Published on and written by Cyril Jarnias
In southeastern Hungary, on the Great Plain, Hódmezővásárhely rarely grabs the spotlight like Budapest, Debrecen, or Szeged. Yet, behind its low profile, the city combines several ingredients that are attracting growing investor interest: prices significantly below the national average, a large housing stock, major infrastructure projects, a logistics sector in full development, and transparent local taxation.
For a French-speaking investor, this well-equipped small Hungarian town offers neither the spectacular returns nor the liquidity of a major center like Debrecen. However, it can represent a diversification strategy or a long-term bet on a region.
A Very Affordable Real Estate Market in a Fast-Rising Country
While Hungary is considered one of the EU’s most dynamic real estate markets, Hódmezővásárhely stands out with significantly lower prices.
The average increase in residential prices in Hungary in 2025, according to various aggregated sources.
In this tense national context, Hódmezővásárhely appears as a cheap exception. Market data indicates that buying a property there costs on average 44% less than the Hungarian average and 30% less than the average for the county the city belongs to. In other words, for the same budget, the purchasable area is much larger than what is offered by Budapest or large regional cities.
Price Comparison: Hódmezővásárhely vs. Hungary
The price gap can be summarized as follows:
| Indicator | Hungary Average (approx.) | Hódmezővásárhely |
|---|---|---|
| Average price per m² of housing (national) | ~850,000 HUF/m² | 498,977 HUF/m² |
| Gap vs. national average | — | 44% cheaper |
| Average property price | ~45,000,000 HUF | 48,482,995 HUF (larger properties) |
| Average apartment size (city) | — | 106 m² |
| Average apartment size (overall stock) | — | 76 m² |
The average price per square meter in the city, around 499,000 HUF, remains well below the roughly 1.35 million HUF/m² observed in Budapest at the start of 2026. Even compared to the average for cities in the Southern Great Plain, where the median price for older properties is around 331,000 HUF/m², Hódmezővásárhely positions itself in a “low cost” niche on a national scale.
Despite lower starting levels, the local real estate market is not stagnant. Over the last six months, the average price in the municipality has increased by about 7%, showing that the national dynamic is eventually reaching the city.
Socio-Demographic Portrait: A Small Town Aging and Shrinking
Investing in real estate in Hódmezővásárhely requires a close look at the demographic reality. The city is typical of a medium-sized Hungarian regional center facing population decline and aging.
The municipal population has fallen from a peak of 54,505 inhabitants in 1980 to about 41,634 people in the 2022 census. Recent demographic estimates hover around 43,000 to 44,000 inhabitants, but the underlying trend remains downward. Projections up to 2025 anticipate a continued decline, with an average annual rate of about -0.7 to -0.8% in recent years.
Number of inhabitants aged 65 and over in the city in 2022, representing nearly one in five residents.
At the district level, a larger area with 51,120 inhabitants, the structure is comparable: about 8,889 people aged 0 to 17, 30,629 aged 18 to 64, and 11,602 people aged 65 and over.
District Demographic Summary
| Age Group (district) | 2022 Count | Approximate Share |
|---|---|---|
| 0–17 years | 8,889 | ~17% |
| 18–64 years | 30,629 | ~60% |
| 65 years and over | 11,602 | ~23% |
| Total district | 51,120 | 100% |
For an investor, this means that demand for rental housing from “young professionals” or students is structurally weaker than in Budapest, Debrecen, or Szeged, but the need for senior-friendly housing, affordable small units, and family homes remains significant.
A Vast, Unsaturated Housing Stock Mostly in Private Hands
Hódmezővásárhely does not lack housing. There are approximately 20,190 residential buildings, with 18,272 occupied dwellings and 1,908 unoccupied dwellings. The vacancy rate is about 9.5%, which is significant but not exceptional for a small town slowly depopulating.
Housing is mostly owned by private individuals: nearly 19,180 units belong to private persons, and only 728 are held by the municipality. In 16,538 cases, the owner occupies the property themselves, and about 1,468 dwellings are rented, meaning the private rental stock represents around 8% of housing.
The building structure remains largely dominated by single-family houses, typical of the Great Plain.
Hódmezővásárhely Building Stock
| Type of Residential Building | Number of Buildings |
|---|---|
| Single-family houses (1 dwelling) | 12,338 |
| Buildings with 2–3 dwellings | 462 |
| Buildings with 4–10 dwellings | 230 |
| Buildings with 11+ dwellings | 289 |
| Total residential buildings | 20,190 |
The housing stock has grown slightly in recent years: between 2009 and 2014, the number of dwellings increased from 19,616 to 20,210, a growth of 3% in five years, with about 594 additional units. In other words, new construction exists but remains fairly modest on a national scale.
