Inter Relocation Receives Commitment to Excellence Gold Award and celebrates its third Cartus Masters Cup Award nomination

Inter Relocation Group celebrated its third Cartus Masters Cup Award nomination and received the Commitment to Excellence Gold Award at Cartus Corporation’s 2023 Global Network Conference, held virtually from September 20-21, 2023.

The Cartus Global Network represents Cartus’ industry-leading worldwide service provider network. Annually, Cartus acknowledges the outstanding achievements of the companies and individuals within the Network who have delivered exceptional service to its global clientele.

The theme for this year’s conference was “Where Mobility Meets Agility,” embodying the innovative, empathetic, and flexible approach of Cartus supplier partners in aiding relocating employees to navigate today’s dynamic mobility landscape.

Recognizing Demonstrable Dedication: The 3rd consecutive Cartus Masters Cup Nomination and the Commitment to Excellence Gold Award

Inter Relocation Group proudly received the Global Network Commitment to Excellence Gold Award in recognition of its outstanding service outcomes. This award honors a service provider’s demonstrable dedication to excellence and is bestowed upon Global Network service providers who have set themselves apart by attaining crucial performance benchmarks.

“Caring has always been integral to Cartus’ stringent criteria and performance standards for their Network providers,” said Stuart McAlister, Managing Director of Inter Relocation Group.

“We are thrilled to be a part of Cartus’ Global Network and to have earned this recognition, which acknowledges our team’s unwavering commitment to superior service and our ability to innovate in delivering that service within the evolving landscape of today’s relocation industry. As we celebrate our third nomination for the prestigious Cartus Masters Cup Award, we continue to deliver top-tier service for a seamless relocation experience.”

Inter Relocation reached a significant milestone this year, receiving many honours, including the Commitment to Excellence Gold Award

Inter Relocation reached a significant milestone this year, receiving many honours, including our third Cartus Masters Cup Award nomination and the Commitment to Excellence Gold Award

Exemplary Relocation Services by Inter Relocation:

At Inter Relocation, recipient of the Commitment to Excellence Gold Award, our unwavering commitment is to prioritize our clients’ needs. Our team of experts takes great pride in delivering tailored support, ensuring a smooth relocation journey.

With an in-depth understanding of the local market and swift, responsive communication, we keep our clients well-informed throughout the process, addressing any concerns and uncertainties promptly.

Eric Barnes, CFO and Senior Vice President of Supply Chain Management, remarked,

“Our supplier partners are exemplars of professionalism, dedication, innovation, and a commitment to excellence, and we take great pride in having such a robust network of providers who understand the significance of each relocation they facilitate.

When it comes to serving our Cartus clients and customers, Inter Relocation Group consistently delivers the highest level of service excellence. Congratulations on this well-deserved achievement.”

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About Cartus

Cartus Corporation, a global leader in talent mobility and a subsidiary of Anywhere Real Estate Inc. (NYSE: HOUS), offers a comprehensive range of corporate relocation services to organizations worldwide, serving more than one-third of Fortune 100 companies and numerous small-to-mid-size program clients through their dedicated Cartus InsigniaSM segment.
For more information, please visit cartus.com and anywhere.re.

About Inter Relocation

Inter Relocation, established in March 2002, originated in Budapest as a relocation and immigration services provider. Starting with just three team members, we’ve grown into a team of 20 professionals. Founded by Stuart McAlister, a British expat, our client-focused approach reflects his firsthand knowledge of the challenges of relocation.

In 2003, we expanded internationally as the Inter Relocation Group, serving Hungary, the Czech Republic, and Poland. Today, our Budapest office serves as headquarters, and we proudly have franchise group members in 23 countries across CEE and Central Asia.

Our unwavering commitment is to provide award-winning, high-quality services while championing social responsibility, environmental sustainability, and ethical practices.

Our dedication to excellence has earned us numerous awards, including our third nomination for the prestigious Cartus Masters Cup Award, reinforcing our position as a trusted partner in the relocation industry.

Embracing the Global Employee Programme for Talent Management Excellence: Interview with Edit McAlister

Did you know who was one of the first participants in the Global Employee Programme?

Edit McAlister, Marketing Director of Inter Relocation, is featured in the Summer 2023 issue of EuRApean magazine. We were intrigued by her story and sat down with Edit for an in-depth talk, exploring her transforming journey as a programme member and digging into her important views on talent management.

How did you first become involved with the Global Employee Programme?

I first learned about the Global Employee Programme in 2019. Initially, I figured it was only for relocation professionals, but Blue Relocation needed someone with knowledge in global mobility marketing, which piqued my curiosity. As Inter Relocation’s Marketing Director, I was keen to participate in this cutting-edge endeavour. It was a wise option that benefited my career development.

What was the most effective part of the Global Employee Programme in your opinion?

Witnessing the power of collaborative expertise in the digital era was the most engaging element. In the midst of an ever-changing technological world, the programme emphasised the timeless reality that a cohesive team of smart individuals is the key to success. The Global Employee Programme established a collaborative atmosphere that highlighted each team member’s unique talents, resulting in innovative solutions and growth.

Global Employee Programme for Talent Management Excellence

Edit discovered a warm city vibe in Munich that echoed the inviting work environment.

Throughout the programme, you had the opportunity to work with visionaries such as Markus Demuth.

It was incredibly inspiring to work alongside innovators like Markus Demuth. His counsel and mentoring enabled me to widen my thoughts on personnel management and marketing. Furthermore, working with people like Steffen Keller exposed me to new and inventive ways to develop.

