Published on and written by Cyril Jarnias
Gyöngyös does not appear in any international ranking of real estate “hotspots.” Yet, this small town of about 30,000 inhabitants, located some 80 kilometers east of Budapest, is increasingly ticking boxes for the investor looking for a still-affordable market, backed by a local economy undergoing a major overhaul and supported by the general momentum of the Hungarian market.
The town benefits from a triple advantage: national policies favorable to real estate investment, a Hungarian market undervalued at the European level, and an exceptional local development program for its size. These national trends and local projects outline a credible investment strategy, despite the lack of specific published data on Gyöngyös.
Understanding the Hungarian context to assess Gyöngyös
Before looking at Gyöngyös, one must understand the backdrop: Hungary is today one of the cheapest real estate markets in the EU, while also being one of the fastest-growing in terms of prices.
The average price of a residential property in Hungary is around 45 million forints.
In terms of price per square meter, the gap is very marked between Budapest and the rest of the country. In the capital, the average is around 1.3 to 1.5 million HUF/m², whereas in small towns and rural areas, prices are rather around 500,000 HUF/m², or even less in some regions of Northern Hungary. In other words, the provinces remain two to almost three times cheaper than Budapest.
The town of Gyöngyös, located in Northern Hungary, presents property prices significantly lower than those in Budapest. The average price of a resale property in this region is around 36,000 euros, nearly 3.5 times cheaper than in the capital, attracting investors with its excellent price-to-quality-of-life ratio.
This national context has two direct consequences for an investment in Gyöngyös. First, the entry ticket remains very moderate for a European investor. Second, the price gap with the capital leaves potential room for medium-term appreciation, especially when the town aligns with ambitious development projects.
A national market rising sharply, despite the slowdown in transactions
The other defining feature of the Hungarian market is the speed at which prices are rising. Since 2015, property prices have more than tripled in the country. The indices of the Hungarian central bank (MNB) still show a year-on-year increase of over 18% in the second quarter of 2025, accelerating to over 21% in the third quarter. Budapest is doing even better, with an estimated year-on-year increase of nearly 30% in the summer of 2025.
In the first half of 2025, the Hungarian real estate market shows signs of cooling with an approximately 14% drop in transaction volume. However, this decrease in demand is not accompanied by a drop in prices. The National Bank of Hungary (MNB) even estimates that prices have recently exceeded economic fundamentals by 14 to 19%. Analysts describe a market in a boiling phase, showing speculative signs, particularly in certain segments in Budapest.
For an investor, this means two things. In Budapest, entering today amounts to buying expensive in an already very tight market. In secondary cities like Gyöngyös, on the contrary, prices start from a much lower level, and catch-up effects can still play out, especially where economic activity and infrastructure are undergoing a full transformation.
Forecasts from major market players remain frankly bullish: OTP Mortgage Bank anticipates a national average increase of about 15%, with up to 20% in key areas, while other projections see prices in Budapest still rising by 30% over five years in a central scenario, or even more in an optimistic one. Even if average gross rental yields ease slightly (around 5% for apartments), the combination of yield + capital gain remains potentially very attractive.
Gyöngyös: a small town, big investments
The uniqueness of Gyöngyös lies in the scale of investments committed to its territory in recent years. Over about five years, the town and its administrative area have seen over 13 billion forints worth of projects realized across all domains: infrastructure, sports, culture, water and sewage networks, industrial zones, urban development, support for the non-profit sector.
The table below provides an overview of the main project groups and their amounts, only for those with clearly documented costs.
