Hungary is located in central Europe and is a great place to visit. Indeed it is frequently mentioned as one of the top 20 countries that any traveler must visit. Its capital Budapest is considered to be one of the most beautiful capital cities in the world. Being centrally located in Europe, it shares its borders with Ukraine, Romania, Slovakia, Croatia, Austria, Slovenia and Serbia.
Temperatures in Hungary top 40 degrees centigrade at the peak of summer and are known to drop down all the way to -20 degrees in the winter months. Hungary receives its share of rainfall due to the continental nature of prevailing weather patterns. The west usually receives more rain than the east and droughts are not an uncommon occurrence there.
Hungary is home to several World Heritage sites. Many of these are located in the capital city of Budapest as well as the historic town of Eger. Budapest is one of Europe's most beautiful, lively and enjoyable cities. The city is very green with numerous large parks, wonderful museums and a pulsating nightlife. With over 20 million visitors every year it is no wonder that Budapest is a must visit for any traveler in Europe.
Budapest is actually made up of two cities which lie on either bank of the Danube River. Buda lies on the west bank and Pest lies on the east. Budapest is an easy city to get around city and its underground rail system is responsible in no small way for this. There are three lines (yellow, red and blue) which criss-cross the city allowing tourist to get around Budapest quite easily. Budapest also has 25 tram lines which is a wonderful way for a tourist to see and explore the city. The most popular tourist destination is the Royal Palace. Within it lie the National Gallery, the Fisherman's Bastion and the Matthias Church.
In downtown Pest, one can also see the Hungarian Parliament which overlooks he Danube. St. Stephen's Cathedral and The Great Synagogue along with the Jewish Museum are other stops on any tourist itinerary. The Danubuis range of hotels is a decent mid range option to stay for travellers in Hungary.
Eger is located in northern Hungary and is a mountain country surrounded by the Matra and Bukk mountains. This historic town is popular with tourists because of the Egri Var Castle which is the prime attraction of this town. Besides this there is a weapons exhibit, mint museum, Gothic Palace and an art gallery for visitors to see. Eger is also a wine country with some of the best Hungarian wines being produced in this area. The most famous of the red wines produced in Hungary is the Egri Bikaver or Bull's Blood.
There is an amazing phenomenon called TiszavirÃ¡gzÃ¡s that can be observed in mid-June usually in Hungary. The Tisza produces swarms of mayflies ever year which look like flowers! While pollution has taken its toll in the past on this natural phenomenon, in recent years the population of these insects is again increasing.
Simply put, the capital of Hungary is as appealing as it can get. Your dreams of a vacation in a far-off exotic place come true the moment you land here. the visions that cross your eyes, the vistas that strike you like lightening, the great natural beauty that inspires awe and admiration from you and the inhabitants that make you feel welcomed from the word go, such is the city of Budapest.
Worry not, this is just the beginning, the city offers much more than this and it’s always a novel experience no matter whether it is your first, second or third trip here. Frequented by tourists from all over the world, it occupies a prime position in the ‘must-visit cities of the world’ list. As a result, you’ll always find exclusive international and cheap flights to Budapest doing the rounds. Having earned the distinction of being the cultural capital of Europe, city is replete with lively encounters, great sightseeing opportunities, magnificent ancient and modern architectural marvels, and interesting arts, heritage and culture-related sites. If you are the one who digs history or appreciate creativity in all forms, you’ve surely come to the right place. Budapest is a storehouse for all things artistic and creative, be it from the present or the past.
Witness vivid reconstructions from the city’s splendid past or admire the exquisite artefacts being stored at the museums, have a dekko at the talented works of international and local artists at the numerous galleries and exhibition centres, attend an avant-garde or traditional theatrical show, go for an opera evening and listen to some great symphonies, have a nice time at the live music concert or simply discover the city’s many ornate churches and other religious places. Apart from discovering and savouring the vibrant urban landscape that Budapest has to offer, it makes for a good idea if you book a guided tour and visit the city’s verdant and expansive countryside. An utterly picturesque and alluring place to be in, you’ll go clicking crazy there. Discerning tourists or budget travellers, family vacationers or business fliers, young students or elderly people, the city caters to one and all with equal élan. Therefore, you’ll face no trouble looking for a suitable lodging for yourself, there are one too many out here. Choose from among an array of luxurious accommodations, cheap hotels, villas, bed and breakfasts, holiday homes, motels and apartments. A highly entertaining nightlife, an elaborate wining and dining scene, and loads of places for you to shop till you drop, Budapest certainly delivers beyond your expectations.