What do you believe you contributed professionally in exchange for your stay in Munich with Blue Relocation?

The Global Employee Programme, in my opinion, is a two-way street. As a participant with a marketing and communications background, I specialised in strategic global mobility marketing, which included both communication and digital aspects. My contribution included sharing ideas that created a few “aha” moments among my peers by presenting a fresh viewpoint on the relocation sector. To be honest, I think it would be a good idea to ask Markus and Steffen for their thoughts on this point.

Do you think the Global Employee Programme helps relocation professionals move beyond their existing experience?

Even though participants originate from comparable cultural backgrounds, the programme acts as a professional exchange as well as a cultural interchange. It exposes us to various management techniques and work ethics, delivering crucial insights on what practices we may and may not adopt. These experiences, which may not necessarily be negative examples – everyone handles pressure differently – contribute to the creation and enrichment of our own unique professional styles.

What difference does the Global Employee Programme make compared to working in a different country?

A lot. While I currently work in an international environment, working as an expat often involves committing to a specific country for extended periods, sometimes years. In contrast, the Global Employee Programme offers a more dynamic experience, exposing participants to different approaches in shorter time frames and potentially across multiple locations. It provides the unique opportunity for on-the-job learning and talent management simultaneously. In many cases, this hands-on approach proves to be even more effective and enriching than traditional training sessions.

Getting involved with the Global Employee Programme

Edit happily discovered that Blue Relocation had a pet-friendly office, much like Inter Relocation’s.

Beyond professional development, did the program impact your personal growth as well?

The Global Employee Programme extends beyond just honing professional skills; it enriches personal growth as well. The delicate balance it strikes empowers individuals to become better versions of themselves. I found it to be a refreshing antidote to professional fatigue, reigniting my passion and rejuvenating a sense of purpose in what I do.

The ability to immerse myself in different cultures was quite beneficial. It seemed like I was going on an exciting journey, with each contact adding a brilliant shade to my professional tapestry. This experience emphasised the significance of cultural sensitivity and understanding in our interdependent society. It’s a viewpoint that has since changed my approach to work, allowing me to connect on a deeper level with clients and colleagues.

Looking back on your Global Employee Programme journey, what are the most cherished memories and connections you’ve formed?

The connections I formed with peers from various backgrounds have blossomed into friendships and a valuable support network. The bonds we forged during the journey continue to shape our collective approach to work and life, and for that, I am immensely grateful.

As you move forward, what are your aspirations in talent management and global mobility marketing?

My aspirations in talent management revolve around fostering a cohesive and empowered team within Inter Relocation. It’s essential for every individual to feel valued and motivated to contribute their best. As for global mobility marketing, I’m excited to explore innovative strategies that resonate with our clients, enhancing their relocation experiences and solidifying our position as industry leaders.

I’m eager to see how the Global Employee Programme continues to inspire others and shape the future of talent management and global mobility.

Mobility Light Orchestra: Inter Relocation’s Company Owner Takes the Spotlight on The EuRApean Magazine Cover: Summer 2023 Edition

What’s the story behind our company owner gracing the cover of The EuRApean magazine’s Summer 2023 issue? It’s an intriguing tale of musical collaboration with a twist!

Stuart McAlister, our esteemed owner, had a unique opportunity to be part of The Mobility Light Orchestra (MLO) – EuRA’s first global mobility music group.

As a guest singer, he joined talented professionals from various backgrounds to create a captivating experience. Let’s delve into the journey that led to this remarkable collaboration!

The Vision: A Band Like No Other

At the EuRA conference in Seville, the seeds of an extraordinary band were sown. Inigo Lopez from BiCortex Languages & Translations and Maximiliano Cao from CSM Globals shared a vision of forming a band that would unite music enthusiasts within the global mobility community. Thus, The Mobility Light Orchestra (MLO) was born, a band comprising musicians from diverse backgrounds and countries, each passionate about music and mobility.

Challenges and Trust: Mobility Light Orchestra at EuRA

With the daunting task of assembling musicians scattered across the globe, MLO faced numerous challenges. However, the support of EuRA, especially Sophie Rehberg from the EuRA board, boosted their spirits. The band was graciously invited to perform at the Gala Dinner of the EuRA Conference in Dublin, signifying the trust and belief in MLO’s unique musical journey.

Harmonizing the Ensemble: The Musicians of MLO

The MLO lineup boasts a constellation of talent. Diego Vozza leads as the band’s charismatic singer, while Maximiliano Cao showcases his drumming prowess. Christian Ward provides the soulful rhythm on bass, and Gavin Carruthers adds electrifying energy on guitar and backing vocals. John D’Ambrogio captivates with his keyboard melodies, while Luciano Basilico provides essential technical support and backing tracks all the way from Argentina.

Moreover, as a guest singer, Stuart McAlister, the esteemed owner of Inter Relocation, lent his captivating voice, while Alistair Murray from Packimpex joined as a guest drummer, enriching the band’s exceptional musical journey.

Rehearsals and the Magic of Music

MLO faced the challenge of coordinating rehearsals across borders. Despite the constraints, their passion and commitment never wavered. The band members rehearsed individually, each investing their heart and soul into perfecting their parts. The final rehearsal just 24 hours before the big night in Dublin brought a sense of togetherness and ignited excitement for what was to come.