| Project / Project Group | Amount (HUF) | Primary Funding Source |
|---|---|---|
| Urban Infrastructure Renewal (project group) | 5,889,000,000 | Mostly State + Town |
| Renovation of State-Managed Urban Roads | 3,612,000,000 | Government |
| Renovation of Roads and Sidewalks (Town’s Own Budget) | 1,205,000,000 | Municipal Budget |
| Reconstruction of Water and Sewer Networks | 1,072,000,000 | Municipal Budget |
| Modernization of Public Lighting | 350,000,000 | Municipal Budget |
| Wastewater Collection/Treatment Development | 2,279,482,781 | European Funds (EU Project) |
| Creation of a New Industrial Zone (150 ha) | 696,190,062 | European Funds |
| Rehabilitation of the Town’s Northwest Quarter | 899,616,000 / 763,716,106 | European Funds |
| “Active House” Project and Sports Center | 774,502,757 | European Funds |
| Cultural and Active Tourism Development | 564,245,299 | European Funds |
| Modernization of the Mátra Cultural Center | 448,678,000 | European Funds |
| “Livable City” Projects (playgrounds, pump track, etc.) | ~400,000,000 to 438,260,000 | European Funds |
| Jeruzsálem Street Nursery and Kindergarten | 265,597,000 | European Funds |
| Other Kindergarten Renovations (Town Budget) | 99,169,000 | Municipal Budget |
| Social Cooperation Programs | 203,694,000 / 338,431,000 | European Funds |
| Drug Prevention Program | 75,037,000 | European Funds |
| “CLLD – Gyöngyös-Mátra Values” Project | 59,700,000 | European Funds |
It is immediately clear that for a medium-sized town, these amounts are considerable. They reflect three major axes for the real estate investor.
The town’s development strategy relies on three key investments. First, massive investments in basic infrastructure (roads, networks, public lighting) directly improve residential attractiveness through repaved streets, better accessibility, and increased quality of urban services. Second, the town strengthens living amenities (schools, nurseries, cultural centers, playgrounds, sports facilities), a decisive factor for families with children, who form the core of the long-term rental market. Finally, and this is particularly crucial for an investor, Gyöngyös is betting on economic development through the creation of a large new industrial zone.
The new industrial zone: a strong signal for rental demand
One of the most structuring projects for the town’s future is the creation of a new 150-hectare industrial zone south of Gyöngyös. The existing industrial park being saturated, the municipality obtained European funding to develop a new site, with enhanced accessibility, access roads, and utility corridors planned under national programs like Széchenyi 2020.
For a real estate investor, this type of industrial development has a mechanical effect on the local housing market: arrival of companies, subcontractors, skilled or unskilled jobs, housing needs for employees, sometimes for expatriate managers or interns, and more broadly an increase in local incomes.
Analysis of the potential for industrial and logistics company establishment in the town, based on the occupancy of the existing park and geographical advantages.
The old industrial park is currently “full,” necessitating the creation of a new activity zone to meet demand.
Although public figures are not yet available, the need to expand capacity indicates strong interest from industrial investors.
The country benefits from a competitive labor cost within the European Union, a major asset for attracting projects.
The town is well connected to the capital and the east-west axis, a key advantage for capturing industrial and logistics relocation activities.
In the medium term, this type of project generally translates into a progressive increase in rents and a stabilization of rental demand, especially when the town accompanies these investments with social programs to strengthen cohesion, limit pockets of poverty, and improve quality of life.
Heritage, culture, active tourism: Gyöngyös is not just playing the industrial card
Gyöngyös has not only invested in its truck parking lots and sewer networks. Several projects directly target improving the town’s tourist and cultural appeal, in a region – the Mátra area – already known for its landscapes, hiking, and outdoor activities.
The rehabilitation of the Baroque manor Haller–Berényi–Orczy into a new cultural space (museum, gallery) as part of the northwest quarter renovation, the modernization of the large Mátra cultural center, and a project for developing cultural and active tourism including a panoramic elevator and an observation platform connected to a bike path to Mátrafüred—all of this is part of the same strategy: to make Gyöngyös a small regional cultural and tourist hub, not just a commuter town or an industrial zone.
For the investor, the impact is not immediate yield, but it acts on two levers: demand for permanent residences, as residents value cultural amenities and quality public spaces, and seasonal rental potential, especially if the supply of modern accommodations is limited. A better-equipped town with an enriched cultural offer, like in the Mátra region, attracts more nature lovers and increases its chances of being chosen as a base for stays.
The “CLLD – Gyöngyös-Mátra Values” project, comprising over 20 sub-projects involving the non-profit sector, goes in the same direction: encouraging local initiatives, strengthening the social fabric, offering activities and services rooted in the territory’s specificities. In a real estate market, an active community life and a rich cultural agenda are arguments that matter increasingly to the middle classes.
