Spotlight On Luxury Second-Home Market In Budapest

Budapest, Hungary’s magnificent capital on the Danube, has emerged as one of Europe’s most exciting destinations for luxury property investment. Whether you’re looking for a second home in a culturally rich city or aiming to expand your investment portfolio with high-yield real estate, the country offers both lifestyle and profit potential.

The rise of luxury homes in Budapest

Budapest is drawing increasing attention from international buyers thanks to a perfect storm of factors: rising property values, attractive yields, and an unbeatable combination of history, elegance, and modern infrastructure. According to market research, luxury properties in Budapest’s prime districts (such as Districts I, V, and XII) now command between €4,500 and €6,000 per square metre, with new builds offering modern amenities, smart tech, and panoramic city views.

Top reasons to buy

Strong capital growth: Premium properties have seen double-digit price increases in recent years.
High rental yields: Short-term and long-term lets offer up to 7% annual returns in top districts.
Golden Visa opportunity: New investment residency schemes allow property buyers to secure EU access.
Lifestyle perks: Thermal spas, Michelin-starred dining, and cultural landmarks right at your doorstep.

Most desirable areas include:

- District I (Castle District): Historic charm and unbeatable views of the Danube.
- District V (Inner City): The heart of Budapest’s business and cultural life with prestigious residences.
- District XII (Hills of Buda): Exclusive villas and private mansions in a leafy environment.
- District XIII (Marina and Riverside areas): Popular with expats and investors, offering sleek new developments.

Is Budapest property a good investment in 2025?

Yes. With stable growth, EU location, and a growing demand for rentals and resales, luxury homes in Budapest offer attractive ROI.

Can foreigners buy property in Hungary?

Yes. Foreigners can buy property in Hungary with a permit (easily obtained). EU citizens face fewer restrictions.

What are the buying costs?

Expect to pay 4% in taxes and legal fees. Luxury developments may charge additional service or maintenance fees.

What rental yields can I expect?

Premium districts offer 5–7% gross annual yield for well-located properties.

Are there restrictions on short-term rentals?

Some districts have begun regulating Airbnb-style lettings. Long-term rentals remain lucrative and stable.