The Unforgettable Performance: Enchanting the Audience

As the night of the performance arrived, Dublin was set ablaze with MLO’s enthralling music. The band’s infectious energy captured hearts within seconds, drawing the audience to the dance floor in an irresistible sway. Stuart McAlister, alongside the guest musicians, embraced the stage with sheer confidence, delivering a remarkable performance that left an indelible mark.

Mobility Light Orchestra at EuRA

A Harmonious Future: MLO’s Journey Continues

The success of MLO’s performance in Dublin echoed beyond the Gala Dinner, earning them an invitation to perform at the next Global conference in Vilamoura. With new surprises in the works, MLO is poised to create an unforgettable experience once again. The band’s harmonious journey stands as a testament to the power of unity, passion, and creativity within the relocation industry.

In Celebration of a Beautiful Fusion

Stuart McAlister’s musical collaboration with the Mobility Light Orchestra epitomizes the beautiful fusion of passion, talent, and camaraderie within the relocation community. As the band continues to create soul-stirring music, their journey is a testament to the magic that unfolds when professionals unite around shared passions.

Inter Relocation, with its esteemed owner shining on the cover of The EuRApean magazine, stands as a beacon of excellence and inspiration within the global mobility sphere. As we celebrate this harmonious symphony of talent, we eagerly await the next chapter in the musical odyssey of the Mobility Light Orchestra.

Mobility Light Orchestra team (Dublin 2023):

  • Inigo Lopez, BiCortex Languages & Translations (EMCEE)
  • Diego Vozza (lead singer)
  • Maximiliano CAO, CSM Global (drums)
  • Christian Ward, Missing Link (bass)
  • Gavin Carruthers, K2 Corporate Mobility (guitar and backing vocalist)
  • John D’Ambrogio, Properties Chicago (keyboards)
  • Luciano Basilico, virtually from Argentina (technical support and backing tracks)
  • Stuart McAlister, Inter Relocation (guest singer)
  • Alistair Murray, Packimpex (guest drummer)

Celebrating Excellence: Inter Relocation’s 3rd Nomination for the Prestigious Cartus Masters Cup Award

At Inter Relocation, it is with immense joy and honour that we share the news of our third consecutive nomination for the esteemed Cartus Masters Cup Award at the 2023 Global Network Conference.

This prestigious recognition, presented annually by Cartus Corporation, celebrates outstanding service and exceptional performance within its esteemed Global Network. As a leading provider of relocation services, this nomination stands as a testament to Inter Relocation’s unwavering commitment to excellence and the exceptional support we provide to our clients throughout their relocation journey.

Inter Relocation's 3rd Nomination for the Prestigious Cartus Masters Cup Award

We’re celebrating our our third consecutive nomination for the Cartus Masters Cup Award

The Cartus Global Network Conference:

The 2023 Cartus Global Network Conference, taking place from September 20-21, 2023, brings together a dynamic and innovative community of industry-leading worldwide service providers. Representing 175 countries from around the globe, this event fosters collaboration, encourages innovation, and shares best practices to elevate service delivery for Cartus clients and their relocating employees.

This year’s theme, “Where Mobility Meets Agility,” embodies the compassionate and agile approach that Cartus supplier partners, including Inter Relocation, take in helping relocating employees navigate the evolving mobility landscape.

Inter Relocation and the Cartus Masters Cup Award:

Our nomination for the Cartus Masters Cup Award lies in the category of Home-related Services. This esteemed award is reserved for Global Network members who consistently achieve exceptional standards of quality and service excellence.
As a nominee, Inter Relocation must showcase:

  • Unwavering commitment to service excellence and customer satisfaction.
  • A collaborative and innovative approach in developing cost-effective solutions for Cartus clients.
  • An outstanding performance and dedication to Cartus’ vision and values, ensuring tailored solutions that meet the unique needs of our clients and their employees.

Inter Relocation’s Remarkable Service:

At Inter Relocation, we are dedicated to providing unparalleled relocation services that put our clients’ needs front and center. Our expert team takes pride in delivering personalized assistance, guiding our clients through the entire relocation process seamlessly.

With a deep knowledge of the local market and fast, responsive communication, we keep our clients informed at every step of the way, alleviating any concerns or uncertainties they may have.

A Word from Stuart McAlister, Inter Relocation’s Company Owner:

Inter Relocation Receives Commitment to Excellence Gold Award“I’m honoured to receive this Cartus Masters Cup Award nomination, which recognizes thededication and quality of service we consistently demonstrate while supporting Cartus clients and relocating employees. The rigorous standards that Cartus maintains for all its supplier partners make this nomination an even greater honour. I extend my heartfelt gratitude to our hardworking colleagues, who work tirelessly to uphold our high standards and make each relocation journey a success.”

We extend our heartfelt appreciation to Cartus Corporation and our valued clients for their continued trust and support. With our focus firmly set on delivering personalized, efficient, and high-quality service, we look forward to serving even more clients and making a positive impact in the realm of global mobility.

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About Cartus Corporation:

Cartus Corporation, a global leader in talent mobility, delivers comprehensive corporate relocation services to organizations worldwide. As a subsidiary of Anywhere Real Estate Inc., they serve a diverse clientele, including a significant portion of Fortune 100 companies, delivering proactive, flexible solutions tailored to each client’s unique needs.

For more information, visit cartus.com and anywhere.re.

About Inter Relocation

Founded in March 2002, Inter Relocation began as a Budapest-based provider of relocation and immigration services. With just three staff members initially, we’ve since grown to a team of 20 professionals.