Searching for property to buy in Budapest is quite an experience, given the fact that the city is at the heart of Europe and that it is the most sought after destination by property investors from all over the world. This means that there so many property listings in the city, which reiterates the importance of hiring a local real estate agent to guide you through the process, towards getting a home that meets your needs and one that is within your budget. But the thing is, there are several other factors that go into play - factors that are to be considered if you are to make the right investment. Familiarizing yourself in all the aspects/factors of home buying helps you to assess the value of the apartment. It will give you an idea of what you are about to invest in, and whether that investment would be worth it. Now, let’s take a look at some of these factors or aspects:
Amenities – nowadays, the focus has shifted in terms of what property investors are looking for. For instance, buildings with a wide array of services and amenities, including things like high-tech gyms, pet spas, or even simple laundry rooms or bike storage, tend to be more valuable when compared to buildings without. As such, you find that the prices in such buildings are a bit higher, which is worth it.
Bedroom/room count – an apartment layout influences the prices a great deal. For instance, if you find an apartment that has a gracious layout, you should expect it to cost more when compared to one that has an awkward layout. Also, a bedroom count in line with the apartment’s square footage is a major selling point. The more the rooms, the high the value will be.
City, river, or park views – apartments that are situated in areas where you are able to view a river, city skyline, or a park from your window in Budapest are some of the best-selling properties in Hungary right now. Now, considering these luxuries, no wonder you will find most of these apartments more valuable when compared to ones where you don’t have this kind of luxury. If you want to feel like you are on top of the world when you look out your window, then you need to invest in one of these.
Design – tasteful and recent quality renovations boost the value of any apartment – no doubt about that. For instance, an apartment that has perfect window placement and a gracious layout is always expected to sell more and at a higher price. This is the same case for any apartment that is decorated to appeal to potential buyers.
Esteemed building – compared to an average building, an apartment in a building that is best known for its great financials and an exceptional reputation will always sell at a higher price. So, when a property in Budapest, maybe you need to investigate how the management of that building is. Ask around! That way, even when investing in that property, you will feel like you are doing the right thing.
Fees (monthly) – when you find the monthly maintenance cost, property taxes or other common charges are high, expect the property’s value to be higher. This is because the price must take into account all these costs. On the other hand though, if the charges are lower, or below average, like in Hungary, then the price of the property will be slightly higher. So, you need to figure out the monthly charges associated with the property you are about to invest in.
Gold coast vs ghost town – in Budapest, of course, there are those areas that are considered to be prime locations to in buy a home. Areas such as Districts V, VI, VII, and IX are among the most ideal locations to invest. What you need to keep in mind is that the value of property in such areas is higher than in other locations since they are the most sought after. But if you want to pay less, know that you will have to find a property in second or third-tier locations, which are mostly further away from public transport, or overlooks areas with heavy traffic or even future construction sites. So, you will need to make an informed decision about where you want your apartment to be.
Homeowner history – property investors in Budapest prefers to invest in condominiums due to their ease of purchase and resale, and not forgetting the ability to rent them without too many restrictions. For this reason alone, you will find condos selling at a higher price when compared to other types of apartments.
Look past bad décor – looking past bad décor or décor that fails to meet or match their taste or style can for sure be the best way to obtain a lower purchase price. Some buyers don’t look at it this way. This is quite unfortunate though. So, if they are able to envision what is possible, they may acquire something that would become the best investment of their lives.
Put flaws that can’t be changed into consideration – pay attention to the following flaws when searching for property in Budapest:
You need to ask yourself the amount of time the property you are about to purchase will be in your possession – if your plan is to remain in the Budapest for a long time, maybe you shouldn’t mind about a small difference in the property’s value. You can negotiate as you can to get the best deal. Knowing the time you will be living in that house will definitely influence the kind of house you buy. If you are planning to stay for a short while, you probably won’t pay too much attention to the little details, after all, you will sell the property soon. But if you are planning to remain in the city for long, of course, you want to be in a house that you will be comfortable in, where everything is done as per your wish.
What’s more, if what we have seen in the past is anything to go by, real estate values do increase over time. This means that if the apartment you are about to invest in would hold you for a longer period of time, then attempting to exact the last dollar from the property seller in the negotiations is not the best thing to do, especially given that you really want that particular apartment.
The other thing is if your plan is to live in a particular house for a short time, resell and buy a bigger property in the near future, then you need to know that the prices may go up or down over time. What this means is that, if the market is down, you may not recover the full amount you paid for. You need to keep this in mind so that you will be able to make an informed decision with regards to your investment.
