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Where to find cheap properties in Hungary?

By bencel
November 23rd at 9:59am

Hungary, being a landlocked country with many neighbouring countries has always been a place for people to traverse when they were travelling from South to North or East to West. At the same time, its prime location in central Europe enables Hungarian citizens to conveniently move to the surrounding countries if they don’t like the current atmosphere or they want to change their workplace. Along with many other factors, the fact that Hungary borders Austria has an indirect influence on real estate prices in the country. I was interested whether there is a bias between property prices near the Austrian border in Hungary and I decided to do a short analysis for those who are interested in buying real estate in Hungary.

If you were born in Hungary and you graduate from a Hungarian school, most likely you will be looking for a job in Hungary. Some high schools have German language courses and those who can speak German, have a significant advantage over those who do not. The main reason for this is the proximity of the German speaking Austria. If you are a fresh grad and you are looking for a job in Budapest for example you might as well compare the salaries in Vienna with those offered by Hungarian companies. The difference is huge and many job seekers rather learn some German in order to get by in Austria and earn money there, instead of staying in Hungary.


Well, Budapest is located almost in the middle of the country and it is not straightforward to look for a job in Austria if you live in the capital, but the closer you live to the Austrian border, the more obvious it gets for you to seek employment in the Austrian capital for example.



Interestingly, people living in the East of Hungary would never ever consider working in Ukraine or in Romania. Those who live in Debrecen or Nyíregyháza (these are larger cities located in the East of Hungary) rather than dreaming of working for a Ukranian company, they usually make plans to move to the capital or even further inside the EU.


As a result, properties in the East of Hungary are always less popular than properties near the Austrian border. Cost of living follows the same trend. A loaf of bread is always less expensive in Nyíregyháza, which is next to the Ukranian border, than in Győr, which is less than 2 hours away from Vienna.


Nyíregyháza is one of the most populous cities in the East of Hungary, with 116.799 in 2019. Most of its citizens are Hungarians, but there are some settlements of Ukranian, German and Romanian people as well. The largest corporations in the city are Lego Manufacturing Kft. and Michelin Hungária Abroncsgyártó Kft. and they employ over 1000 people. Nevertheless, the unemployment rate is one of the highest in the entire country. In 2018, among 82.900 people capable of working, 3.190 were unemployed. The unemployment rate in Nyíregyháza was 3.85% in 2018, which dropped significantly in recent years, considering that it was almost 10% in 2012.


This can give you some kind of hint if you are looking for cheap properties in Hungary. There are at least two places where you will not find cheap real estate. The West of Hungary and Budapest. If you want to buy cheap properties in Hungary, you should find them near the Ukranian and the Romanian border.


I believe that numbers tell you much more than letters, so I tried to find out the difference between property prices in the West of Hungary and in the East of Hungary numerically. In order to do that, I used real market data from two cities. Győr is a representative city from the West of the country and Nyíregyháza is a city from the East of Hungary.


The following analysis is based on real estate market data made available by ingatlan.com. I defined a few floor size points from 30 m2 to 100 m2 and I searched for apartments for sale both in Nyíregyháza and in Győr.



Usually, when you do a search on ingatlan.com, it returns you the first 20 properties that satisfy the given criteria and if there are less than 20 properties, you will get less. I calculated the average of these property prices and I drew the following chart in order to compare real estate prices in the two cities:


Property prices in Győr and Nyíregyháza with respect to floor size.


The slope of the two curves is almost identical, so unlike in district 5 in Budapest, there is no over appreciation of large properties in any of the cities for a given floor size.



The cheapest property in this comparison turned out to be $42.599 on average in Nyíregyháza, which is a 30 m2 apartment. You would have to pay $58.847 on average for the same size in the West of Hungary.


You can also see that properties cost significantly more regardless of their size in the West of Hungary than in the East of Hungary.


If you are planning to buy a large apartment of 100 m2, you would have to pay $97.384 on average in Nyíregyháza and $151.202 in Győr. This means that 100 m2 properties would cost you 50% more in the West of Hungary than in the East of Hungary.


Contact me on Whatsapp if you want to learn more about Hungary at +36 30 831 69 72. Thank you for reading!



Content: LB


Illustration: baidu.com

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