In 2003, we expanded internationally as the Inter Relocation Group, extending our services to Hungary, the Czech Republic, and Poland. Today, we’re proud to have franchise group members in 23 countries across CEE and Central Asia, with our Budapest office as the headquarters.

At Inter Relocation, our unwavering commitment is to deliver award-winning services of the highest quality to our clients, partners, and assignees. We believe in social responsibility, environmental sustainability, and ethical practices, actively promoting diversity, equity, and inclusion.

Founded by Stuart McAlister, a British expat who understands the challenges of relocation firsthand, our personal touch and dedication shape our client-focused approach.

Our dedication to excellence has earned us numerous awards and recognition, making us a trusted partner in the relocation industry. As we celebrate our third nomination for the prestigious Cartus Masters Cup Award, we continue to deliver top-tier service for a seamless relocation experience.

Maximize Your Expat Benefits with Family Tax Allowance in Hungary

Moving to Hungary or already living here with your family? Explore the benefits of the Family Tax Allowance in Hungary. In collaboration with Horizon Solutions, a trusted tax consulting company, Inter Relocation now offers expert guidance on Hungarian tax rules through our informative blog. Maximize your tax benefits as an expat in Hungary and enhance your family’s relocation experience. Have questions about relocation matters? Contact us today for personalized assistance.

Hungary offers a Family Tax Allowance with dependents, which can also be claimed by expatriates. This tax base allowance reduces the consolidated tax base and can be claimed depending on the number of dependents.

The amount of the tax allowance varies depending on the number of children and can be a significant reduction in taxable income.

What is the Family Tax Allowance?

The Family Tax Allowance is a tax base allowance that reduces the consolidated tax base, which the beneficiary can claim for dependents depending on the number of dependents per month of entitlement.

The parents can reduce their tax bases after their children while they are attending school. The amount of the family tax allowance in Hungary is based on the number of children, with a higher allowance for more children.

Family Tax Allowance in Hungary for Expatriates

“The parents can reduce their tax bases after their children while they are attending school.”

The amount of the Family Tax Allowance in Hungary is as follows:

1 child: 10,000 HUF (monthly) or 120,000 HUF (€330) per year

2 children: 40,000 HUF (monthly) or 480,000 HUF (€1,300) per year

3 children: 99,000 HUF (monthly) or 1,188,000 HUF (€3,300) per year

How can expatriates claim the Family Tax Allowance in Hungary?

According to the principle of equal treatment, a foreign individual may not be subject to a tax higher than that which the domestic individual has to pay on the same grounds.

A foreign individual may also take advantage of tax-related benefits, including family allowances, if at least 75 percent of their total income is taxed in Hungary and they do not take advantage of the same or similar allowance in another state for the same period.

If the foreign individual complies with the foregoing, the rules on family allowance shall apply mutatis mutandis to child benefit, disability benefit, or disability benefit under the legislation of any foreign state also in the case of another individual (entitled, dependent) entitled to similar benefits.

The children should obtain a TAX ID as well. Via self-revision, the taxpayer can reduce tax for the previous years within the statute of limitations, which is 5 years in Hungary. Horizon Solutions Ltd. can assist you in this matter.

A significant reduction in taxable income

The Family Tax Allowance in Hungary is a significant reduction in taxable income for families with dependents, including expatriates living in Hungary. It is essential to understand the rules and regulations to claim the tax allowance successfully.

If you comply with the requirements, you can benefit from the tax-related benefits that Hungary offers, including the Family Tax Allowance.

Expat in Hungary or thinking about relocating? Inter Relocation is your trusted partner for a seamless, safe, and stress-free relocation. From tenancy management to permits, we’ve got you covered. Do you have any questions or require relocation assistance? Please contact us right away. Working with Horizon Solutions guarantees skilled tax advice. Visit Horizon Solutions’ website or connect with László Soos and Györgyi Jenei for tax inquiries.

Hungarian Property Market Trends: Rising Rental Yields, Declining Supply, and Impact on Property Prices

Learn about the latest trends in the Hungarian property market, from rising rental yields to a decline in flat supply, and how they affect Hungarian property prices in the second part of a series of articles on the Hungarian housing market.

Rental yields in Budapest are moderately good, with Buda apartments outperforming Pest, and apartment rents are rising again. The main reason for the rent increase is a decrease in rental flat supply.
Despite rising interest rates, the Hungarian housing loan market is expanding, with more people purchasing homes with loans.

Hungarian property market trends

Number of housing transactions made by private persons by quarter years – source: KSH

Residential Construction Rise

The Hungarian property market surge has resulted in a sharp increase in residential construction, with almost half of the new supply being in Budapest and Pest. In 2020, the total number of newly built dwellings in Hungary rose 33.5% y-o-y to 28,208 units, despite the pandemic. However, in 2021, newly built dwellings fell by 29.5% y-o-y to 19,898 units due to rising material costs.

Budapest Rental Yields are Moderately Good with Rents Rising Again

The rental yields in Budapest are moderately good, with the Hungarian property market rebounding from the decline due to travel restrictions and Airbnb regulations. Gross rental yields in Buda apartments are yielding higher returns than Pest.

The apartment rents in Budapest are on the rise again, particularly due to the decline in the supply of rental apartments.

Higher Yields in Buda, Lower in Pest

According to a Global Property Guide research, apartments in Buda have higher yields, ranging from 5.63% for smaller-sized apartments of 90 sq. m. to 5.73% for larger apartments of 120 sq. m. In comparison, apartments in Pest have slightly lower rental yields, ranging from 5.16% to 5.24%.

