Károlyi Castle in Fehérvárcsurgó (central-west Hungary)
There are currently 150-200 castles and mansions looking for owners in Hungary, with 80 percent of the supply located in rural areas and prices starting at HUF 330 million (EUR 868,421; 1 EUR = 380 HUF) and reaching up to HUF 10 billion.
In this market segment, which accounts for 2-2.5 percent of Duna House’s premium portfolio, the role of foreign buyers has steadily declined in recent years, with demand being driven by wealthy domestic individuals and businesses. Instead of the former speculators,
family businesses and investors with a long-term perspective have appeared on the market, for whom concrete usability is now the main consideration alongside prestige.
The Festetics Castle in Keszthely, Lake Balaton: Pixabay
Based on Duna House data, the average price of castles in villages and smaller towns is around HUF 330-350 million, in county-level towns HUF 650 million, and in the inner city of Budapest HUF 1.8 billion.
There are currently properties on the market worth several billion forints, and in rare cases even over HUF 10 billion.
More than half of the properties on offer have already been renovated and are in mint condition, thus, the main risk for buyers lies not in the purchase price but in high maintenance costs. Modernizing a historic building can cost several times the purchase price, and monthly overhead costs can run into millions. Modernizing such a property with a heat pump, smart controls, and modern heating is now essential in terms of usability and value retention, believes Péter Szegő, senior analyst at Duna House.
Gödöllő Palace (located in central Hungary). Photo: MTI/Miniszterelnöki Kommunikációs Főosztály/Kaiser Ákos
The metropolitan castles can find buyers in six to twelve months, while the average selling time in Budapest is one and a half years, and for rural mansions it can be as long as two years.
Eszterházy Castle, Fertőd (located in northwestern Hungary). Photo: Pixabay
Demand is driven mainly by tourism (boutique hotels, event venues) and the development of prestigious corporate headquarters, while demand for private residences also remains stable, they wrote.
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Via MTI; Featured photo: Pixabay
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