A town already thinking climate and sustainability
Another element distinguishes Gyöngyös from many towns of comparable size: its stated desire to position itself on ecological transition and EU climate policies. The town has joined the European Climate Mission, the mayor has signed the corresponding charter, and Gyöngyös is among the 60 “CrAFt cities” selected in Europe to test urban transformation models linked to climate adaptation.
The town’s sustainable development strategy includes harnessing geothermal energy, renaturing spaces, sustainable water management, and energy-saving measures in buildings. For an often energy-inefficient building stock, this strategy offers two advantages: access to renovation subsidies and a future preferential valuation of properties with good energy ratings.
At the national level, it is already known that housing maintenance costs are significantly lower in new or renovated and well-insulated buildings than in the historic old stock. In a market where energy is becoming an increasingly scrutinized cost, choosing properties in Gyöngyös that could benefit from energy renovation programs in the medium term can create a significant value differential compared to buildings left in disrepair.
Who can buy in Gyöngyös, and under what conditions?
Legally, investing in Gyöngyös follows exactly the same rules as anywhere else in Hungary. The country is one of the markets most open to foreign capital in Europe. Citizens of the European Union, the EEA, and Switzerland can freely purchase non-agricultural properties under the same conditions as Hungarians. For third-country nationals (post-Brexit UK, United States, Canada, etc.), purchasing a residential property requires authorization issued by the government office of the relevant county.
The administrative authorization for a property purchase in Hungary costs about 50,000 HUF (around one hundred euros) per property. The processing time is generally 30 to 45 days, sometimes longer. The application must include the preliminary sales contract, a copy of the updated title deed, identification documents, and sometimes a translated criminal record extract. Authorities verify that the transaction respects the public interest, does not concern agricultural or forest land, and that the buyer is not subject to a stay ban.
Two essential rules to remember for Gyöngyös as for the rest of the country. First, foreigners cannot buy agricultural or forest land; only land zoned for construction or built properties are accessible. Second, the involvement of a Hungarian lawyer is mandatory, as only they can draft or countersign the deed and register the transaction in the land registry. Their fees typically range between 0.5% and 1.5% of the sale price, plus VAT.
Taxation: a relatively light framework, especially long-term
The tax environment is one of Hungary’s assets for an investor, including in Gyöngyös. On rental income, an individual is taxed at a flat rate of 15%. They can choose between a standard deduction of 10% for expenses without receipts, or the deduction of actual expenses (renovations, charges, management fees, etc.) upon presentation of proof. The country only taxes Hungarian-source income for non-residents, which simplifies the tax situation for many foreigners, especially since Hungary has signed over 80 double taxation treaties.
In case of resale, the capital gain is taxed at 15%, but the percentage of the taxable gain decreases with the holding period: 100% the 1st year, 90% the 2nd, 60% the 3rd, 30% the 4th, and 0% from the 5th year onward. An investment held for at least five years in Gyöngyös is therefore completely exempt from capital gains tax for an individual, favoring long-term buy & hold investment strategies.
The buyer must also pay a property transfer tax of 4% on the property’s value (with adjustments above one billion HUF, far above usual prices in Gyöngyös). On the other hand, unlike many European countries, Hungary does not have a uniform national annual property tax. Recurring taxes are decided at the municipal level, within limits set by law (e.g., maximum 1,100 HUF/m² or 3.6% of adjusted value for building tax). In many towns, purely residential properties are not subject to this tax; only properties for professional use are.
For an investor in Gyöngyös, the annual holding tax burden is often moderate, especially compared to Western European markets. The tax framework is characterized by a one-time transfer tax, a reasonable flat tax on rents, capital gains exemption after five years of holding, and controlled local taxation.
Financing: why to come to Gyöngyös primarily with equity
The major drawback of the Hungarian market for a non-resident is access to local credit. In theory, foreigners can apply for a mortgage loan from major Hungarian banks (OTP, K&H, Erste, UniCredit, etc.). In practice, institutions remain very cautious, and conditions are significantly tougher than for a resident: required down payments between 30 and 50% of the price, interest rates significantly higher than the best domestic rates, shorter loan terms. Some sources mention rates from 6 to 8%, or even more, for non-residents.