Rising Rents

According to KSH-ingatlan.com rent index analysis, apartment rents in Hungary surged 23.4% YoY by end-Q2 2022, with rents in Budapest increasing 24% YoY over the same period. However, the longer-term data indicate a moderate rise in prices, with average rents rising by almost 66% nationally and 57% in the capital since 2015.

Decline in Rental Apartment Supply

The decline in rental apartment supply is the main reason for the surge in rents. The number of apartments for rent has dropped from 20,000 to just over 10,000, a 49% decline, in the past year, said László Balogh, the leading economic expert of ingatlan.com.

Rent Range in Budapest

The average monthly rents for brick apartments in Budapest range from HUF 125,000 (€294) to HUF 350,000 (€825). Districts 1, 2, 3, 5, 6, and 12 are among the most expensive areas, while Districts 4 and 10 and the peripheral districts on the Pest side are the cheapest.

Hungarian Property Market Trends - Rent range in Budapest

Source: KSH (Hungarian Central Statistical Office)

Interest Rates on the Rise

Despite the increasing interest rates, the Hungarian housing loan market is growing, with more people buying houses with loans. However, the size of the mortgage market remains small compared to GDP.

According to the European Central Bank, housing loan interest rates are beginning to rise, with the average interest rate on housing loans increasing to 4.83% in August 2022 from 4.49% in the previous year. As a result, this may have an impact on the Hungarian property market in the near future.

Hungary Interest Rates

The average interest rates on loans for house purchases by initial rate fixation (IRF) in August 2022 were as follows:

  • IRF of up to 1 year: 6.52%
  • IRF over 1 year and up to 5 years: 4.7%
  • IRF over 5 years: 4.83%

Mortgage Market Growing Strongly

The growth of the Hungarian property market continues to drive the mortgage market, which is showing strong signs of expansion.

The value of new housing loans disbursed rose significantly by 36.2% to HUF 1.25 trillion (€2.94 billion) in 2021, and the total number of new housing loans disbursed increased 16.7% to 121,347 last year.

New Loans Disbursed

The Hungarian property market has witnessed a significant rise in the number of new loans disbursed for buying second-hand homes, which surged by almost 35% y-o-y to HUF 857.8 billion (€2.02 billion), and loans for buying new homes rose strongly by 21.7% to HUF 135.61 billion (€319.4 million) last year.

Loans for housing construction rose slightly by 2.1% to HUF 80.4 billion (€189.3 million) last year, and loans for home renovation almost tripled to HUF 118.72 billion (€279.6 million) in 2021.

Reasons for Increased Loan Demand

Hungary’s relatively low interest rates and subsidized lending schemes, such as the Family Housing Subsidy Scheme (CSOK), have led to increased loan demand. The government’s newly introduced home improvement subsidy has also contributed to this.

Housing Loans Outstanding

The value of housing loans outstanding increased 15% to HUF 4.58 trillion (€10.8 billion) in 2021, and the share of “problem-free” loans slightly declined to 96%. The non-performing exposure ratio also increased to 3.7% last year.

The state of Hungary’s economy

Hungary’s economy has had a strong recovery since the pandemic, registering a real GDP growth rate of 7.1% in 2021, one of the fastest in the EU. In Q2 2022, the economy grew by 6.5% YoY, with all sectors contributing except agriculture.

However, the European Commission’s forecast expects the economy to slow down to 5.2% this year due to rising inflation, tightening fiscal and monetary policies, trade disruptions, and the situation in Ukraine and Russia. These factors may also strongly affect the Hungarian property market.

GDP Growth and Contributing Sectors

Hungary’s Finance Minister noted that Q2 growth was supported by all branches of the economy, particularly industry, trade, tourism, the financial sector, and ICT. Quarter-on-quarter, the economy expanded by 1% in Q2 after growing by 2.1% in the previous quarter.

Forecasted Slowdown in Economic Growth

While Hungary’s economy has been experiencing strong growth, it is expected to slow down due to various factors such as inflation, fiscal and monetary policies, trade disruptions, and uncertainty in Ukraine and Russia. As a result, the growth of the Hungarian property market is also expected to be impacted.

Unemployment and Inflation

Unemployment in Hungary is at a low of 3.4%, and the nationwide inflation rate in August 2022 rose to 15.6%, the highest since May 1998. The surge in inflation was due to a rise in food and other commodity prices, far above the central bank’s target range of 2% to 4%.

An Overview of the Hungarian Housing Market: House Prices Surge by 22.8%

According to data from the Hungarian Central Statistical Office (KSH), Hungarian housing market saw a surge of 22.8% (11% inflation-adjusted) in Q2 2022, the highest annual price growth recorded in recent history.

The demand for homes has also risen after a decline in 2019-20, with the total number of second-hand homes sold increasing by 13.8% in 2021. Meanwhile, foreign demand has recovered due to the weakening of the forint against the euro.

Regional Price Trends

Pest, the eastern part of Budapest, had the highest y-o-y increase of 33.7%, followed by Northern Great Plain, Northern Hungary, Southern Great Plain, Central Transdanubia, Southern Transdanubia, and Western Transdanubia. Budapest saw a more modest increase of 9.7% in the mean price of second-hand homes y-o-y.

