Hungary
The hangover of 40 years of Communist rule has been replaced by a stable thriving democracy within Europe. Hungary is situated in the heart of Central Europe and Budapest is its cosmopolitan capital. The hangover of 40 years of Communist rule has been replaced by a stable thriving democracy within Europe and has dug a fertile ground for multinational companies to locate their regional headquarters here. The inflow of international employees for these companies is resulting in a high demand for rental accommodation. Typical levels of appreciation for properties in well-located areas have been seen at 10% up to 15% per annum, and coupled with an average rental yield of 5% and 7% for an apartment.*
According to information from the Hungarian Ministry of the Interior 25,000 foreigners have purchased real estate in Hungary over the last four years, 6,000 of which did so in the last year. What attracts these investors to Hungary and Budapest? 1. Property Prices Property prices in Hungary are a fraction of those in most Western cities. Prices in Budapest are at least of fifth of those in Dublin and London. The average price for a one bedroom apartment in Central Budapest is approximately €60,000 (HUF 16.4 million).** Many observers compare Budapest with Dublin in the mid-nineties where the Irish economy began to grow rapidly due to increased foreign direct investment, EU structural funds, and an educated work force. Between 5 and 10 years many expect prices in Budapest to approach those of Dublin. The population of Hungary is approximately 10 million, 2 million of which live in Budapest 2. Budapest is a Cosmopolitan EU Capital City In May 2004 Hungary joined the EU, since then Hungary has proven itself as one of the most dynamic new EU states. The population of Hungary is approximately 10 million, 2 million of which live in Budapest. Similar to Paris and Vienna Budapest is a visually stunning city. Called the ‘Pearl of the Danube’ Budapest is full of beautiful buildings, monuments, parks and intimate libertine cafés. The city is attracting new residents from not just within Hungary but also surrounding countries including Italy, Germany and Rumania. As one commentator put it “With it’s elegant buildings and its pavement cafés its reminiscent of Paris yet with the dynamism and bustle of a new and emerging Europe.” Unlike many ‘Hot Spot’ locations, Budapest is a proven property economy 3. Security of Investment Compared to a lot of new “Hot Spot”
property locations, Budapest is a capital city and
continues to be one of the most secure and consistent
property performers: The reasons for this include: Some facts about buying in Hungary: • As an individual you are limited to two
properties only. In order to buy more than two a
company will need to be established. However this
is not a complicated process and IPP’s partners
can assist investors with this. |
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