Published on and written by Cyril Jarnias
Located halfway between Budapest and Szeged, in the center of the Southern Great Plain, Kecskemét has established itself as one of the most promising real estate markets in Hungary. Long known for its agriculture and famous apricot brandy Barackpálinka, the city has become over the past fifteen years a major automotive hub, driven by Mercedes‑Benz and a dense network of suppliers. This economic shift is directly reflected in property: rising prices, a tight rental market, new residential neighborhoods, and a rush on industrial land.
Good to know:
For a French-speaking investor, Kecskemét offers several advantages: lower prices than Budapest, strong demand growth, state‑funded infrastructure, and a national context where real estate remains a key capital appreciation vehicle.
Kecskemét: an economic and geographic crossroads
Kecskemét is not a simple provincial town. It is the largest urban area in the Southern Great Plain region, a center for administration, education and the economy for some 400,000 to 500,000 people if you include its catchment area. It lies 86 km from both Budapest and Szeged, nearly equidistant from the Danube and the Tisza rivers.
4
The city is at the center of a network of 4 major transport infrastructures being transformed, boosting its appeal for real estate investment.
Economically, Kecskemét is now considered Hungary’s third most important city in terms of industry and culture, behind Debrecen and Győr. The production base combines high‑value agriculture (fruit, vegetables, viticulture), agri‑food, construction, services and above all automotive.
The Mercedes‑Benz engine and the explosion in housing demand
The foundational event for the local real estate shift remains the announcement in 2008 of the construction of a Mercedes‑Benz plant. Daimler invested around 800 million euros to set up a production site for the B‑Class, later the A‑Class and CLA. The ramp‑up was rapid: 3,000 jobs initially planned, nearly 4,000 employees by 2015, about 5,000 today, with new investments in battery assembly and luxury electric vehicle production.
Attention:
The plant is embedded in a vast network of partner companies (equipment suppliers, logistics, construction) and contributes significantly to the regional economy, representing up to 21% of manufacturing output and 33% of Hungarian exports.
For the real estate market, the effect is mechanical: influx of skilled workers, arrival of families, need for engineers, technicians, but also outsourced labor, providers, teachers, doctors. The unemployment rate is particularly low (around 2.7% in 2024) and employment in city enterprises rose from about 18,350 in 2016 to 22,730 in 2019. Projections suggest the municipal population could grow from roughly 110,000 today to 130,000 within a decade.
This context creates a “hot market”: strong rental demand, pressure on housing near employment hubs, upward pressure on sale prices, and scarcity of quality properties in some neighborhoods.
Price levels: still below Budapest but catching up
In terms of prices, investing in real estate in Kecskemét remains significantly more affordable than in the capital, while still offering strong growth momentum.
Average prices in Kecskemét
The most recent data shows:
– the average price per square meter in Kecskemét is around 776,000 to 800,000 HUF for housing (roughly €1,970) depending on the type (new / old);
– a typical new home sells for about €95,500 in the Kecskemét area, with an estimated price per square meter of €1,750;
– the average price of a residential property is around 40 to 40.3 million HUF, i.e. about €98,000 to €99,000.
836,000
The average price per square meter expected by the end of 2026, indicating continued real estate appreciation.
National comparison
In perspective with the rest of the country:
| Location | Average price m² (HUF) | Average price m² (EUR, approx.) | Comment |
|---|---|---|---|
| Hungary – existing (average) | 519,000 | ~1,280 | Resale nationwide |
| Budapest – existing | 955,000 | ~2,355 | About 2x the national average |
| Hungary – new (average) | 1,200,000 | ~2,900 | All types of cities |
| Budapest – new | 1,500,000 | ~3,695 | Peak in central districts |
| Kecskemét – new | 800,000 | ~1,970 | Well below Budapest |
| Kecskemét – existing (houses) | ~746,000 | ~1,840 | Q2 2025 data |
| Kecskemét – apartments (supply) | ~905,000 | ~2,230 | Q2 2025 data |
We can see that Kecskemét falls in an intermediate range: more expensive than a very cheap city like Nyíregyháza (under 700,000 HUF/m²) but clearly below Budapest and tourist hotspots like Lake Balaton (about 760,000 HUF/m² in secondary areas, up to 1.4 million HUF/m² in some resort towns).