Subsidized programs with advantageous rates (e.g., Otthon Start ~3%) are reserved for eligible Hungarian households (first-time buyers, primary residence). Foreign investors generally only have access to market-rate financing, often more expensive. Most of them therefore buy in cash or use financing obtained in their country of origin (bridge loan, refinancing, etc.).
In Gyöngyös, where prices are anyway much lower than in Budapest, buying with equity often remains the simplest and most profitable option in the medium term. Reasonable leverage, coupled with light taxation and appreciation prospects, can compensate for the lack of significant local bank leverage.
What type of property to target in Gyöngyös?
In the absence of detailed statistics by property type for Gyöngyös, one must extrapolate from what is observed at the country and major city level, then adjust it to the town’s profile. Nationally, demand is particularly strong for apartments under 60 m² in modern buildings, whose prices are rising faster than average. Single-family homes, especially on the outskirts, show more mixed trends, sometimes declining in some counties.
In an urban fabric like that of Gyöngyös, several segments appear promising:
These 45 to 70 m² homes, located in well-connected neighborhoods, meet the specific needs of several types of occupants.
Ideal first home or pied-à-terre for a couple, offering sufficient space without being too expensive.
Close to their workplace, these homes are practical for a local workforce seeking a short commute.
A viable option if the region has higher education institutions, for shared apartments or advanced students.
– Renovated small homes in or near the center, which can interest both permanent tenants and occasionally tourists looking for a base close to cultural amenities and the connection to Mátrafüred.
– Townhouses or small single-family homes near renovated schools, parks, and recreational facilities, targeting particularly families benefiting from the new nurseries, kindergartens, and large playgrounds.
The key, as always in Hungary, remains accessibility: proximity to main roads, quality of public transport, travel time to main employment centers. In Budapest, the best-served neighborhoods offer the highest occupancy rates; it is logical to apply this criterion to Gyöngyös, especially to aim for a solid rental portfolio.
Rental yields: what can one expect in a town like Gyöngyös?
The average gross rental yields for apartments in Hungary hover around 5%, slightly down from previous years (5.78% in 2024). In Budapest, gross yield is generally between 3.5% and 6%, with an average around 4.5 to 5%. In regional towns like Debrecen, Pécs, or Nyíregyháza, figures fluctuate between about 4.9% and 5.5% depending on the size of the homes.
A reasonable gross rental yield to target for a well-positioned property in Gyöngyös.
Management costs are comparable to the rest of the country: a property management agency commonly charges 8 to 15% of collected rents, plus condominium fees, insurance, and possible local taxes. At the Hungarian level, it is considered that the difference between gross and net yield is between 1 and 1.5 percentage points. A 5% gross yield in Gyöngyös can thus become a 3.5 to 4% net yield, excluding leverage effects.
The element that will really make the difference is the town’s ability to continue attracting economic activities and to maintain a stable or slightly growing demography. Recent investments, the opening of the new industrial zone, and the upgrading of urban amenities clearly point in this direction.
A rather favorable regional development framework
Research on the Gyöngyös area indicates that the town is the most developed municipality in its micro-region, with a composite development index rising from 0.59 in 2001 to over 0.71 in 2010. More recent data is not detailed, but the scale of projects funded since then suggests this trend has continued.
This territory benefits from two main assets: the value of its agricultural land and its strategic position in the regional urban framework. For coherent development, cooperation between the state, local authorities, universities, and economic actors is essential. Aware that it cannot finance the necessary investments alone, the town engages in European programs (TOP, EFOP, CLLD, climate mission) to maximize external financial inputs.
For an investor, this ability to attract European funds is a signal of institutional solidity. Since Hungary’s accession to the EU in 2004, over 10 billion forints worth of projects have been realized in Gyöngyös with European funds, the town itself contributing about 1 billion. This financial leverage has enabled the multiplication of construction sites without burdening local tax resources with the entire cost.
Risks and points of caution for investing in Gyöngyös
As everywhere else, investing in Gyöngyös is not without risk. Several categories of risks emerge from analyses on Hungary and on emerging or secondary markets.
