Schengen sparks migration boom: What it means for Hungary and Romania!
Romania’s accession to the Schengen Agreement on 1 January 2025 marked a historic turning point, abolishing physical border controls between Hungary and Romania.
According to Világgazdaság, this development has accelerated an already existing trend: growing interest in Hungarian border settlements. Lower property prices and improved living conditions have prompted increasing numbers of people to relocate from Romania to Hungary, particularly to the border regions.
Schengen accession: Economic and social aspects
Migration is driven by several factors. While large Romanian cities such as Arad and Temesvár (Timișoara) are experiencing rapid economic growth, the rising cost of living is motivating many to seek more affordable alternatives. On the Hungarian side, lower living costs and a quieter, more relaxed lifestyle are especially appealing to families and the older generation. Additionally, good transport links make commuting between Hungarian settlements and Romanian workplaces relatively easy.
The property boom is also attracting investors. Many are purchasing houses not only for personal use but also for investment purposes, capitalising on the steady rise in property prices. Increasing numbers of Romanian buyers are acquiring older properties for use as weekend homes or for rental income, providing an additional financial benefit.
The removal of the border between the two countries is influencing the region not only economically but also culturally. The emergence of mixed communities fosters deeper ties and strengthens cross-border cooperation, bridging historical divides.
Central players in the cross-border property market
One of the key destinations is Biharkeresztes in Hajdú-Bihar County, just 17 kilometres from Oradea. Its popularity stems from various factors: well-developed infrastructure, frequent bus services, and relatively low property prices make it particularly attractive to Romanian buyers. The local property market is dominated by so-called Kádár-kocka houses, simple rectangular single-storey homes. Although their prices have risen recently, they remain much cheaper than apartments in Oradea. For instance, a house in relatively good condition costs around HUF 30 million, significantly less than a 100-square-metre apartment in Oradea, priced at over HUF 60 million (EUR 145,000).
Battonya, a small town in Békés County, is another central player in the cross-border property market. The influx of Romanian buyers began over 15 years ago, even before Romania’s accession to the EU, when property prices in border areas were considerably lower on the Hungarian side. This trend has persisted, and Romania’s accession to Schengen has further bolstered it.
Property prices in Battonya have risen significantly in recent years but remain affordable for Romanian buyers. For instance, a house priced at EUR 12,000 on the Hungarian side is much cheaper than a comparable property in Tornya, Romania. The mayor’s office predicts that Battonya’s population could increase by up to 20% in the coming years, reaching approximately 7,000 residents.
A new era for the border region
Romania’s accession to Schengen has ushered in a new chapter in the history of the Hungarian-Romanian border region. Lower property prices in Hungary and the ease of cross-border transit have triggered economic and social changes that are reshaping the region.
Closer cooperation between the two countries presents an opportunity to re-establish the area as a unified economic and cultural zone. While the booming property market and population growth bring opportunities, they also pose challenges that will shape the long-term future of the border regions.
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