In the European context, Hungary remains one of the cheapest markets in the EU, with prices 20 to 30% lower than other capitals like Ljubljana, Madrid or Lisbon. Kecskemét therefore offers a double discount: relative to the EU and relative to Budapest.
Residential rental market: solid returns and robust demand
The core of rental investment in Kecskemét remains long‑term housing, driven by the industrial workforce, related services and students. Rental figures give a fairly precise idea of yields.
Rental levels in the city
The average monthly rents observed are as follows:
| Property type | Location | Average rent (HUF/month) | Typical range (HUF/month) |
|---|---|---|---|
| 1‑bedroom apartment | City center | 165,000 | 130,000 – 200,000 |
| 1‑bedroom apartment | Outside center | 130,000 | 110,000 – 150,000 |
| 3‑bedroom apartment | City center | 230,000 | 160,000 – 300,000 |
| 3‑bedroom apartment | Outside center | 195,000 | 140,000 – 250,000 |
Relative to price per square meter, these rents generate gross yields around 4% on average:
– gross yield in the city center: about 4.23%;
– gross yield outside the center: about 4.03%.
Example:
In 2025, gross yields in Kecskemét, while lower than those of opportunistic provincial markets like Debrecen (~5.47%), are more favorable than those in central Budapest (where some segments cap at 3‑3.5%). The national average is around 5.06%, so Kecskemét is slightly below, but its appreciation potential is boosted by the local industrial dynamic.
Price/income ratio and affordability
A useful indicator for evaluating market sustainability is the price/income ratio and the debt burden. In Kecskemét, several parameters stand out:
9.92
It takes nearly 10 years of average income to buy an average home, with a price/income ratio of 9.92.
These figures show homeownership is demanding for local households, which mechanically strengthens rental demand, especially for young professionals or newcomers without a local banking history.
For a foreign investor using equity, the effect is doubly interesting: solvent tenants linked to major employers and a barrier to homeownership for part of the population, thus sustaining a deep rental market.
Short‑term rentals and Airbnb: a niche rather than hyper‑growth
Unlike Budapest or Lake Balaton, Kecskemét is not a mass tourism destination. Its short‑term rental market is therefore much more compact, and primarily driven by business trips, corporate travel and moderate urban tourism.
Data records about 36 active Airbnb listings, of which nearly 95% are entire homes, mostly one‑bedroom apartments. The average capacity is 3.4 people, with an over‑representation of properties for 2 to 4 travelers.
Typical observed performance:
| Indicator | Approximate median value |
|---|---|
| Median monthly revenue | ~$866 |
| Median occupancy rate | ~37% |
| Median average daily rate (ADR) | ~$81 |
The best properties (top 10%) reach over $2,000 in monthly revenue, with occupancy rates above 80% and ADRs exceeding $110 per night. But these are isolated cases, often very well located and professionally managed.
Tip:
Another element to consider: the demand peak occurs in January, which corresponds more to business flows or a local calendar (trade fairs, events) than to a beach season. Summer remains active, but the city does not have the profile of a tourist resort.
Finally, the gradual tightening of short‑term rental rules in Budapest (banning Airbnb in some districts, higher taxes, announced restrictions) may encourage investors to diversify into cities like Kecskemét. But at this stage, short‑term rentals should be seen as an opportunistic complement, not the foundation of a strategy.
Market segments and property examples
An overview of sample listings helps to better understand the market structure.
Thus we find:
Real Estate Market in Kecskemét – Price Examples
An overview of available properties in Kecskemét, illustrating the diversity of supply from small downtown apartments to detached homes on the outskirts.
Small Downtown Apartments
40 to 50 m², two rooms. Prices around 35 to 38 million HUF. Examples: 43 m² at 37.5 M HUF or 39 m² in a recent park at 38.5 M HUF.
Family Apartments
60 to 100 m² (3 to 5 rooms) in residential areas like Széchenyiváros. Prices between 47 and 63 million HUF.
Detached Houses
Houses of 90 to 130 m² on the outskirts (Kadafalva, Fenyves lakópark…). Prices from 73 to 94 million HUF depending on condition and location.
Building Plots
Land for development or self‑build. Example: 480 m² lot at 33 million HUF near a medical center.
Commercial Premises
Numerous premises downtown (Mária körút, Belváros) and in the business park (airport). For sale or rent, reflecting commercial dynamism.
This range illustrates one thing: investing in real estate in Kecskemét is not limited to residential. Industrial growth multiplies the need for offices, showrooms, warehouses, production units, paving the way for mixed or purely commercial strategies.