In summary, when buying property in Budapest, you need to consider these factors one by one, as it is the only way you will really know the value of the property you are about to invest in, and also whether the asking price is justified. Invest right!
Of course you know that negotiating for the price is a crucial aspect in the home buying process, right? It’s obvious you do! But the truth is, most property buyers assume that price negotiation is the only aspect in the whole process, which couldn’t be further from the truth. The price is just the first thing you negotiate for, as when the escrow is opened, that’s when the real deliberations start. After negotiating for the price, and have signed the purchase contract, the property buyer is supposed to negotiate for issues such as inspections, home warranty, repairs as well as the closing costs. This means that you need to be adequately prepared if you are planning to purchase a property, especially in Budapest, which is one of the main destinations for property investors in Europe.
First, you will need a property agent who understands the local market
When you consider all the things you need to negotiate when buying a property in Hungary, it literally pays to have an agent on your side – an agent who understands the property market in Budapest well. As a foreign investor, chances are that you don’t much about how the market is, so you will need to have someone who knows it better to guide you through the entire process. And by agent, we mean someone who is determined and is well-versed when it comes to negotiation strategies. Remember that you want to get the best possible deal, so you need an ace negotiator to help you with the negotiations.
The sellers may ask for more money than they expect to receive
If you take a look at property listings in Budapest – listing prices and selling prices – you will notice that the sold prices are mostly lower than the listed prices. The reason being, most property sellers are already highballing when listing their property, with an anticipation that the buyer will negotiate to try to get a deal. Property sellers, not only in Hungary, but all around the world always ask more than they expect to get, which means it’s totally ok for you to make an offer that’s below the listed price.
Prepare to get inside the seller’s mind
For you to get the best deal, you need to be a good communicator and negotiator. And for you to become one, you need to have a critical look at what the other side is saying and also decipher their self-interest or goals. For you to understand the seller, you need to understand why they are selling the property in the first place. It is by understanding the seller’s standpoint and motivation that you will be able to figure out a way to approach the negotiations. Try to find out if they are looking forward to retirement or are just relocating for work. With this kind of information, you will know better how to engage them in order to get what it is you really want.
Here is a list of the common negotiations
Price – this is the starting point, but it’s not the end. Once you’ve settled on the price, that’s when the bulk of your back and forth with the property seller begins.
Length of escrow – here, you need to be ready given that the seller may want a speedy escrow as they are on their way out. As a buyer though, you will benefit much more from a longer escrow as you will have the opportunity to ensure that any problems with the property are resolved.
Inspections – before buying a property in Budapest, ensure that a full inspection is carried out before you buy it. After all, it is a standard policy for an inspection to be done in all property sales in the country. The findings from that inspection will enable you and your agent to come up with a list of contingencies to include in your purchase contract.
Home warranty – the warranty can be paid for by the buyer or the seller. There are those sellers who choose to pay for the warranty as a way of preempting any responsibilities from them, in case there are problems with the property after closing the sale.
Closing costs – in a seller’s market, either party can pay for these costs. But, you, as the buyer, can offer to pay them so as to sweeten your offer.
Repairs – after the inspection, you may come up with a list of repairs needed on the property. Now, if there are repairs needed, you can do one of two things; you can either ask the seller to fix the problems or you can negotiate a lower price.
In summary, buying property in Budapest is not difficult and not easy either. But just make sure that you find all the help you can get if you are looking for the best deal.
Are you looking to buy property in Budapest as a foreigner? Well, you are among a growing number of investors looking to do so as well. There is a reason why foreign investors are attracted to this city this much. And before the end of this article, you will find what the reason is.
So, why Budapest?
This is the million-dollar question right here. So, Budapest, or as often referred to the ‘Paris of the East,’ is the capital city of Hungary, and is located right in the heart of Europe. It is a cosmopolitan city that has a rich cultural legacy. Over the last decade, the city has seen an increase in the number of people moving there. And truthfully, considering the city’s strategic location, affordability, culture, and history as well as the employment opportunities, you can understand why so many people are moving into the city.
As a result of this, the real estate market the city has transformed to become one of the most lucrative investment opportunities in Europe. The market now offers a great deal of investment yields as well as considerable value for money. And apart from the city’s strategic location, there are a number of other factors that have greatly contributed to the growth of the real estate market in Budapest. They include: the rising number of tourists coming into the country every year, the growing number of ex-pats across the city, and the fact that Budapest is the capital of student life in all of Europe.
An increase in the number of people coming into the city translates into an increase in demand for properties. Of course, all these people need to have roofs over their heads, which means that the need for properties will be expected to surge as we head into the future.
