In a move set to redefine the Hungarian real estate landscape, the country's government has initiated the deployment of an electronic residential property registry.

Announced to take effect from January 15, the new digital system represents one of the most substantial state-level IT transitions in Hungary's history.

The E-ING project, which underpins this initiative, introduces a phased launch of a sophisticated ICT system designed to revolutionize real estate transactions across the nation, according to a statement from the Ministry of Public Administration and Regional Development.

During the transitional period, legal representatives, alongside other authorities and courts, will maintain the option to submit applications, filings, and orders via traditional paper methods.

This will ensure continued protection of real estate traffic databases as electronic administration is gradually embraced.

The overhaul will first make property ownership certificates available online, facilitating easier access for land registry office personnel.

This integration underscores a critical evolution in Hungary's property management, aligning with global trends towards digitalization.

The government places notable emphasis on maintaining continuous, reliable provision of public data throughout this transition, safeguarding information on 11 million domestic properties, their owners, and related mapping databases.

The electronic registry also promises to smoothen official procedures in land registry maintenance.

The Ministry has committed to keeping stakeholders updated on subsequent steps in the E-electronic Property Registry's implementation.

With input from relevant professional entities, the Lechner Knowledge Center Nonprofit Ltd. will also provide guidance on the necessary measures for involved individuals and organizations.

'The shift to an electronic registry signifies a profound transformation in property transactions,' stated László Balogh, chief economic expert at ingatlan.com.

'Certain land registry offices, in charge of specific municipalities, had already integrated the new system, enabling queries about ownership certificates through this platform.

Since autumn last year, the old and new systems have operated concurrently, but from January 15, all land registry offices will record changes within the electronic registry system.'

Even as electronic processing becomes more prevalent, paper-based administration will still be available for several months.

The move will also shift certain responsibilities from land registry officials to lawyers authenticating property sale contracts, potentially reducing both time and costs associated with legal procedures.

According to Balogh, the pace of recording property transactions could increase rapidly, suggesting that in 1-2 years, registering a sale within an hour of contract signing may become common.

This is enabled by automated decision-making options available for simpler transactions under the new system.

As the e-registry systems debut within a burgeoning property market, the anticipated 140,000 to 145,000 transactions this year could exceed 2024 figures by up to 10%.

These developments, along with Hungary's broader shift towards digital citizenship, promise a more transparent, secure, and efficient real estate process for buyers and sellers, transforming dealings from initial property search to the final acquisition of ownership.

Aside from the registry transition, Hungary's real estate market is influenced by broader governmental initiatives.

This year marks the commencement of a new Economic Policy Action Plan aimed at fostering growth over several pillars, including increasing purchasing power, ensuring affordable housing, and supporting small business growth through the Demján Sándor Program.

The focus on affordable housing involves measures aiding youth home ownership and supporting families with children in smaller communities.

These initiatives, expected to invigorate the real estate sector, also allow pension savings to be redirected to property investments, potentially injecting an estimated additional 300 billion forints into the market by 2025.