Real Estate Market News from Budapest, Hungary Browse dozens of articles on property prices, trends, facts and other useful information for investors and home buyers in Budapest.

New Energy Efficiency Certificate Introduced January 27th, 2012

As and from the 1st of January 2012, and according to EU Directive 2002/91/EK, all properties in Hungary must obtain a valid energy efficiency certificate when properties are either let for 1 year or more or sold. It applies to both buildings and the apartments / units within them.According to the decree an energy certificate must be obtained / provided when properties are let or sold, but also if deeds are transferred. The certificate is valid for 10 years (although in certain cases new certs are…

Forint at its Strongest in Three Months January 27th, 2012

Hungary's forint has not been as strong as on Thursday morning for three months. Shortly after 8 A.M. the HUF was quoted south of 296 versus the euro on the interbank market. After 09:00 it gained even more, going below 295. The forint rebound with momentum from its all-time low reached early in the year. During its appreciation it breached both psychological and technical barriers with ease, buoyed by the expected turnaround in the government's economic policy and increased confidence that Hungary…

Forint Drops but Real Estate Activity Continues January 6th, 2012

Many of you may have read recent news regarding the Hungarian government's negotiations with the IMF and EU, along with the news that HUF has dropped significantly against the EUR and Swiss Franc. At the time of writing the HUF is 314 to the EUR, which is an improvement of almost 10 points on the low of the last few days of 324.These are legitimate concerns. The reason for these issues however are a matter for debate. Most commentators believe it’s directly due to Government policy while the government…

Tower Moves to New Offices in Budapest December 23rd, 2011

Tower has recently completed its move to new head offices in Budapest. After spending the last three years at our Revay Street office we have moved to larger premises on Vaci Avenue just across from the Westend City Centre shopping mall and Hilton Hotel. The full address is: Tower Property GroupWest End Business CenterBudapest XIII Vaci ut 22-24HUNGARYWe are situated on the 7th floor. To view the location please click on the following link: New Tower Location The office is easily…

Hungarian Government Raises VAT to 27% December 9th, 2011

The Hungarian government as part of its plan to increase revenues to the exchequer has raised VAT by 2% in the new tax year. Which means that from January VAT on most goods and services rises from 25% to 27%.Tower's recurring fees will not alter however the increased VAT will be reflected in the final price of all services.The recent reduction of income tax to 16% of the profit still remains, with corporate tax still standing at 10% of the profit.

Hungary banks, gov't to agree on FX debt fix by Xmas, 2012 growth uncertain - Enonomy Ministry December 9th, 2011

Hungary’s government can reach an agreement with the Banking Association on new opportunities for foreign currency borrowers by Christmas, said Zoltán Cséfalvay, state secretary at the Economy Ministry, on Thursday. He also said the country’s debt-to-GDP ratio could drop to below 77% by the end of this year.Talking to InfoRádió on Thursday, Cséfalvay said an agreement may be reached soon between the government and the Banking Association on "further opportunities for foreign currency debtors". The…

Hungary posts EUR 500 m trade surplus, exports remain steady December 9th, 2011

Hungary has posted yet anther massive trade surplus of EUR 497.4 million in October, the ksh has reported on Friday. The accumulated balance stood at EUR 5.95 bn at the end of the tenth month. Although the European business cycle is palpably slackening and Germany’s export performance is worsening Hungary’s exports are apparently solid. While growth remains small but at least we have seen stable exports over the past few months.The EUR 497.4 m October surplus comes after a EUR 740.6 m surplus in…

Gas Check Season November 11th, 2011

As you know we are now entering the winter months. Which in Budapest can be relentless, with the cold conditions only easing about mid-March. Every year, not only in Hungary, it is advised by the authorities that those residences with gas heating equipment are checked for functionality and safety. However in Hungary this is obligatory, particulrly due to the amount of old type gas furnaces still being used within properties.Tower is currently carrying out checks on its apartments. At the inspection…

Lack of 'Saft Havens' Leads Investors to Prime Real Estate in CE Europe - Report November 11th, 2011

Overall property investment volumes in Central and Eastern Europe (CEE) amounted to 8.0 billion euros by the end of September 2011, the best month so far this year, and twice as high as last year. This according to a new report by global real estate firm CB Richard Ellis.The report says "The risk of inflation and limited alternative investment opportunities have increased the available money for investment into real estate. Within the CEE, prime real Central European real estate is particularly…

Record Rental Figures for August / September October 17th, 2011

Good news for landlords. It seems that the rental market is holding up in terms of activity. In August and September Tower managed to rent 130 properties for its landlords, which is up about 10% from last year, and approximately 50% from 2009.Tower's lettings manager Richard Vigh says the success is due to a number of factors. "What we have is a combination of well located properties from our landlords along with our own exhaustive use of all the marketing channels at our disposal. The properties…

Lifeline to Swiss Franc and Euro Mortgage Holders September 24th, 2011

The Hungarian Parliament has just passed an important measure to help people with a CHF / EUR based loans.According to the new bill people with foreign currency loans such as Swiss franc or Euro can repay the balance of their mortgage on a favaourable fixed exchange rate. The Hungarian Parliament passed the bill with an overwhelming majority wich will enable debtors to pay back credit at the exchange rate of 180 HUF / 1 CHF or 250 HUF / 1 EUR. Currently the HUF is 291 against the Euro, while people…

Lettings Season in Full Swing September 20th, 2011

Landlords will take comfort in that fact that lettings demand appears to be holding up in Budapest. Currently Budapest is benefitting from the annual influx of international students and others that take up residency in Budapest in August and September. In August alone Tower rented 80 properties, with September shaping up to provide something similar. Outside of these peak months however demand has been holding and the company has been maintaining its monthly average of 35-40 properties rented each…

Hungary VAT rise on the Horizon September 20th, 2011

Hungary is targeting to improve the 2012 budget balance by 750 billion forint, 200 billion forint more than planned, Economy Minister Gyorgy Matolcsy said. Of the planned savings, 450 billion forint will come from higher revenue, including a value-added tax increase to 27 percent from 25 percent, Matolcsy said at a press conference in Budapest today. The higher VAT rate will yield 150 billion forint in extra revenues, which the government will set aside in a special budget reserve, Matolcsy said.…

New Appointments September 19th, 2011

Tower is pleased to announce new key appointments in the lettings department. Richard Vigh Lettings Manager Richard Vigh, formally a consultant with CE Invest – Catherine Dickens properties has been appointed in September as Lettings Manager for Tower. Bringing a wealth of experience in lettings to Tower, Richard will be responsible for ensuring that Tower is keeping to its lettings targets every month and will also look for new ways to develop and enhance Tower’s already strong relationships with…