Hungary is tightening rules on foreign property purchases. Restrictions on home purchases by non-residents will come into effect on July 1.
Foreign citizens who are not members of the Schengen/EEA will have to obtain permission from a government commission to purchase real estate, including houses and apartments. Significant restrictions on land and residential property transactions are expected.
The aim of the changes is to protect the domestic housing market from excessive foreign demand, especially in tourist and suburban regions, to reduce price inflation, and to prevent social tension due to rising rents.
The new changes are in line with environmental and social criteria; land transactions have long been restricted, and now similar measures are being extended to residential real estate.
According to data from the Hungarian Central Statistical Office (KSH):
2023 — foreigners purchased more than 6,300 residential units, which is 1,700 fewer than in 2022, accounting for almost 6% of all transactions and 7.6% of the portfolio price.
2022 — peak — about 8,000 purchases by foreigners.
National and category composition of buyers:
Germany — in first place, with more than 1,470 transactions in 2023, accounting for about 25% of all purchases by foreigners.
Slovakia, Romania, and the United Kingdom — 600–700 purchases each.
China — nearly 600 purchases, mainly in Budapest.
Ukraine — 131 property purchases.
As of early 2025, there are approximately 255,450 foreign citizens living in Hungary.
The limits introduced are aimed at reducing pressure on prices, especially in areas popular with foreigners — Budapest, Lake Balaton, and the border area.
The government seeks to prevent the rise in housing prices due to investments by non-residents, as well as to alleviate the shortage of affordable housing for Hungarians.
The new rules require approval and may slow down the purchase process by 2–3 months.
Prices in vulnerable regions are expected to stabilize and growth rates to slow down. Hungary will significantly tighten requirements for foreigners purchasing real estate.