Local House Price Variations

Budapest and Pest have the most expensive housing, with the average price of second-hand homes reaching HUF 39.7 million (€93,491) in 2021. Meanwhile, the Great Plain and North regions have the least expensive housing, with the average price standing at around HUF 11.7 million (€27,553) and HUF 14.3 million (€33,676), respectively.

Hungarian Housing Market: Price Trends

Mean price per sqm by region and settlement type, source: KSH

Average Home Prices

In Q1 2021, the average price of new homes was HUF 45.6 million (€107,862), while second-hand homes averaged HUF 22.8 million (€53,931).

Overview of the Hungarian Housing Market

Hungarian Housing Market – trends in housing prices, source: KSH

Rising Demand

The demand for second-hand homes has bounced back strongly, with an annual increase of 13.8% in 2021. This is a significant improvement from declines of 14.3% in 2020 and 5.7% in 2019. Foreign demand is also on the rise due to the weakening of the forint against the euro.

Hungarian housing market continues to rise, with an increasing number of people looking to purchase homes, particularly in Budapest.

The number of second-hand homes sold rose by 13.8% to 142,138 units in 2021 from a year earlier, a significant improvement from annual declines in 2020 and 2019. Second-hand home sales increased in Central Hungary and Transdanubia by 12.8% and 15.6% year-on-year, respectively. In contrast, sales in Pest decreased by 25.4% in 2021.

Hungarian Housing Market: Rising Demand

Source: KSH

Hungarian Housing Market: Weak Construction but Improving Demand

Despite a robust overall economy, Hungary’s residential construction activity remains weak. In the first half of 2021, housing completions fell by 6.8% year-on-year to 9,133 units, with a 16.8% drop in Central Hungary and a 1.9% drop in Great Plain and North. Newly built homes increased 21.6% year-on-year in Transdanubia.

Foreign Buyers Rising Again

In the first half of 2022, the number of foreigners interested in Hungarian residential properties rose by 10%, partly due to weakening domestic currency against the euro. The high concentration of foreign homebuyers in Budapest is one of the main reasons for the huge price difference between the city and the rest of the country, with foreigners spending on average over HUF 40 million (€94,195) on a home in Budapest.

Foreign Homebuyers in Hungary: Popular Locations and Legal Requirements

Hungary has been a popular destination for foreign property buyers in recent years, with Budapest being the most favored location. In fact, more than half of foreign property demand is in Budapest. District 7, 6, and 8 are the top three districts preferred by foreign homebuyers. Moreover, towns and villages in the counties around Lake Balaton also represent about 11% of foreign demand.

However, the Covid-19 pandemic has negatively impacted the foreign property market in Hungary. Home purchases by foreigners have significantly dropped due to travel restrictions. Before the pandemic, foreign homebuyers were on the rise.

From 2017 to 2019, the number of purchases increased from 3,207 to 3,753. Chinese citizens accounted for more than half of the total, followed by EU citizens, primarily Germans. Other large groups of buyers were Israelis, Russians, and Turks.

Hungarian law requires that real estate purchases be concluded through private contracts countersigned by a lawyer. Non-Hungarian citizens must obtain approval from the relevant Administrative Office to purchase property as a private person. The process usually takes 2-3 months.

To avoid this approval process, most lawyers advise foreign nationals to set up a company registered in Hungary to purchase property. This process takes only 1-2 days, and all expenses can be written off.

In conclusion, Hungary is a popular destination for foreign property buyers, particularly in Budapest and towns/villages around Lake Balaton. However, purchasing property in Hungary as a foreigner requires following legal requirements, and it is advisable to consult a lawyer for guidance.

Hungary’s Housing Cycle: From Crisis to Recovery

The Hungarian housing market has experienced a tumultuous cycle from crisis to recovery, with government measures playing a significant role in boosting demand. The COVID-19 pandemic has had an impact on the housing market, but it has quickly bounced back in 2021. As Hungary continues to recover, the housing market is likely to see further growth in the coming years.

The Hungarian housing market suffered a severe decline from 2008 to 2013, with house prices falling by 21% (36% inflation-adjusted) as a result of the 2009 global financial crisis and the forint’s steep decline that caused the mortgage market to collapse.

However, legislation in November 2014 required financial institutions to convert all outstanding foreign currency-denominated loans into HUF by December 2015, causing a sharp decrease in the stock of housing loans in foreign currency. House prices began to rise by 6.6% (7.3% inflation-adjusted) in 2014, and have been increasing annually by double-digits, surging by a total of 120% (99% inflation-adjusted) in 2014-19.

COVID-19 Impact on the Hungarian Housing Market

The housing market’s growth decelerated to 6.8% (3.9% inflation-adjusted) in 2020 due to the economic repercussions brought by the COVID-19 pandemic, the ensuing lockdown measures, and travel restrictions. However, the Hungarian housing market bounced back quickly in 2021, registering a house price increase of 21.4% (13.4% inflation-adjusted), as economic conditions gradually improve.

Government Measures Boost Demand

Part of the housing demand recovery during 2014-5 was due to other government measures. In 2013, the government increased the amount of 5-year loan subsidies, the maximum value of subsidized loans, and the loan house price threshold, resulting in significantly stronger credit demand in the second half of 2013.

In 2015, a non-refundable subsidy, the family housing allowance (CSOK), became available for buying new- and used homes, apartment expansions, and home construction. The program was expanded in 2018, allowing families returning from abroad and those owning a property to apply for the CSOK.

