Introduction of Hungary
HUNGARY
Member of European Union at the heart of Middle Europe
Form of government: Parliamentary Republic
Membership in International Organization:
European Union, NATO, UN, IMF, OECD, WTO
Capital: Budapest
Population: 9.8 million people
Area: 93 030 km2
Time zone: GMT +1
Currency: Forint (HUF)
Hungary
More than 1000-year history in the safe of Carpathian Basin
Hungary
Independent Parliamentary Republic since 1989 in Middle Europe at the heart of Carpathian Basin. Its capital is Budapest.
Demography
With its 9.8 million inhabitants, it is the world’s 93th most densely populated country, the population density is around 106 people/km2. Almost all religious inhabitants are Christian.
Political structure
János Áder has been President of the Republic since 2012.
Since 2010 the present Prime Minister gained 2/3 majority for his centre-right party (Fidesz) on three successive elections (most recently in 2018). One of the main elements of government party politics is to fight against illegal migration. In 2015 physical closing of borders was built on Hungarian-Serbian and on Hungarian-Croatian border in order to prevent illegal migration.
Environment
Hungary’s climate is temperate climate with 4 separate seasons, but Mediterranean climate becomes dominant more often in certain periods.
The main temperature is between 10 - 11°C, in winter there is 0°C, in summer months there is around 25°C, with 2000 – 2500 sunny hours a year. The yearly amount of precipitation is temperate, it is around 500 - 750 mm, the country is a temperate region according to the average wind speed, as well. The extreme weather conditions and earthquakes are very rare.
Hungary
Advanced transport, fast economical grow with additional closing up potential.
GDP growth
Increasing disposal income per capita.
GDP/per capita (PPS) in 2018 ( thousand EUR )
Hungary
Favourable macroeconomic environment, relative stabile rate between 2015 and 2019.
EUR/HUF Rate
Expected in the end of 2021: 340.00
CHF/HUF Rate
2019 year-end: 304.39
Unemployment rate
Inflation
Hungarian real estate market
Fastest increasing, but relative low prices in the European Union
Increasing real estate prices after deducting inflation
(first quarter of 2007 = 100%)
Between 2015 and 2019 an average Hungarian real estate investment resulted average 13% yield a year above the inflation!
Additional future factors that conducive real estate market value
Fast GDP growth
According to expectations, real general economical growth corrected with the inflation (GDP) will be higher by 2-3% than in countries of Euro area.
The differences among real estate prices within EU decrease
As compared to European Union, the Hungarian real estate prices are among the lowest ones, so the natural closing of this scissor in the future can bring fast rate increase that we experienced in recent years.
Sheering wages
Besides the increasing GDP, the tight labour supply and the general closing up to the Western European wage level are expected to be significant impulsive force for the incomes from employment that can directly vivify the demand on the real estate market.
Governmental programs
The government grant for families’ property purchase (CSOK: up to HUF 25 million subsidy and preferential loan) will continue to generate serious demand on the real estate market.
Secondary effects of the returning inflation
By returning of the substantive inflation (inter alia because of governmental economic recovery), it is expected that currently significant demand for new kind of public government securities will reduce if low interest environment still remain, and the excluding investors could addition yield in order to increase the demand.