Prices have tripled in ten years, with recent annual growth of nearly 20% deemed unsustainable by the central bank. A correction is possible in case of economic downturn or high interest rates. It is therefore prudent to avoid over-leveraging and to favor the acquisition of well-located, easily rentable properties rather than speculative bets.
Next, the local risk linked to market depth. Gyöngyös is not Budapest: the number of transactions is limited, liquidity is lower, and exiting an investment may take more time, especially in a downturn. Hence the importance of selecting a property matching broad demand: standard-sized apartments, neighborhoods attractive to families or industrial zone employees, proximity to renovated schools or sports facilities.
The Hungarian real estate market presents classic risks for a foreign investor: difficulty accessing local financing, volatility of the forint (impacting returns in euros), and complexity of the legal framework in case of dispute. Although registration in the land registry offers legal security, judicial procedures are heavy. It is therefore crucial to have titles verified by a lawyer, obtain an updated extract from the registry, and avoid any deposit payment before this verification.
Finally, the broader macroeconomic environment should not be ignored: Hungary has seen an increase in interest rates, significant inflation, and depends on a sometimes unstable geopolitical context. That said, inflation is moderating, real wages are rising again, and support programs for homeownership and housing inject considerable capital into the real estate sector, creating a foundation of sustainable demand.
How to practically organize for a project in Gyöngyös?
Practically, a foreign investor wanting to position themselves in Gyöngyös would do well to follow the modus operandi recommended for any acquisition in Hungary.
The first step is to precisely define their strategy: long-term rental yield targeting local employees and families, betting on long-term appreciation with a sale after 7 to 10 years, or a combination of both. With average prices in the provinces much lower than in Budapest, it is possible to build a small portfolio of properties in Gyöngyös for a budget equivalent to a single medium-sized apartment in the capital.
The second step is to select a reliable agency or intermediary, ideally accustomed to working with foreign clients, even if large networks are often more focused on Budapest. Essential criteria to check are: official registration, proven experience, transparency on fees (generally between 3% and 5%), quality communication, and the ability to provide a complete file including the title deed, condominium charges, and information on any building works.
Then comes the most critical phase: legal due diligence. In Hungary, the lawyer is at the center of the process. They must verify the exact status of the property in the land registry (ownership, mortgages, easements, charges), check for the absence of condominium debts that could follow the property, ensure the building complies with zoning rules, and that the use (residential, commercial, mixed) matches the buyer’s project. Without this work, the investor is exposed to the classic pitfalls of the market: hidden charges, title issues, overvaluation, etc.
The real entry cost for a real estate transaction, including all ancillary fees, represents 6 to 8% of the property price.
Gyöngyös, a “second-line” strategy in a front-line country
Seen from afar, Hungary is often summed up as Budapest and Lake Balaton, the main tourist destinations and focus of the specialized press. Yet, the combination of still-low prices, a competitive tax framework, and sustained price increases holds for the country as a whole, with significant regional disparities.
The town of Gyöngyös, Hungary, illustrates the potential of “second-line” towns in an investment strategy. It has mobilized over 13 billion HUF for recent projects, developed a new 150-hectare industrial zone, modernized its cultural amenities, and renovated its schools and nurseries. Committed to European climate policies, it offers more affordable entry costs and interesting long-term catch-up potential, despite having less visibility than Budapest.
The savvy investor will see it as a complement to other positions, or a more cautious starting point than the now very expensive capital. With a clear legal framework, relatively simple purchase rules for foreigners, capital gains exempt after five years, and rents still offering yields around 5% gross, Gyöngyös deserves a closer look from those interested in Hungarian real estate beyond the beaten path.
To succeed in a real estate investment in transforming towns like Gyöngyös, methodical rigor is essential: verification of title deeds, fine analysis of local demand, selection of strategic locations (proximity to jobs, renovated schools, transport axes), and precise budgeting. One must accept that the return on investment is a long-term proposition, especially as the Hungarian market, despite a sharp price increase since 2015, still offers some of the lowest values in the EU, providing an interesting bet on the revitalization of a territory.
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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.