Neighborhoods and micro‑location: where to look first?
For an investor, knowledge of the neighborhoods is crucial, not only for yield but also for liquidity upon resale.
The city is divided into several administrative districts: Belváros (city center), Árpádváros, Máriaváros, Széchenyiváros, Bethlenváros, plus peripheral residential areas like Kadafalva or industrial park zones.
Belváros (city center)
This is the historic heart, dominated by the main square, city hall, Cifrapalota, Art Nouveau buildings and key services. Supply consists of renovated older buildings, small modern buildings and ground‑floor retail.
Good to know:
This area offers the highest rents per square meter and good liquidity. Investment requires a higher entry price than the city average. It is particularly suited to short‑term rentals and high‑end furnished lets for executives on assignment.
Széchenyiváros and planned residential areas
These neighborhoods, built from the second half of the 20th century and then densified, offer large apartment blocks, green spaces, schools and services. Prices are often slightly lower than the center, but demand is very stable, especially among families.
These are interesting areas for targeting decent profitability while limiting rental vacancy risk.
Kadafalva and suburban residential outskirts
Kadafalva is typically described as a residential suburb with easy parking, more spacious homes and more affordable prices. It is a logical target for single‑family homes or small housing developments aimed at families with cars, seeking peace and space.
Tip:
For an investor, these areas are interesting if you are targeting long‑term rental houses, possibly for automotive executives or upwardly mobile households.
Mercedes perimeter and industrial parks
Several parks are directly adjacent to the Mercedes plant (IGPark Kecskemét South, Premium Industrial Park, Kecskemét South Industrial Park, IGPark West near the M5). You will find production halls, logistics platforms, warehouses from 15,000 to 40,000 m², often fully occupied by major international groups (Dachser, HBPO, MOBIS, ZF…).
Even though these assets are rarely accessible to small individual investors, they show that a secondary logistics market is emerging. For those with larger capital, or via collective vehicles, logistics in Kecskemét can offer attractive yields and prime tenants, in a context of structural growth in the automotive sector.
Infrastructure: a long‑term value multiplier
One of the most powerful factors in Kecskemét’s favor is the scale of public and semi‑public infrastructure investments. The Hungarian state has clearly designated the city as a strategic node, and several major programs are underway or planned.
Highways and interchanges
Several projects are completely reshaping road accessibility:
– Opening of a 32.3 km section of the M44 motorway between Szentkirály and Kecskemét, connecting the city to Békéscsaba via a 2×2 lane expressway;
– construction of a gigantic interchange linking M5, M44 and future M8, presented as the largest rural road interchange in Hungary, with 22.3 km of roads and a full cloverleaf interchange;
– modernization of the northern ring road (Route 445), widening of major sections (Routes 441, 52, 54) to four lanes and creation of numerous roundabouts to smooth traffic flow.
Good to know:
New infrastructure projects, such as highways, transform land values. They bring peripheral neighborhoods closer to major arteries, enable the reclassification of agricultural land into business or residential zones, and generally drive land value appreciation.
Rail network and intermodal hub
Another aspect involves rail and public transport:
– announced renovation of line 142 Kecskemét–Dabas–Budapest and line 140 Szeged–Cegléd;
– project for a major intermodal hub at Kecskemét station, integrating trains, urban and interurban buses, P+R and B+R parking, and cycling network;
– station modernization with a budget of about 15 billion HUF;
– planned purchase of hybrid buses, with the goal of reserving the historic center (Nagykörút / Kiskörút) for low‑pollution public transport.
By reducing reliance on private cars and improving regional connectivity, these efforts further enhance residential attractiveness for commuters and young professionals.
“Modern Cities” program and urban amenities
Beyond transport, the city benefits from a massive financial package under the “Modern Városok” (Modern Cities) program:
City development projects
Structurally significant initiatives to strengthen the city’s economy, infrastructure, education and energy transition.
Economic support fund
Creation of an economic development fund of 25 billion HUF to lend to local businesses.
Transport and energy infrastructure
Completion of the ring road, modernization of Route 52 and reinforcement of electricity supply to industrial zones.
Educational and cultural facilities
Construction of a university research center, a 250‑seat concert hall linked to the Kodály Institute, and a bilingual vocational high school with dormitory.
Airport development
Development of the airport area with a new runway for civil aviation.