By end-2021, almost 192,000 families had benefited from the program, receiving a total of HUF 467.4 billion (€1.1 billion). Furthermore, every woman under the age of 40 is eligible for a CSOK interest-free loan when she first gets married. The government also repays HUF 1 million (€2,355) of mortgage loans for families with at least two children.

Easter in Hungary – 5 Magical Traditions You Should Know

If you’re planning to relocate to Hungary, it’s important to be aware of the country’s customs and traditions, particularly during holidays such as Easter.

Easter in Hungary is very significant for the locals, and it’s important to understand how Hungarians celebrate this holiday.
In this article, we will explore the Easter traditions and customs in Hungary that you should be aware of as a newcomer.

Easter in Hungary: A Time of Celebrations and Traditions

Easter in Hungary is a time of joy, feasting, and celebrations. The Easter holiday starts with Good Friday, which is a solemn day when the Hungarians remember the crucifixion of Jesus Christ. On this day, you will see people visiting the churches, and many shops and restaurants remain closed.

Some regions even hold religious processions or special choral performances, which add a deep cultural dimension to the day’s otherwise quiet and reflective atmosphere.

Easter Sunday

Easter Sunday is the most important day in the Hungarian Easter celebrations. On this day, the locals attend a mass in their local church, and families gather to have a festive meal. The traditional Easter meal in Hungary is ham and hard-boiled eggs, which are often decorated with intricate designs. You will also find a range of delicious cakes and pastries, such as the famous Hungarian Easter cake, known as “Kalács.”

Another staple on many Easter tables is horseradish, often served with ham, symbolizing strength and rebirth. In some rural areas, families still bless their Easter baskets in church before the meal.

Ducking Monday

Easter Monday, known as “Ducking Monday, or “Dousing Day” is a unique Hungarian tradition where boys visit the homes of girls and sprinkle water on them. According to the tradition, the water has a cleansing effect and brings good health and beauty to the girls.

In modern times, the custom has become more playful—boys may recite humorous poems before sprinkling, and girls often reward them with chocolates, colored eggs, or even a small shot of pálinka.

Easter in Hungary: traditional kalács

Customs and Superstitions

Apart from the traditional Easter celebrations, Hungary has many customs and superstitions that are unique to this holiday. One of the most famous customs is the “Easter Sprinkling,” where people sprinkle perfume or cologne on each other’s faces as a sign of good luck and health.

To celebrate Easter in Hungary, Easter eggs are a must-have, as they symbolize rebirth and new life. It is a traditional practice to dye the Easter eggs red in Hungary, and during the season, you can find them everywhere. Another interesting custom is that after sprinkling the girls, men usually receive a red-painted egg.

For an authentic Easter experience, consider visiting Hollókő, a picturesque village in northern Hungary that hosts traditional Easter festivals every year.
Here, locals dress in folk costumes, perform dances, and re-enact age-old customs like water-sprinkling in the streets.
This UNESCO World Heritage Site offers a rare glimpse into living traditions that have been preserved for generations.

Similar cultural celebrations can be found in rural areas of Nógrád and Heves counties, where Easter is still marked by community events, folk music, and handcrafted egg painting workshops.

Easter in Hungary: traditional red eggs

The Hungarian Easter tradition involves the Easter Bunny, who hides painted eggs and chocolates for children to find in the garden on Easter Sunday morning. However, it’s worth noting that this practice originated in Germany.

In Hungary, it is also believed that you should not whistle on Easter Sunday, as it will bring bad luck for the rest of the year. It’s also considered unlucky to sweep the house during Easter, as it is believed to sweep away the good luck.

Local customs and traditions can help you integrate

Relocating to Hungary can be an exciting experience, and it’s essential to know the local customs and traditions to help you integrate into the local community.

Easter in Hungary is significant, and by understanding the traditions and customs, you can participate and enjoy the celebrations like a local. From the solemn Good Friday to the joyful Easter Sunday and the unique Easter Monday, Hungary has a rich and diverse culture that celebrates the Easter season in a unique way.

Ready to make your move?

Understanding holidays like Easter in Hungary is just one step toward settling in with confidence.
Need help with visas, housing, or local integration?
Explore our relocation services → and let our experts guide you through every step of the move.

Happy Easter—or, as locals say: Kellemes Húsvéti Ünnepeket!

12 good tips for adjusting to life in Budapest

Budapest is a beautiful and vibrant city that is rich in culture and history. If you are moving to Budapest, you may find that adjusting to life in a new country is difficult.

However, with a little effort and some helpful advice to help you, you can quickly settle into your new life in Budapest.

Here are 12 simple tips to help you adjust to your new surroundings:

1. Study the language

While it is possible to get by without knowing Hungarian in Budapest, knowing the language will make your life much easier.

Hungarian is regarded as one of the most difficult languages to learn for English speakers, ranking among the top ten.

However, it is definitely worth a shot. On average, it takes 44 weeks of consistent practise to be able to hold a decent conversation. Surprisingly, the Hungarian alphabet also has 44 letters!

Although it may appear difficult at first, learning the language will significantly enhance your life in Budapest. To begin, consider taking language classes or using language learning apps to learn the fundamentals and gradually expand your vocabulary.

This will not only help you communicate with locals, but it will also make it easier to navigate daily tasks like grocery shopping, restaurant ordering, and getting around the city.

2. Learn about the city.

Spend some time exploring the city to become acquainted with its layout and various neighbourhoods. This will make you feel more at ease and confident in your surroundings.