The market is dominated by large single-family houses (127 m² on average), suitable for families but less optimal for high-yield furnished rentals. Standard apartments in small condominiums, highly sought after in Budapest, are much rarer here due to the low share of collective housing.
Rental Yields: A Paradox Between Rents and Purchase Prices
On paper, Hungary displays fairly attractive gross rental yields. National studies indicate that, at the start of 2026, the average gross yield for housing is around 6%, with a general range of 5 to 7.5% depending on the city and property type. Net of expenses, most landlords are between 3.5 and 5%.
In large regional cities like Debrecen or Szeged, gross yields of 6 to 7.5% are not uncommon, and Budapest still offers on average around 4.5 to 5% depending on the segment.
Hódmezővásárhely is an exception… in the other direction. Available estimates show surprisingly low gross yields:
– about 1.85% gross for a downtown apartment,
– and 1.60% gross for an apartment outside the center.
Data shows very low rents per square meter relative to sale prices, suggesting gross yields well below the usual 5–6% target for a rental investment in Hungary. This may indicate either very modest rents or statistics based on low transaction volume, moving the investment away from standard recommendations.
Average Rents in Hódmezővásárhely
The collected data give the following orders of magnitude:
| Type of Housing | Location | Average Monthly Rent (HUF) | Observed Range (HUF) |
|---|---|---|---|
| 1-bedroom apartment | Downtown | 199,704 | 140,000 – 300,000 |
| 1-bedroom apartment | Outside center | 155,973 | 110,000 – 210,000 |
| 3-bedroom apartment | Downtown | 337,971 | 200,000 – 600,000 |
| 3-bedroom apartment | Outside center | 265,870 | 180,000 – 400,000 |
Compared to an average price of about $1,526.70/m² downtown and $1,119.58/m² outside the center, these rents result in a particularly high price-to-rent ratio, around 54 years of equivalent rent downtown (price-to-rent ratio of 53.92) and nearly 63 years in the periphery (ratio of 62.68). By comparison, the Hungarian average is much lower, and the dynamic rental markets of Budapest or Debrecen show significantly more favorable ratios (around 15 to 25 years in the most liquid neighborhoods).
This Hungarian town is not suitable for a short-term rental strategy aiming for high yield. On the other hand, its moderate rents and low purchase prices may interest buyers for a primary residence, a legacy investment, or a bet on future capital gains linked to urban development projects.
Financial Accessibility: Local Salaries, Credit, and Purchase Effort
The potential of a local market is also measured by the purchasing power of its inhabitants. In Hódmezővásárhely, the average net salary after tax is around $678.53 per month. If we compare the local real estate price to this income, the price-to-income ratio reaches about 15. Simply put, buying a “typical” home represents the equivalent of 15 years of net income for an average household – a significant effort, especially considering a context of high national interest rates.
The average outstanding mortgage loan represents 139.55% of household income in Hungary.
For a foreign investor, this data has a dual reading. It partly explains the price moderation in small towns: local solvency limits value increases. But it also indicates that household purchase demand may be slowing, weighing on short-term resale. Public subsidized loan programs at 3% reserved for Hungarian first-time buyers improve the situation for locals but are not accessible to foreign investors.
Urban Dynamics: Infrastructure, Transport, and Quality of Life
The great strength of Hódmezővásárhely is not so much in its rental yields but in the volume and nature of public and para-public investments made or planned.
The city benefits from a status as a “city with county rights” and carries a very ambitious 2025–2029 development strategy, centered around mobility, energy efficiency, quality of life, and economic attractiveness. Nineteen projects are funded via the European TOP Plus program, for a total amount of about 9 billion forints, covering areas as varied as urban rehabilitation, improvement of public lighting, modernization of cultural and educational facilities, and stormwater management.
Added to this is a local economic development program valued at 1.5 billion HUF in own resources and 2.6 billion HUF in additional grants, as well as massive EU investments during the 2014‑2019 period, which would have generated some 70 billion HUF in investments in the city, or nearly 500 subsidized projects.
The Hódmezővásárhely – Szeged Tram-Train: Regional Backbone
An emblematic project, the tram-train link between Hódmezővásárhely and Szeged has profoundly changed the city’s accessibility. This hybrid system, allowing Stadler CityLink trains to operate both as trams in the city and as trains on the regional line, now directly connects Hódmezővásárhely to the neighboring metropolis.