Energy transition
Project for a 5 + 2×20 MW biomass heating plant, aimed at reducing emissions and energy costs.
All these investments have a ripple effect on real estate demand, by improving either quality of life (culture, education, mobility) or the city’s ability to attract additional businesses, hence jobs and households.
National context: a real estate market under strong pressure
Investing in real estate in Kecskemét cannot be understood without placing the city in the national picture. Hungary has experienced an almost uninterrupted rise in residential prices since 2015. The house price index has more than tripled in ten years, with annual growth spiking above 20% at times.
In 2025:
– the national price index jumped about 18.3% year‑on‑year in the second quarter;
– new home prices rose about 11.1% year‑on‑year, existing home prices 19.2%;
– transactions rebounded after a lull in 2023 (over 126,000 sales in 2024, and about 155,000 expected in 2025).
68
The national rent index has increased by 68% in four years.
For a foreign investor, this context means two things:
1. property remains a valued refuge for households and an important tool of economic policy;
2. the likelihood of a sharp correction seems limited in the medium term, even if the Central Bank and the European Systemic Risk Board point to some localized overheating, particularly in Budapest.
Kecskemét, as an industrial secondary city, benefits from this dynamic without experiencing the price excesses of the capital.
Legal framework: what a foreign investor should know
The rules for acquiring real estate in Hungary are relatively clear, but they vary depending on the buyer’s nationality.
Conditions for foreigners
– Citizens of the EU, EEA and Switzerland can buy apartments and houses without a special permit (excluding agricultural/forestry land).
– Nationals of third countries (USA, post‑Brexit UK, Israel, etc.) must obtain authorization from the competent county administration before registration in the land registry.
– This authorization typically costs between 50,000 and 65,000 HUF (about €130–200) and processing time ranges from 2–4 weeks to 45–90 days.
– Buying agricultural land is effectively prohibited for foreigners, which steers investment toward residential and commercial property.
In all cases:
Attention:
For a secure purchase in Hungary, the signing of deeds must be countersigned by a Hungarian lawyer or notary. In addition, the buyer must obtain a Hungarian tax identification number (adóazonosító jel). It is crucial to note that ownership is only legally secured once the buyer is registered as the owner in the land registry.
Purchase process and transaction costs
The typical acquisition process:
1. selecting the property, possibly through an agency;
2. appointing a local lawyer (mandatory), verifying the title deed, existing charges, mortgages, third‑party rights;
3. signing a preliminary contract and paying a deposit (often 10%);
4. applying for a purchase permit for non‑EU buyers;
5. signing the final deed and paying the balance;
6. submitting the file to the land registry for registration;
7. paying taxes and fees.
Main costs:
| Cost item | Amount / indicative rate |
|---|---|
| Stamp duty | 4% up to 1 billion HUF, 2% above (cap 200 M HUF) |
| Legal fees | About 0.5% – 1.5% of price (+ 27% VAT) |
| Land Registry fee | About 10,600 HUF (standard registration) |
| Notary (if needed) | 0.01% – 0.05% of value |
| Purchase permit for foreigners (non‑EU) | 50,000 – 65,000 HUF |
| Miscellaneous (translations, appraisals, etc.) | Variable |
| Total acquisition charges (order of magnitude) | Up to ~10% of purchase price |
In addition, for a landlord investor, annual taxation includes:
Good to know:
Rental income is taxed at 15%, with the option to deduct actual expenses or apply a flat 10% cost allowance. Capital gains on resale are taxed at 15%, with a reduction based on holding period (exemption after 5 to 15 years depending on the case). Local taxes (building, land) vary by municipality. In Kecskemét, primary residences are often exempt or lightly taxed, while commercial and business properties are more heavily targeted.
Residency vs. real estate investment
Hungary has announced a “Golden Visa” program granting a 10‑year renewable residence permit in exchange for a residential real estate investment of at least €500,000. For a high‑net‑worth investor, investing in real estate in Kecskemét can therefore fit into a broader migration strategy, especially if you combine an asset in the capital with one in a dynamic secondary city.
Returns and risks: what profile for Kecskemét?
Combining all this data, how should we position Kecskemét in a real estate portfolio?
Rental yield and appreciation
– Gross residential yield around 4% (center / outside center), slightly below the national average, but with rents supported by a solid industrial employment base.
– Significant capital appreciation potential: the price per square meter has nearly tripled in a decade, and short‑term forecasts still point to further growth (e.g. +9.1% expected in 2024 for housing, followed by continued increases in 2025).
