Hungary’s Second Home Market

Published on October 4, 2025 and written by Cyril Jarnias

Hungary, with its rich history, vibrant culture, and rapidly growing economy, is emerging as a prime destination for real estate investors seeking opportunities in the second home market. This article explores the benefits, best locations, and investment strategies in this Central European country, offering a comprehensive overview of the potential represented by the Hungarian second home market.

Hungary: An Undiscovered Gem for Savvy Investors

Investing in a second home in Hungary offers numerous advantages that make it particularly attractive for international investors. Here are the main reasons why Hungary is a destination of choice:

A booming real estate market: Since joining the European Union in 2004, Hungary has experienced sustained economic growth, resulting in steadily rising property prices. This trend offers interesting prospects for medium and long-term capital gains for investors.

Still very affordable prices: Despite this growth, property prices in Hungary remain significantly lower than in many Western European countries. This accessibility allows investors to acquire quality properties with relatively modest initial capital, opening the door to potentially high returns.

Favorable tax framework: Hungary offers a tax-friendly environment for real estate investors, with competitive tax rates and simplified procedures for foreigners. This attractive tax policy helps maximize investment profitability.

Growing tourism potential: Hungary, and particularly its capital Budapest, attracts an increasing number of tourists each year. This influx creates lucrative opportunities for seasonal rental of second homes, especially in urban areas and tourist regions.

Political and economic stability: As a member of the European Union and NATO, Hungary benefits from political and economic stability that reassures foreign investors. The country has also shown resilience in the face of recent economic crises, strengthening its position as a safe investment destination.

High quality of life: Hungary offers excellent value for money in terms of cost of living, healthcare, and education. These factors make it an attractive destination not only for investors but also for expatriates and retirees seeking a second home.

Second Home Investment Hotspots in Hungary

Hungary offers a diversity of attractive destinations for second home investment, each with its unique characteristics. Here’s an overview of the most promising areas:

Budapest, the Pearl of the Danube: The undisputed capital and jewel of Hungary, Budapest concentrates the majority of investment opportunities. The city stands out for:

– Its historic center listed as a UNESCO World Heritage Site – Strong rental demand, both for long-term and seasonal rentals – Popular neighborhoods like District V (downtown), District VI (theater district), or District VII (Jewish quarter)

Lake Balaton, the “Hungarian Sea”: The largest lake in Central Europe, Balaton is a popular resort destination offering:

– An expanding second home market – Investment opportunities in towns like Siófok, Balatonfüred, or Keszthely – High potential for seasonal rentals during the summer period

Debrecen, the “Calvinist Rome”: The country’s second-largest city, Debrecen is experiencing rapid development thanks to:

– Its renowned university attracting many international students – Its rapidly growing industrial park – Property prices still very attractive compared to Budapest

Szeged, the “City of Sunshine”: Located in the southern part of the country, Szeged stands out for:

– Its mild and sunny climate – Its remarkable Art Nouveau architecture – A dynamic economy driven by industry and research

Pécs, the City of Many Faces: A former European Capital of Culture, Pécs attracts investors thanks to:

– Its rich historical and cultural heritage – Its geographical location close to Croatia, ideal for cross-border tourism – A developing real estate market offering opportunities at competitive prices

Winning Strategies for Investing in Hungarian Second Homes

Investing in a second home in Hungary requires a thoughtful and strategic approach. Here are the key steps and tips for a successful investment:

1. Clearly define your objectives – Personal use, seasonal rental, or long-term investment? – Available budget and expected return – Investment horizon (short, medium, or long term)

2. Choose the right location – Study local real estate market trends – Analyze the tourism and economic potential of the area – Consider accessibility and surrounding infrastructure

3. Select the right type of property – Downtown apartments for short-term rentals – Houses or villas for family use or seasonal rental – New properties or those needing renovation depending on your skills and budget

4. Master legal and tax aspects – Familiarize yourself with Hungarian real estate ownership laws – Consult a local lawyer specialized in real estate – Inquire about taxes applicable to non-residents

5. Finance your acquisition – Explore local or international financing options – Compare rates and conditions from different banks – Consider the tax implications of your chosen financing

6. Manage your property effectively – Choose direct management or hire a local agency – Ensure regular property maintenance – Comply with local rental regulations

7. Optimize profitability – Adapt your rental strategy according to season and demand – Invest in quality furniture and equipment – Offer additional services to stand out from the competition

• Practical advice: Prioritize properties located in areas with high tourism or economic potential to maximize rental opportunities and capital gains.
• Tax tip: Inquire about tax treaties between your country of residence and Hungary to avoid double taxation.
• Important consideration: Make sure you fully understand local rules regarding seasonal rentals, which may vary by municipality.

Rental Yield: Promising Figures for Hungarian Second Homes

The Hungarian second home market offers attractive profitability prospects for investors. Here are some concrete examples of rental yields in different regions of the country:

Budapest, the beating heart of Hungary – 60m² apartment in District V (downtown): – Average purchase price: €250,000 – Annual rental income (short-term rental): €20,000 – Gross yield: 8%

Siófok, the “capital” of Lake Balaton – 120m² villa near the lake: – Average purchase price: €200,000 – Annual rental income (seasonal rental): €15,000 – Gross yield: 7.5%

Debrecen, the booming university city – 50m² apartment near campus: – Average purchase price: €100,000 – Annual rental income (long-term rental): €6,000 – Gross yield: 6%

Pécs, cultural gem of the south – 80m² townhouse in the historic center: – Average purchase price: €120,000 – Annual rental income (mixed short and long-term rental): €8,400 – Gross yield: 7%

Eger, thermal and wine city – 70m² apartment in a thermal complex: – Average purchase price: €110,000 – Annual rental income (seasonal rental): €7,700 – Gross yield: 7%

It’s important to note that these figures are averages and may vary depending on factors such as exact location, property quality, rental strategy, and property management. Additionally, these gross yields do not account for expenses, taxes, and management fees.

Factors influencing profitability:

– Seasonality: Seasonal rentals, particularly around Lake Balaton or in thermal cities, can offer very high returns over short periods. – Location: Properties located in city centers or near tourist attractions generally achieve the best yields. – Property quality: Modern, well-equipped apartments rent more easily and at higher prices. – Management method: Effective management, whether direct or through a local agency, can significantly impact profitability.

Conclusion: Hungary, a Promising Market for Second Homes

The Hungarian second home market presents considerable potential for savvy investors. With its still affordable property prices, favorable tax framework, and growing tourism appeal, Hungary offers a unique combination of investment opportunities and quality of life.

Whether for a pied-à-terre in vibrant Budapest, a villa by Lake Balaton, or an apartment in a booming university city, the diversity of options allows every investor to find a property matching their objectives and budget.

The attractive yields, reaching up to 8% gross in some regions, demonstrate the potential of this market. However, as with any real estate investment, a thoughtful approach and good understanding of the local market are essential to maximize chances of success.

Hungary, with its rich cultural heritage, dynamic economy, and strategic position in the heart of Europe, is establishing itself as a destination of choice for investors seeking diversification and attractive returns in the second home sector.