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​Buying a renovated house in Hungary: Guide to a good investment

The real estate market in Hungary is increasingly attracting international buyers who want to buy a renovated house in Hungary. You have also decided to do so. Congratulations! This decision offers a mix of cultural charm and modern amenities and is particularly interesting for buyers looking for a unique home.

But before you embark on the adventure, you'll want to make sure you know the best tips to make the purchase go smoothly. In this article, you'll find all the important information you need to find and purchase the perfect renovated home in Hungary based on our experience.

We understand that buying a renovated home can be exciting, but it can also bring some uncertainty. That's why we give you valuable advice and insider tips so you can approach the process with confidence. From choosing the right location to checking the quality of the renovation work and legal aspects, we've got you covered.

Whether you're looking for a vacation home or want to fulfill your dream of permanent living in Hungary, our tips will help you find the perfect renovated home. So, what are you waiting for? Dive into this exciting world of buying a house in Hungary and take the first step to finding your renovated dream home.

What is a renovated house?

A renovated home is a property that has been extensively overhauled to meet modern living standards. These renovations can include structural changes, upgrades to installations and aesthetic improvements. Typical renovations include:

- Replacement of roof, windows and doors
- Replacement of heating and electrical systems
- Modernization of kitchens, bathrooms and floors
- Facade renovation and use of modern insulation materials to improve energy efficiency

These houses are often older buildings that have undergone extensive work to make them as good as new. For example, an old villa built several decades ago can be transformed into an attractive home by renewing the roof, windows, sanitary facilities and electrics.

The renovation can also include the preservation of historical elements that retain the charm of the original building. There are also state subsidies for this in Hungary. 

When renovating, emphasis is often placed on high-quality materials and technological innovations that increase comfort and energy efficiency and raise the standard to that of today's western style.

This means that buyers not only acquire a beautiful home, but also invest in a property that is sustainable and future-proof.

There are many such renovated houses in Hungary, often located in small villages or close to tourist attractions. Renovated farmhouses and vineyard houses in secluded locations are sought after.

Especially in sought-after Balaton regions such as Badacsonytomaj, Tihany, Balatonfüred or Keszthely and the slightly inland regions, such properties can quickly reach higher price levels. The combination of tradition and modern living comfort makes renovated houses particularly attractive to buyers looking for a connection to Hungarian culture without having to sacrifice contemporary amenities.

Advantages of buying a renovated house in Hungary

Buying a renovated home in Hungary comes with numerous benefits that potential buyers should consider. First of all, renovated houses are often ready to move into immediately. This means that you don't have to wait long for renovation work to be completed and can move into your new home straight away. 

This is particularly beneficial for people who don't have the time or resources to carry out extensive renovations themselves.

Especially if you are new to emigrating to a country like Hungary, the language is a significant barrier to finding and managing suitable contractors and tradespeople independently. The good and flexible craftsmen work in Germany, Austria, Switzerland or Slovenia. Those who are still in Hungary have to find a needle in a haystack, i.e. they have to be of good quality and also available. Even then, as a foreigner you are not protected from realizing considerably higher costs than locals with 'foreigner prices'. The icing on the cake is English language skills. Ask us, we have reliable craftsmen in our network.

Another big advantage is the possibility of finding a unique home. In many Hungarian towns and villages, there are historic buildings that have been lovingly restored. These properties often offer a special character and charm that cannot be found in newly built houses. Buyers have the opportunity to acquire a piece of history while living in a modern and comfortable environment.

In addition, buying a renovated house in Hungary can be a good investment. As many of these properties are located in up-and-coming regions, the value can increase over time. Renovated homes are often more energy efficient than their non-renovated counterparts, resulting in savings on running costs. 

Renovation work and its costs

Before buying a renovated home, it is important to be aware of the type of renovations that will be carried out and their cost. Renovation work can range from simple cosmetic improvements, such as painting the walls or replacing floor coverings, to extensive structural changes. The cost of these works can vary greatly depending on the type of renovation and the materials used.