3. Join expat organisations.

There are numerous expat groups in Budapest that can help you build a social network and provide useful information. Joining one of these groups can help you adjust to your new surroundings faster.

4. Try the local cuisine.

Hungarian cuisine is delicious and unique, so try some of the local dishes. This will make you feel more at ease with the local culture.

5. Use public transportation.

Budapest has a fantastic public transportation system that is both affordable and efficient. It’s a great way to get around town and discover new neighbourhoods.

6. Discover the customs.

Hungary has its own traditions and customs that may differ from what you are used to. Learn about these traditions so that you can understand and respect them.

7. Be willing to try new things.

Budapest has a lot to offer, so be open to new experiences. Whether it’s trying new foods or going to a local festival, being open to new experiences will help you adjust to life in Budapest.

8. Make new friends with the locals.

Making friends with locals will help you understand the local culture and feel more connected to your new home.

9. Participate in activities.

Get involved in activities that interest you in Budapest’s thriving arts and culture scene. This will assist you in meeting new people and making new friends.

10. Find a hobby.

Finding an enjoyable hobby will help you feel more at ease in your new surroundings. Finding a hobby, whether it’s sports or joining a book club, can help you connect with like-minded people.

11. Maintain contact with family and friends.

Moving to a new country can be stressful, so keep in touch with your family and friends back home. This will make you feel more supported during your transition period.

12. Please, be patient.

It takes time to adjust to life in a new country, so be patient with yourself. Expect nothing to happen overnight, and remember that it’s fine to make mistakes and seek assistance along the way.

To summarise, moving to Budapest can be a difficult but rewarding experience. By following these tips and giving yourself enough time to adjust, you will be able to quickly settle into your new life in Budapest and begin enjoying everything that this lovely city has to offer.

7 Fascinating Aspects of Hungarian Culture You Should Know

Hungary is a land of rich history and cultural diversity, but adapting to its unique customs and traditions can be a daunting task.

Hungary is a captivating country with a vibrant culture that has evolved over centuries. From its famous thermal baths to the mouthwatering goulash, there’s no shortage of things that make Hungary a delightful place to live or visit. This article provides valuable insights into the Hungarian culture, empowering you to fully embrace this fascinating country.

Hungarian culture—a brief overview

Nevertheless, if you’re new to the country or have been here for some time, you may encounter some cultural differences that can be challenging to navigate. Fear not, as we’ve compiled a comprehensive guide to help you adapt to Hungarian culture with ease.

Genuine traditional Hungarian culture has survived for a long period in an untouched countryside characterized by rootedness. Peasant dress, food, and entertainment, including folk songs and folk dances—the rituals of weddings and Easter and Christmas holidays—have continued until the mid-20th century.

The Hungarian language is unique among the nations of Europe in that it is not related to any other major European language. This has caused Hungarians to feel isolated throughout much of their history. Russian was mandatory in schools and universities during the socialist period. Throughout history, Hungarians have struggled to find their own voice and identity while under the control of various forces.

Language

Hungarian is the official language of Hungary and is spoken by the majority of the population. It’s a complex language with unique grammar and syntax, which can make it challenging to learn. But don’t be intimidated. Before moving to Hungary, start learning some basic Hungarian phrases that will help you in your daily life, such as ordering food or asking for directions.

Hungarians are very proud of their language; it’s a key part of their identity.

In larger cities like Budapest, you’ll find that many people speak English. However, in smaller towns and rural areas, it’s less common. And don’t forget that Hungarians write their family name first, followed by their given name. There’s also formal and informal language use. For example, the use of ‘te’ is informal, while ‘ön’ is formal.

Social Etiquette

Hungarians are polite and formal, especially in formal situations such as business settings. They use formal language, but in casual situations, they swap to informal language. It’s common for a senior person to offer a younger or less senior person to feel free to call him/her by their given name.

When greeting someone, it’s customary to shake hands and maintain eye contact during conversations. If you’re invited to someone’s home, it’s polite to bring a small gift, such as flowers or chocolates. Also, it’s considered impolite to arrive late for social events in Hungary, so make sure you arrive on time.

Food and Drink

Hungarian cuisine is hearty and delicious, featuring dishes such as beef stew, stuffed cabbage, and chimney cake. Hungarians also love their wine, with several wine regions throughout the country. When dining with Hungarians, wait for everyone to be served before starting to eat, and always offer a toast before taking the first sip of wine. In Hungary, it’s typical to eat a large lunch and a lighter dinner, so don’t be surprised if dinner is a smaller meal.

Holidays and Celebrations

Hungarians celebrate many holidays and traditions throughout the year. Easter is a significant part of the Hungarian culture, with many customs, such as the sprinkling of water or perfume on women. Christmas is also a major holiday, with the traditional celebration taking place on Christmas Eve. Families often attend midnight mass, followed by a festive meal.

Work Culture

Hungarians take their work seriously and are generally hardworking and efficient. They value punctuality and expect others to be on time for meetings and appointments. In Hungarian workplaces, there is often a strict hierarchy, and it’s essential to show respect to those in positions of authority. It’s also common to address colleagues and superiors by their title, such as “Dr.” or “Professor.”

Conclusion

Adapting to a new culture can be challenging, but by understanding the key cultural differences in Hungary, you’ll be better equipped to navigate daily life. Whether it’s learning some basic Hungarian phrases or familiarizing yourself with Hungarian social customs, taking the time to adapt to Hungarian culture will help you make the most of your time in this beautiful country.