The Szeged tram-train project illustrates a deployment spread over several years: feasibility studies date from 2007, followed by detailed plans in 2012. Work began around 2016. The urban tram section was completed in 2020, with trials starting in December. The renewal of the railway line to Hódmezővásárhely was completed in early 2021, allowing the delivery of the trains. Trial operation with an hourly frequency was finally launched in November 2021.
The total investment related to this project exceeds 71 billion HUF, distributed between rolling stock acquisition (nearly 17.6 billion HUF), construction of a depot (over 5 billion HUF), and major renovation of rail and tram infrastructure (nearly 48.6 billion HUF). Hódmezővásárhely thus became the fifth city in Hungary to have a tram.
For real estate, the effect of an infrastructure project plays out over the long term. It improves job connectivity (example: Szeged), increases attractiveness for households wanting to live in a cheaper town while remaining connected to a large job pool, and secures the value of homes located near stops. Even if prices remain modest in the short term, this type of infrastructure forms a solid foundation for potential future revaluation.
Roads, Bypasses, and Cycling
On the road front, Hódmezővásárhely benefits and will benefit from several key projects: widening of National Road 47 to 2×2 lanes along its entire length, northern and eastern city bypasses, reinforcement of secondary axes, improvement of links to Makó and Mindszent, and a more direct connection of the industrial zone to Road 47 via a new access outside the built-up area.
A 16.5 km section of the Hódmezővásárhely–Maroslele–Makó road is to be renovated for about 1.7 billion HUF, while other developments create new collector roads between existing arteries, including integrated bike lanes. A 117 km tourist cycling path around the city is also announced, complementing the densification of the urban cycling network.
Again, the real estate translation will not happen overnight. But the experience of other Hungarian cities shows that neighborhoods better served by public transport or structuring road axes benefit, on average, from a value premium of around 10 to 20% over a period of a few years.
Regional Logistics Hub: A Segment Apart for Investors
Beyond residential, Hódmezővásárhely holds interest for commercial real estate, particularly logistics and light industrial. An emblematic example is the “Hód Real Estate Invest Logistics Centre,” a complex located at 6800 Hódmezővásárhely, Erzsébeti út 8, in an industrial park adjacent to the city’s ring road.
Presentation of the features and availabilities of a modern real estate complex comprising a warehouse and an office building.
The complex offers a total leasable area of over 10,000 m², with 6,969 m² currently available. It consists of a warehouse of approximately 9,100 m² and an office building of 1,000 m².
The warehouse is organized into five distinct halls and is equipped with eight loading bays for optimal operation.
The advertised rents are about €3/m²/month for warehouse space and €4/m²/month for offices.
Building delivered in 2007, offering 24/7 security, video surveillance, surface parking, and interior green spaces.
Its location in the central part of the Southern Great Plain, near the Serbian and Romanian borders, and its connection to the M5 and M43 motorways as well as the future 2×2 lane Road 47, make it an interesting logistics hub on a regional scale, with a catchment area of 1.3 million inhabitants accessible in less than an hour’s drive.
Commercial real estate offers diversification with yields and market dynamics distinct from residential, characterized by low vacancy in good locations, rents indexed in euros, and professional tenants. In Hungary, its importance is highlighted by the fact that nearly 40% of corporate loans are backed by these assets, attracting the central bank’s attention. However, the MNB warns of overcapacity risks in certain segments like offices and logistics in Budapest, requiring rigorous market analysis and a cautious approach before any investment.
Municipal Policies and Residential Projects: Signals for the Future
The municipality of Hódmezővásárhely is proactive in retaining its inhabitants and attracting new households. A significant example is the establishment of a “family plot” program: 22 building plots, from 960 to 1,700 m² (average 1,300 m²), are offered with substantial discounts to local families who wish to build. The plots are serviced, with a land occupancy coefficient of 30%, but with a condition: a house must be completed within three years, otherwise the city can repurchase the land.
This policy aims to encourage young people to stay or return to settle in Hódmezővásárhely, and to densify certain sectors while steering urban form towards single-family housing.
The city is modernizing a stock of 728 municipal apartments as part of a renovation plan aiming to reduce carbon emissions by 40%.
For a private investor, these projects will not immediately translate into direct purchase opportunities, but they gradually improve the quality of the living environment, strengthen the attractiveness of certain neighborhoods, and, in the long run, can create an environment favorable to a price recovery and stabilization of demand.