In Hungary, prices for renovation work can be relatively cheap compared to Western Europe in terms of tradesmen's labor costs if you have the right access. However, the cost of building materials has also exploded in Hungary in recent years. Construction costs in Hungary have risen by 93% from 2020 to 2023. See also my article on house price development in Hungary.

For extensive renovations, you should also consider the option of calling in a professional to assess the work. A detailed inspection can help to ensure that the work carried out complies with local building regulations and that there are no hidden defects.

It is also advisable to plan a budget for future renovation work, even if the house has already been extensively renovated. Unforeseen repairs can occur at any time, especially in older buildings. A well-calculated budget helps to avoid unexpected financial burdens and ensures that the quality of living can be maintained in the long term.

The best locations for renovated houses in Hungary

The choice of location is crucial when it comes to buying a renovated house in Hungary. Some of the best locations are characterized by a combination of beauty, convenience and access to important amenities. Popular cities like Budapest offer a variety of renovated homes located in attractive neighborhoods. Here you will not only find a lively cultural scene, but also good public transportation links and a variety of leisure activities.

But smaller towns and rural areas in Hungary also offer excellent opportunities. Places like Eger, Szeged or Pécs and the surrounding areas are known for their historic architecture and charming atmosphere. These towns often have a rich cultural heritage and are surrounded by breathtaking nature. 

Buyers looking for peace and quiet and leisure activities in nature will find numerous renovated properties near vineyards, thermal baths or national parks.

In our experience, renovated houses around Lake Balaton are very popular, especially on the north side of the lake. The closer to Lake Balaton and the more secluded the location, possibly in vineyards, the more expensive the property. Very good locations with renovated houses in vineyards can easily be traded around the million euro mark or more.

In addition, buyers should also pay attention to up-and-coming regions that may not yet be overcrowded. 20 km away from Lake Balaton but still within reach, buildings are often cheaper and there is an opportunity to invest in a region that could increase in value in the coming years. Find out about planned developments and infrastructure projects in the area to identify the best opportunities for your new home.

Tips for choosing a renovated home

Choosing the right renovated home can be a challenging task, but with the right tips, the process becomes much easier. First, buyers should make a list of their priorities. This includes aspects such as:

- Location of the home
- Size of the house
- Size of the plot
- Number of bedrooms and bathrooms
- Outbuildings and garage
- Special requests such as terrace, pool, garden
- Building fabric and condition of renovations

Having a clear idea of your needs helps you to focus your search and find the best options.

As estate agents, we say: Location, location, location and building fabric

Many older houses in Hungary are built with clay, and expert renovations with clay building experience are rare, which leads to later problems with damp in the walls and plinth area.

Houses from the post-war period and the 1970s should also be viewed with suspicion due to the scarcity of good building materials at the time. 

Another important tip is to visit at different times of the day. This will give you a better impression of the surroundings and the lighting conditions in the house. Pay attention to what the neighbors are like and what amenities are available nearby.

A quiet location may be pleasant during the day, but it is important to know what it is like in the evenings and at weekends. It is completely normal in rural areas in Hungary for chainsaws, lawnmowers and lawn trimmers to be in operation at 7:30 a.m. or at midday, even at weekends. As a foreign neighbor, you will not be able to change this.

It can also be helpful to get support from a real estate expert. An agent with regional knowledge not only has access to a wide range of listings, but can also provide valuable information about the market and the surrounding area. They can help you identify hidden costs and ensure that all legal aspects of the purchase are taken into account.

Trust their knowledge and experience to help you make the best possible decision.

How to find a renovated house in Hungary

Finding a renovated house in Hungary can be done in a number of ways. One of the most effective methods is to use online real estate portals or websites of market-leading agents with a large selection that are not necessarily found on the major online portals. These platforms allow buyers to search according to specific criteria, such as price, size and location.

It is advisable to check regularly for new listings, as the real estate market can be fast-moving. With us, you will always find around 400-500 properties that we personally manage. Every month there are new properties, including renovated houses or houses with renovation needs and potential

As a follower on our social media, you will always be informed about new properties.

