New Hungarian real estate trend: Slowly shifting to euro pricing?
The Hungarian real estate market is increasingly embracing euro pricing, especially for high-value properties.
The Hungarian real estate market is increasingly embracing euro pricing, especially for high-value properties in prime areas like Budapest’s city centre. As the forint weakens, sellers and investors are turning to the euro for stability in transactions.
A growing preference towards euro
As Pénzcentrum reports, The rise of euro-based property ads in Hungarian real estate has been linked to the forint’s weakening exchange rate. Experts, including Zsuzsa Lipták of zenga.hu, note that sellers increasingly favour euro-paying buyers, even when prices are set in forints, particularly in high-value areas like Budapest’s city centre and the Buda Hills. Some developers are now pricing properties exclusively in euros, a trend also seen in sectors like car sales. While the euro isn’t the country’s official currency, its growing use in Hungarian real estate reflects the challenges posed by the forint’s instability.
Pricing properties in euros
In the Hungarian real estate market, the trend of pricing properties in euros is becoming more prominent, particularly for high-value and luxury properties. According to Ferenc Máté, Deputy CEO of Duna House, 3% of current property listings are advertised in euros, with most over EUR 100,000. Due to the forint’s instability, sellers are increasingly favouring buyers willing to pay in euros, even if the original price is set in forints.
While euro-based rentals are more common for luxury apartments in prime areas, such as Budapest’s city centre and Buda Hills, they are less frequent in the wider rental market. This shift highlights the growing preference for the stability of the euro. However, experts suggest it remains more typical for high-end properties, with standard apartments still predominantly priced in forints. The trend also reflects changes in buyer behaviour, with foreign buyers and those in the western regions of Hungary more likely to encounter euro-based transactions.
High-end homes in Budapest
The Hungarian real estate market isn’t showing a strong shift towards euro pricing just yet, according to ELTINGA. Their data highlights that euro pricing is mainly seen in smaller, high-end developments in central locations. The latest Budapest Housing Market Report notes that only six residential projects in the city currently advertise prices in euros or factor in exchange rate changes between the euro and forint. These projects are in sought-after areas of Budapest’s 2, 7, 11, and 12 districts, including Endrődi38 Residence, Limetree Residence, Essence of Gellért, Eötvös12 Villa Park, and Diana Condominium. However, these developments represent just a tiny fraction of the overall new-build housing supply in the city.
What about rentals?
In the Hungarian real estate market, around 15% of rental properties are advertised in euros, while euro pricing is far less common for properties listed for sale, according to Zsuzsa Lipták, managing director of zenga.hu. Among homes for sale in euros, 26% fall between EUR 200,000 and EUR 500,000, while 33% are priced above EUR 500,000—making these two categories 60% of the market. For rentals, 40% are listed at EUR 200–500, with nearly 30% advertised at EUR 1,500 or more.
Investors often calculate in euros, but Hungarian sellers tend to prefer forints, partly due to the complexity of euro transactions and the need for specialised accounts. Some rentals to foreign tenants, paid in euros, remain off the books, contributing to the grey market. The number of euro-priced listings surged in October and November, likely tied to euro exchange rate fluctuations, with high-end properties seeing the most growth.
Read also:
- Are Romania and Bulgaria ahead of Hungary in adopting the euro?
- Unprecedented growth and rising prices: records and averages for Hungary’s housing market in 2024
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