Should you buy or rent?
This is another crucial question that you need to ask yourself. See, responding to the rising demand for property in the city, the real estate market has attracted so many local and international property investors. The increasing number of tourists in the country has increased the demand for short-term lets in Budapest, as many of these tourists and visitors are considering to live in apartments rather than hotels. The ex-pats and student population increase have boosted the demand for long-terms lets significantly.
The low property prices, strong rental yields, and the weak currency have encouraged more and more investors to invest in the city’s property market. Also, due to the exponential growth of property values recently, the market has promised lucrative returns to the investors. But, a majority of these investors are in a dilemma, trying to decide whether to buy or rent property in the city. So, before making this decision, consider the following factors:
So, when you decide to buy, what should you consider?
So, after making your decision, and you’ve decided to buy, here is what you need to know:
The legal procedure – both EU and non-EU nationals are allowed to buy property in Hungary. For EU residents, their rights and obligations are similar to the Hungarian citizens. This means that they don’t need any permission when buying a property in the country. But as for non-EU nationals, they need to obtain approval from the local municipality.
Costs – in addition to the cost of the property, there is a 1.5% of the total cost on legal fees, a 4% stamp duty fees. There is also a 15% income tax on the annual rental income if you decide to rent your property. And as there is no property tax in the country, you will be exempted from tax if you decide to sell your property.
Mortgage – lenders in Hungary provides EU citizens with loans to fund their investments. But before you are given the loan, you are expected to make a 30-40% down, also you need to have sufficient monthly income. However, for non-EU citizens, it would be much harder to obtain a mortgage from local banks.
Are you looking to invest in a certain property in Budapest? Did you know that the difference between a property worth 150,000 euros and another one worth 200,000 euros may be only 5000 euro worth of upgrades, and not 50,000? You see, small changes in a property can drastically impact the functionality of the property, create a luxurious image, or just make the property easier to live in. Sometimes, it all comes down to managing first impressions amongst your potential buyers.
Having said that, there is something you need to know. There are many raw properties available in Budapest, Hungary, and most of them are located in stylish buildings with high ceilings in an excellent location. The architecture is characterised by its distinct art-nouveau or art-deco style, making it hard not to fall in love from the first sight. With some proper research, you can find a hidden piece of gem in a highly sought-after location for a fraction of the price of, say, a flat in London or in Paris, but the potential for renovation and upgrade is huge! Depending on the state of being of the raw property, sometimes, just a bit of stylish touch in the interior design, combined with a few pieces of vintage furniture and decoration, your flat would then have a completely new look and become so irresistible to its future buyers. At the end of the day, the pricing of properties in Hungary has little to do with the amount you paid for when buying the property, or how much you spent renovating it. The value of the property is based on what buyers perceive the value to be. Look, this is not to say that you can hide anything faulty or cover anything that needs to be repaired in the structures. As a matter of fact, if there are any such things, they should be disclosed to the buyers in advance.
So, as a property investor, here is another way that you get the best return on your property investment in Budapest: buy-renovate-sell, namely, you buy a property in a poor, not so good shape, renovate it, and re-sell it to future buyers with a much higher price in a short period of time.
Work on the exterior – it’s obvious that much of a buyer’s judgment on a property is based on the very first impression, which is the property’s exterior. So, as an investor, ensure that you create an element of love at first sight on the property you intend to sell. Most homebuyers in Budapest are attracted by the properties’ curb appeal that they even tend to overlook other small problems in their interior. If a potential buyer gets personally attached to the property, you can be sure that they will offer you irrational amounts just to own it. What’s more, focus on things like tidying the paths leading the property, replanting the grass, repainting facia boards and replacing rusting gutters, which will give the property a completely new look thereby attracting potential buyers.
The kitchen and the bathroom – kitchen and bathroom makeovers generally offer a good return on your investment. This is why the investor should pay a little more attention to both the kitchen and the bathroom when renovating the property. By doing this, you will be able to effectively remove the necessity for potential buyers to redo it, as they will be basically be adding to the purchase price. If this is the case, rest assured that no one will buy that property, and if it’s bought, it will be on a price that is way lower than anticipated.
Simply remove all the outmoded and dirty stuff such as mismatched or chipped tiles, aging appliances or bad paint choices, from these areas. If the cupboard doors in the kitchen are in good condition, then you may consider upgrading them by, let’s say, adding new handles. Also, chipped laminate or stained tiling grout should be cleaned thoroughly or should be removed and replaced. These changes will give the kitchen and bathroom a really good refreshing look.
