Development of investment real estate market in Hungary
Due to a stable governmental situation in Hungary, it has a good climate on the investment and real estate market.
In the area of tourism, this is
reflected by a constant increase in tourist numbers. The average occupancy rate
of the 3 * - 4 * hotels in Budapest is 65% and is permanently rising. This
results in good returns from income and hotel properties.
An increasing demand for
accommodation possibilities is noticeable in the field of 3* and 4* hotels, but
also in the field of 5* hotels in Budapest as well as in other tourist regions
of the country. This demand is to be covered by the construction of new, high-quality
hotel properties. In addition, good returns for such properties can be expected
due to Hungary's application for Olympics. Source: http://www.touristiklounge.de
The economic situation in Hungary is
largely stable. Economic development shows a positive potential with a
projected increase to 3%. This also prompts foreign investors to increase
investment in terms of income and commercial real estate. Source:
International Telecommunication Union, The ICT Development Index 2014.
This positive development is seen
not only in Budapest in the segment of attractive investment real estate, such
as office and business properties with yields of 6.5% - 8%, but also in other
economically growing regions of the country.
The continuous development in the
commercial and office real estate market with good returns also affects the
interests of foreign investors who are moving out of the countries such as
England, France, Germany and investing in the income real estate in Central and
Eastern Europe, where they can expect higher yields.
For Example:
District investment project Palatine
City in a West Hungarian city, where in a former industrial area, in a close
cooperation with city government a mixed use project of living, working, and
studying space will be created. Source: www.palatine_brochure_24 +
4_05.07.14.compressed.pdf
Note:
However, investors and property
buyers are advised to turn to the real estate brokers (www.immotrading.at),
which are already established in Hungarian real estate market. As a result of unofficial
brokerage activity, foreign investors can encounter many negative surprises,
such as missing mandates and brokerage agreements, etc.
Sources:
The real estate market, however, is
not yet overheated and will also be interesting to investors because of its
mild tax measures, such as reduction of corporation tax to 9%.
The Hungarian government would like
to make the country more attractive to entrepreneurs. As a result, the
government announced that it would lower corporation tax to the lowest rate in
the EU. Source:
https://www.unzensuriert.at/content/0022423-Koerperschaftssteuer-Senkung-Ungarn-will-business-friendly-state-Europas
In the scope of residential space
(rehabilitation or new construction of the property or rented housing), Hungarian
government offers a value-added tax of only 5% instead of the normal tax rate
of 27% for developers.
Budapest, for example, has good
universities frequented by many non-local students. In 2014-2015 alone, the
number of students in Hungary has increased by 32%. For this reason, there is a
great demand for student rooms or apartments, which is to be covered by an
investment program of the Minister of Human Resources Zoltán Balog as well as
by a national university development strategy.
A total of 123 universities and 37467
people are involved in this government's development strategy. During this
development phase, new buildings will be built with a total of 4000 new rooms
and 8000 beds. 12000 rooms for 29000 beds will be renewed or renovated.
The cost of this development
strategy amounts to HUF 192.6 billion. Development expenditures will reach HUF
24 billion in the first stage alone. According to the timetable, investments
are to be made in 2018-2020.
Another 32 colleges with an
investment volume of 68 billion are also affected.
A further 40 universities are
expected to get an investment of 50 billion in 2020 and 2021.
In the last stage, by 2023 the
investment of HUF 52 billion is to be implemented in 44 universities for
improvements and sanitation measures.
Source:
http://magyaridok.hu/belfold/kozel-200-milliardot-fordit-kormany-kollegiumfejlesztesre-1248493/
For foreign investors there are also
other interesting tax or financial incentives in this area.
Приобретая проекты в сфере недвижимости (снос - новый проект или проект реконструкции старого здания), жилая недвижимость / жилые комплексы могут быть созданы и использованы экономически (аренда, аренда, продажа).
Примечание:
При приобретении имущества и поглощении или создании нового Kft (компании) иностранный инвестор может подать заявку на получение вида на жительство в Венгрии.
