Premium properties abroad – Where Hungarians buy
A premium property abroad is also an option for you to consider. Lake Balaton is expensive, the prices per square meter in some locations are so high that you can buy property on the Spanish coast, Turkey, France, Italy or even Dubai. These regions can be reached by car or plane, and within a few hours you can enjoy the panorama of your own, foreign luxury house and enjoy your favorite cocktail. In addition, you can be sure that you have made a profitable investment in the long term.
Foreign premium properties
Beach properties are always attractive, because who doesn’t want their own luxury property, a premium apartment building, where you can experience the real Dolce Vita.
Some of the buyers of foreign real estate are “only” looking for a holiday home that they can enjoy with family and friends, while others look at the given region with the eyes of investors, and the driving force behind the purchase of foreign premium real estate is the potential increase in the value of the selected region or city. There are a smaller number of Hungarians on the market who move out for several years due to job opportunities, even with family members and are looking for their own property abroad.
Where do Hungarians shop? Among the beach properties, properties for sale in Spain and Marbella are sought after, but Turkey, Italy and Dubai are also on the list of preferred regions. On the Adriatic, not only luxury yachts are attractive, but also luxury holiday homes.
Development of real estate prices in Balaton
According to real estate market experts, Balaton has been overpriced for years, the purchase price per square meter in frequented places on the north and south coast exceeds HUF 1 million, but this is not the ceiling. Prices per square meter in Tihany range from HUF 1.8-2 million, and if you want the highest level of luxury, you have to pay up to HUF 3.5 million for one square meter.
There are plenty of eye-catching premium properties at this price level, such as this property with a panoramic view of the Aegean Sea in Bodrum, Turkey. Converted for a price of only HUF 1 M per square meter. Surprising, isn’t it?
Investment opportunities abroad
Real estate has always been a good investment, but now, when more and more people are worried about Hungarian inflation, the possibility of investing in real estate is even more appreciated. The leading analysts estimated the Hungarian inflation in September 2022 at around 19-20%, which was the case a long time ago. This is also the reason why many people are looking for investment opportunities abroad.
If we take a risk-free, fixed-interest investment as a basis, such as government bonds, the yield on the 10-year government bond in Spain is 3.211%, while the return on real estate investment is around 10%.
In Turkey, where there are more and more foreign buyers and many investors from Dubai, real estate investment can bring an annual growth of up to 20%, while the government bond yield (10 years) is 12.095%. And we didn’t even calculate the rental income. This can be 5-15%, of course, depending on the location. In France and Dubai, the 10-year government bond yield is nearly 3%, while the yield on real estate investment is between 6-8%.
Spanish beach properties
Although the Spanish real estate market trended downward between 2007 and 2015, the price index has been steadily increasing since 2015. Scandinavian, British, and German investors and buyers were previously attracted by the possibility of acquiring real estate in Spain, but in recent years the number of Hungarian buyers has also been increasing. The excellent climate, the great Spanish food, the incredible Andalusian feeling of life and, by the way, the possibility to reach within 3.5 hours add to the list of advantages.
Properties for sale in Marbella
In Marbella, you can buy a luxury property with up to 6 bedrooms and 8 bathrooms at a price of HUF 2.3 million per square meter. This makes some Budapest or Balaton regions more expensive. The villa has a wonderful view of the sea, its furnishings are individually made based on the designs of a French interior designer. Marbella is one of the most popular tourist destinations in Spain, so the property here is also in demand among tenants.
Dubai properties for sale
Dubai is amazing and incredible. A special gem of the Middle East. Anyone who has been there once will surely want to return. And if we say that you can buy a newly built 5-room villa in a frequented residential area for a little more than HUF 1m/square meter, you might think it’s a bluff. It’s not.
The 180 square meter premium Dubai property for sale costs USD 480,000, which is roughly HUF 192m. We talked about this when we said that foreign premium property can now be owned by anyone, including you. In addition, this location can be reached by a 5.5-hour flight.
Buying real estate in Turkey
Within Turkey, properties in the capital, Istanbul, as well as villas and apartments located on the coast of the Mediterranean Sea, are also in demand. 250 m2 luxury apartment in Istanbul approx. It can be purchased for HUF 1.5m per square meter, and you can enjoy the view of the Bosphorus in your own property, but the beach is also within walking distance.
In the last 10 years, the European housing price index has risen the most in Turkey. Annual price increases of 10-13% have also been typical in recent years. In addition, Turkish inflation is also staggering, more than 80% in the fall of 2022.
Hungarian buyers prefer coastal properties the most. They can use them themselves for rest and vacation, and when they are not there, they can be rented out to other tourists or even acquaintances.
The chart below illustrates the change in the French housing price index between the summer of 2019 and the summer of 2022. An annual value increase of nearly 10% can be expected.
Premium properties abroad – French house price index change
Beachfront properties for sale in Italy
There are also seaside properties with excellent properties in Italy, but the area around Lake Garda is also a sought-after location. The price of an average house exceeds EUR 500,000.
The figure below shows that Italian real estate prices have increased by roughly 10% in the last 2 years, which means an average increase of 5% per year.
Premium properties abroad – Italian house price index change
Luxury holiday homes on the Adriatic
The Adriatic is a region very popular with Hungarians. A lot of people go to Croatia and Italy on vacation, and sometimes they long for a two-family life, which is why they buy a vacation home on the Adriatic, or rent it out for investment purposes only.
If you are looking for a luxury holiday home on the Adriatic, or anywhere in Europe, or perhaps in Dubai, entrust yourself to a well-prepared team! Buying and renting foreign real estate requires up-to-date tax and legal knowledge. “Ignorance” of local regulations, elements of legal regulations, or managing the rental remotely can also cause problems.
In addition to properties in Budapest and Balaton, Kenway Real Estate, based in Budapest, has expanded its range to include premium category properties in Turkey, Spain, and Dubai. It provides its clients with professional background support for buying and selling, as well as legal and tax support, in addition to language assistance. You can avoid the negative impact of the forint depreciation if you become the owner of a valuable, foreign luxury house or premium apartment house!