Purchases of homes for investment purposes rose significantly in Hungary between September and December last year as an increasingly negative economic outlook both in Hungary and Europe drove investors to more secure and high-yielding investments, a survey by Duna House indicates.
While in September about 18% of residential property transactions were for investment purposes, this rate increased to almost a quarter by the end of last year.
At the same time, the average market value of such properties rose to nearly HUF 12 million from HUF 9.3 million. Hungary has become one of the most popular target of property investors over the past few months, Duna House said.
According to recent estimate by Global Property Guide rental homes in Hungary have an average yield rate of 7.18%, one of the best in Europe.
Homes sales last month received a welcome boost on the back of the government’s mortgage aid program after troubled home owners rushed to sell their homes to pay back forex mortgages at discount rates. [resourceinfo.hu]