Local Tax Framework: Property Taxes and Regulatory Environment
Hódmezővásárhely has its own schedules for local taxes under the national law on municipal taxes. The city notably levies:
– a tax on buildings, expressed per square meter,
– and a tax on land, adjusted according to zones.
For buildings, the following rates are notably identified:
| Type of Building (Hódmezővásárhely) | Building Tax (HUF/m²/year) |
|---|---|
| General rate | 720 |
| Garage / car shelter | 600 |
| Workshop / warehouse (extension) | 95 |
| Workshop / warehouse / other professional structure | 1,200 |
| Retail under 200 m² (example bracket) | 1,200–1,300 |
For land, the city distinguishes several zones:
| Zone / Use (examples) | Land Tax (HUF/m²/year) |
|---|---|
| Central zone (Deák Ferenc utca, Petőfi utca…) | 335 |
| Zone II (Dr. Rapcsák András utca, etc.) | 100 |
| Other built-up zones (III–IV) | 90 |
| Undeveloped plot < 1,100 m² in zone III–IV | 10 |
| Landfill, land occupied by a solar power plant | 20–30 |
These amounts, combined with rent levels, weigh between a few percent and around fifteen percent of gross rental income, which remains consistent with national estimates (5 to 15% deduction for recurring taxes and charges). Added to this, for any landlord, are the 15% income tax on net rents (with a choice between a flat 10% deduction or deduction of actual expenses), the 4% transfer tax on purchase (2% above a billion HUF in value, capped at 200 million HUF per property), and, potentially, capital gains tax on resale, which decreases with the holding period until it becomes zero after five years for primary residences.
Corporate tax rate applicable if the investment is held through a corporate structure.
Risk and Return Profile: What Kind of Investor is Hódmezővásárhely For?
In light of the gathered data, Hódmezővásárhely is not suitable for all investor profiles.
For a purely rental investor seeking high cash flow with a standard “buy-to-let” strategy, the gross yields below 2% reported for apartments are prohibitive. Even assuming a margin of error in these figures, it seems difficult to reach the 5% gross considered a reasonable threshold in Hungary, unless finding very specific assets, possibly outside the standard residential segment (logistics, mixed-use buildings, developer operations).
For a legacy or long-term opportunistic investor, several elements argue in favor of studying this market. This preliminary analysis allows for identifying specific opportunities and risks, thus facilitating informed investment decisions aligned with a sustainable investment strategy.
– extremely affordable prices on a national and European scale, with a cost per square meter nearly half the Hungarian average;
– an environment undergoing transformation thanks to massive public investments (tram-train, roads, cultural and educational facilities, hospital, bike paths, industrial zones);
– a strategic geographical position on the Great Plain, at the crossroads of corridors to Serbia, Romania, Szeged, and Budapest, reinforced by regional road and rail projects;
– a residential market mostly composed of large single-family houses, which may appeal to local or cross-border households seeking space at a moderate price.
In return, the main risks to integrate into any analysis are as follows:
– a declining demographic trend and marked aging, which limit internal demand in the medium term;
– a weak culture of large-scale rental investment, with only 8% of dwellings rented, which reduces the depth of the rental market;
– constrained local purchasing power, leading to a ceiling on rents and a high purchase effort for residents;
– potentially low liquidity upon resale, with potentially longer selling times than the national average, especially in an economic downturn.
How to Position Yourself Concretely on This Market?
For a French-speaking investor who nevertheless decides to take an interest in Hódmezővásárhely, the approach should be very targeted.
First, it is essential to clarify the objective: secondary residence, low-cost retirement project, purchase for a family member, land bet linked to infrastructure projects, modest but secure rental investment, or diversification within a larger portfolio already heavily exposed to Budapest and large regional cities.
The city of Szeged presents strong demographic heterogeneity across neighborhoods. The city center (Belváros) concentrates over 20% of the population, with a majority of women and seniors. In contrast, newer neighborhoods like Hódtó, Erzsébet, or Kishomok have a significantly higher proportion of young people (up to 34-41% per district). The choice of property location must therefore imperatively take these differences into account to target a specific tenant profile.
Finally, the foreign investor must integrate the Hungarian regulatory framework: obligation to use a local attorney for any purchase, possible need for an acquisition permit if not an EU/EEA/Swiss citizen, a processing time of 30 to 45 days for such a permit, and monitoring of possible municipal measures on housing purchases by non-residents (even though these measures have so far mainly been used in tourist municipalities or certain districts of Budapest).
For a patient investor, the town offers a diversification opportunity with a low entry cost and a long-term urban evolution perspective, rather than immediate rental yield. It requires an in-depth study with the numbers.
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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.