– The new housing market is expanding but still far from Budapest levels, leaving room for catch‑up.
Key risks to monitor
1. Macroeconomic and industrial risk
The city’s heavy reliance on the automotive sector (Mercedes and its suppliers) creates vulnerability in the event of a shock in this sector (poorly managed electric transition, reorganization of value chains, etc.). However, recent investments in batteries and electric vehicles suggest the site is considered strategically important in the long term.
Attention:
At the national level, some indicators show that prices exceed fundamentals by about 18–20%. This does not necessarily mean a bubble ready to burst, but it limits the potential for infinite increases and calls for caution on leverage (debt).
3. Political and regulatory risk
There are debates about the possibility of allowing municipalities to limit non‑resident purchases of homes in certain peri‑urban areas. If such measures were applied locally in the coming decade, they could constrain certain investment segments, although Kecskemét as an industrial city is less targeted than the “commuter suburbs” of Budapest.
78
The average time to sell a property in Kecskemét is about 78 days.
5. Construction / condominium risk
As everywhere, construction quality varies, and condominiums can hide liabilities (insufficient reserve funds, major renovation decisions). Thorough due diligence and a review of general meeting minutes are essential.
What type of investor?
Investing in real estate in Kecskemét is particularly suited to several profiles:
– the long‑term investor looking for a balanced yield/appreciation mix, with a 10‑15 year horizon;
– the investor wanting to diversify geographically from Budapest, while staying in a city with strong economic intensity;
– professionals or entrepreneurs already involved in the industrial chain (automotive suppliers, logistics) who can combine business real estate with investment property;
– families or individuals aiming for a lifestyle project (relocation, partial telework, semi‑primary residence) in a larger city that is calmer and more affordable than the capital.
Concrete investment strategies in Kecskemét
In conclusion, several strategic approaches emerge from the available data.
1. Medium‑sized apartment in or near the center
Targeting an apartment of 50–70 m², two or three rooms, in Belváros or Széchenyiváros, meets broad demand: young couples, executives, families with one child. This segment combines:
– good resale liquidity;
– relatively high rent per square meter;
– limited vacancy in a tight market.
The gross yield of around 4% may seem modest, but the outlook for rent and price increases partly compensates, especially if you finance partly with equity to limit borrowing costs.
2. Detached house in a residential suburb (Kadafalva, Fenyves, etc.)
For an investor more focused on long‑term cash flow, buying a 90–120 m² house on a plot in a quiet residential area allows targeting:
Good to know:
This type of property typically attracts households with stable incomes, often employed in sectors like automotive or public services. They seek long‑term leases, avoiding frequent moves. Additionally, the investment offers land appreciation potential if the urban area expands and infrastructure develops nearby.
Maintenance is more costly than for an apartment, but the relative scarcity of houses for rent can justify attractive rents.
3. Small commercial unit or office downtown
With growing demand for services (cafés, restaurants, shops, medical practices, SME offices), a 30–100 m² unit in Belváros can offer higher yields, provided the location is well chosen (busy street, visibility, commercial mix of the neighborhood).
Good to know:
This investment segment is more sensitive to economic cycles. However, in a city where incomes and employment are growing, the risk remains measured.
4. Participating in a logistics / industrial project
For larger capital, looking at logistics space (halls, warehouses, workshops) in parks near Mercedes or the M5 motorway can generate attractive rents, often indexed, with blue‑chip tenants. This is a strategy closer to classic commercial real estate, often via companies or funds.
Conclusion: Kecskemét, a rational bet on productive Hungary
Investing in real estate in Kecskemét is not about betting on a tourist postcard or a passing fad. It is a bet on productive Hungary, on electric automotive industry, on the urbanization of a regional metropolis backed by billions of euros in public and private capital.
Prices remain clearly below those in Budapest, rental yields are respectable, demand is driven by real jobs rather than speculation, and infrastructure is making the city an increasingly essential hub between Western Europe and the Balkans.
For a French‑speaking investor looking for a growing market that is more manageable than a hyper‑competitive mega‑capital, Kecskemét offers a rare compromise: manageable risk, significant upside potential still, and an economic environment whose fundamentals – employment, industry, connectivity – remain, at this stage, solidly oriented toward the future.
A wealth project or a question? Contact us now to speak with a wealth management expert.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
