{"id":30852,"date":"2021-10-20T07:46:17","date_gmt":"2021-10-20T07:46:17","guid":{"rendered":"https:\/\/constructionpapers.hu\/?p=30852"},"modified":"2021-10-20T07:46:17","modified_gmt":"2021-10-20T07:46:17","slug":"news-about-buying-an-apartment-in-budapest-what-to-expect-according-to-the-latest-changes-on-the-real-estate-market","status":"publish","type":"post","link":"https:\/\/constructionpapers.hu\/en\/construction\/news-about-buying-an-apartment-in-budapest-what-to-expect-according-to-the-latest-changes-on-the-real-estate-market\/","title":{"rendered":"News about buying an apartment in Budapest \u2013 what to expect according to the latest changes on the real estate market"},"content":{"rendered":"

Several changes have taken place in the Hungarian real estate market recently, particularly in relation to apartments in Budapest. Firstly, due to a recent legislative amendment, the Hungarian government has just obtained a right of first refusal in respect of apartments and other real properties located in certain World Heritage sites in Budapest. Secondly, a recent study projects a price increase of almost 5 % on the real estate market in the near future. And finally, a recent legislative amendment mandates electrical inspections of all real properties, i.e. houses and apartments, that are sold or rented.<\/strong><\/p>\n

Right of first refusal in favour of the Hungarian government<\/strong><\/p>\n

In Pursuant to Hungary\u2019s World Heritage Act and its latest amendment, the Hungarian government obtained a right of first refusal in respect of real properties with a floor area of more than 200 square metres and other properties registered as residential houses that are located within the boundaries of the World Heritage Sites in Budapest (i.e. Danube banks, Buda Castle District, Andr\u00e1ssy street, etc.).<\/p>\n

In this context, the right of first refusal means that if the owner of a property that meets the above criteria sells the property, the government can, within eight days of being informed of the sale, step in and replace the buyer with a unilateral declaration addressed to the seller, under the same conditions as set out in the proposed sale agreement with the prospective buyer.<\/p>\n

It could be argued that this provision does not affect the rights of owners significantly, but it can cause some disruption and create uncertainties for potential buyers, as we are talking about thousands of extremely well-located properties that are also excellent for investment. In our experience, it is more difficult to find buyers in such a legal situation, and certain risks may arise (in particular, such as loss of time, costs, or failure to purchase buildings or flats together).<\/p>\n

Price increase on the residential real estate market<\/strong><\/p>\n

The first wave of the epidemic significantly worsened the outlook for the real estate market. The second and third waves did not have a negative impact, and the outlook has been gradually improving since last year\u2019s low point in the second quarter. Prices for pre-owned homes in Budapest could rise by 4-5% over the next 12 months, and prices for new homes by 7-8 %, according to a recent Hungarian survey<\/a>.<\/p>\n

The spectacular rise in household incomes and state subsidies for families with children have created a strong stimulus on the demand side, where investors are also to be reckoned with due to soaring inflation.<\/p>\n

There may be as much as 74,000 families that are sure to build or buy a home and 180,000 more that are likely to do so in the next year (2022), according to a survey published in September 2021.<\/p>\n

Mandatory electrical inspection in the case of sale and lease<\/strong><\/p>\n

As a result of an amendment to the relevant legislation in 2020, an electrical safety inspection is now mandatory even in the case of the sale and lease of residential real estate.<\/p>\n

The electrical safety inspection is a qualified inspection designed is to reveal whether the standards and technical regulations governing the electricity network are met with regard to electrical equipment.<\/p>\n

The relevant regulation mandates such an electrical safety inspection when an apartment in a residential building is rented out or there is a change in its ownership (sale; exchange of properties; gifts, etc.).<\/p>\n

The electrical safety inspection is clearly in the interest of both parties involved in a real estate transaction.<\/p>\n

However, there are cases where an electrical safety inspection of a residential property is not mandatory, such as when:<\/p>\n