If you speak the language, local newspapers and magazines can also be valuable sources for finding renovated houses. 

Legal aspects of buying a renovated house

Buying a renovated house in Hungary also involves a number of legal aspects that buyers should be aware of. First of all, it is important to check all the necessary documents proving the condition of the property. These include land registry extracts, building plans and permits for the renovation work carried out. These documents ensure that all changes have been carried out legally and that the house has no hidden defects. In reality, building plans or floor plans are often no longer available for older houses. It is up to the buyer to decide whether it is worth the cost of having an architect draw up floor plans.

Hungarian law protects buyers from deliberately concealed defects on the part of the seller, provided the seller is aware of them. However, it is difficult to prove this knowledge. Therefore, check all eventualities personally on site and also take a look behind the cupboard. If in doubt, hire a building assessor.

Another important step in the legal process is the purchase contract and subsequent entry in the land register. In Hungary, real estate purchase contracts do not necessarily have to be executed by a notary. It is more common to instruct a lawyer with the contract, who is obliged by law to take a neutral position in relation to the buyer and seller. It is advisable to choose an experienced lawyer who is well versed in local real estate law and who draws up the contracts in the local language and your own language.

You should also be aware of your tax obligations. In Hungary, the purchase of a property is subject to a 4% land transfer tax and marginal fees for entry in the land register. It is customary in Hungary for the buyer to pay the lawyer's fees, which usually amount to 1% of the purchase price.

Financing options for the purchase of a renovated house

Financing a renovated house in Hungary will be almost impossible for foreigners. 

Local banks only offer loans if the buyer has been in the country for a longer period of time and can prove a long-term stable income. With the current interest rates, however, a loan in Hungary is hardly worthwhile. Once the house has been purchased, a mortgage can of course be registered.

Banks in German-speaking countries generally do not finance foreign real estate, unless it is via a rather expensive consumer loan.

So in the end, the most common option is to generate your own cash in order to purchase the property of your dreams. If you already own a property, you may be able to use the capital from the sale or rental of this property to finance the purchase of the renovated home. 

Expert tips for buying a renovated house in Hungary

To successfully complete the purchase of a renovated house in Hungary, it is helpful to follow some expert tips. First of all, you should prepare well for the purchase. 

1. find out about the local real estate market, price trends and the best neighborhoods. Thorough research will allow you to make informed decisions and find the best deals. A good way to start is to spend a few weeks on vacation in the region of your choice.

2. be patient. Buying a property is a significant step that requires time and consideration. Take the time to view and compare different properties to get a feel for the market. Don't feel under pressure to make a quick decision. A thoughtful purchase will pay off in the long run and help you find a home that meets your needs.

3 Finally, it is advisable to listen to the opinions of professionals. Whether it's estate agents, solicitors or building surveyors, expert knowledge can help you spot potential problems and ensure the buying process goes smoothly. Rely on the experience of others and use this information to your advantage to make the best decision for your new home.

Conclusion

Buying a renovated home in Hungary can be an exciting and rewarding experience that brings both challenges and opportunities. By educating yourself on the various aspects of the buying process, from choosing the right property to the legal and financial considerations, you can ensure that your dream home doesn't just remain a dream, but becomes a reality.

The advantages of a renovated home, such as immediate occupancy, the charm of historic buildings and the opportunity to invest in up-and-coming regions, make these properties particularly attractive. With the right preparation, patience and valuable tips from experts, you are well equipped to immerse yourself in the exciting world of buying real estate in Hungary.

Use the information from this article to begin your search for the perfect renovated home. Whether you are looking for a vacation home or a permanent home, Hungary has a variety of options waiting to be discovered. Good luck with your project and welcome to your new home!

If you have any questions or need help, don't hesitate to call us.

Author: Dr. Peik Langerwisch

After completing his studies in business administration with a degree in business administration and a magna cum laude doctorate in management, the author worked for twenty years in global management consultancies and banks and has now been using his expertise to act as a real estate agent for real estate in Hungary for several years.

Brief overview of expertise and career