch of private waterfront from Fonyód, at lake Balaton, also for 200M HUF. Outside the capital it is especially true that these properties make up for only a minute portion of the market adding up to less than 0.5%.
Asking price, however, is not the single criteria for luxury status – obviously every detail needs to reflect premium quality. The inside pool, wellness center, high quality materials, modern technological solutions, multi-car garage are all standards for the luxury title. Not all high-priced properties are considered luxury however. Due to their size, or potential return on the investment, it is not rare to see among the most expensive (priced even over 1,000M HUF) properties that clearly do not qualify as luxury due to their less than premium quality location or built-in materials.