If you are considering a complete renovation of both the bathroom and kitchen, just ensure that everything remains as simple and as appealing as possible.
Structural problems – if the property you are looking to renovate isn’t in a bad shape, but not in good shape either, remedying the defects throughout the property should always be at the top of your list. We know there are those investors who may be tempted to simply cover them up, but the truth is, building surveys usually uncovers these faults, and they will deter potential buyers away. In the Budapest real estate market, there is no single seller who would make an offer on such a property.
Increasing natural light – in any property, good lighting makes a huge impression, and it lifts the spirits of everyone who walks into those properties. So, by adding skylights in the dark rooms or just opening up areas with larger windows or bi-fold doors, the chances of that property selling for a much higher price will get higher.
Colors – during renovation, you should always try to avoid feature walls or any other personal color choices, especially given the fact that color is subjective. After all, many homeowners, after buying the property will paint over it. So, as an intelligent investor, you should consider putting up serviceable, neutral and clean walls and everything else, and allow future owners to add their own color of choice once they make the purchase. This makes the buyer feel included in the decision, or rather, the buyer feels that the investor had him/her in mind when renovating the home, and it will drive the sales price up.
Flooring – timber floors are becoming quite common in Budapest, where most people opt to put carpets only in their bedrooms. So, when renovating a property with timber floors, try as much as possible to match the existing floor, or replace the floorboards entirely in order to create a room-to-room flowing effect throughout the house. This will be super appealing to the buyers. In fact, if you do it well, buyers will pay a fortune to have that property.
Basically, the property flipping business in Hungary, Budapest to be specific, is quite common and is very profitable. All you have to do is first conducting a proper research, and once finding the right "candidate", giving it a tasteful touch. This way, you will have a very successful venture.
*We offer off-market raw property investment opportunities in Budapest, Hungary. If you are interested, please contact us directly.
The Hungarian capital, Budapest, is evolving each passing day – if you are to wander around the city, in all the districts, you will find several construction sites, freshly dug pits for future structures or buildings under renovations. But, if we were to ask ourselves; where exactly is the city headed? Or better yet, what will Budapest look like after all these projects are done? Well, that, we will have to wait and see. For now, let’s see some of the projects that are lined up for Budapest!
Currently, the territory of Kopaszi dam looks like a good mini beach close to the river surface, and has an extremely huge area covered in green, tropical-like plantation, and also has a number of restaurants and bars that are lining up in wooden houses. But if we were to literally look at it a bit further, what we are seeing are massive grey pillars and blocks that are emerging towards the sky. This territory is brand new and it is known as Budapart, and is located near the riverbank, and is right behind Kopaszi gat. In this area, some of the main businesses that will be featured will include modern hotel catering facilities and office complexes.
The most fascinating aspect of this project is the MOL headquarters offices, which are in a 120 meters tall building. According to the critics of this particular structure, they say that it will spoil the traditional and monumental image of the city. Based on their argument, they say that the building will be visible even when you only want to wander at Gellert-hill. But hey! We are talking about growth here, so having such a structure in the area can only attract more businesses and people, which is a good thing as it will boost the economy of the area.
The concept of the ‘Southern Gate’ wasn’t released up until two years ago, and during that time, it was – and still is – one of the newest conceptions. When the news about the complete re-thinking of Inner-Ferencvaros, which is District IX, came out, and not forgetting the Northern region of the Csepel Island, it was widely published, and it became the centre of attention to many investors.
The northern part of Csepel had been abandoned for years, and frankly, it is too close to the heart of the city to let the territory remain idle any longer. The riverbank side of Ferencvaros, that is after you’ve passed the massive & modern office buildings, the theatre, and MUPA has really developed. Therefore, the joint renovation and connection of these two areas could only result in an enlarged downtown with superb infrastructure.
The Southern Gate plans include a bridge connecting Csepel and Ferencvaros river bank sides, an athletics arena, new apartments, dormitories, and a few office buildings.
This was probably the most controversial ongoing development project in Budapest. There were several demonstrations against the redevelopment of one of the largest green areas of the city. There was a civil group, referred to as the ‘Park Protectors’ who were constantly trying to withhold the destruction of the plantation, in an attempt to preserve as much green territory as possible. And in as much as there is need to protect the green environment around us, we have to admit that such a project can only do more good to the community given the fact more people will be employed, and also, after completion, the development will boost economic growth in the city.
Anyway, let’s ask ourselves, what exactly is planned to happen in Varosliget project? There are some facilities and institutions that are being constructed in that park. They include:
With these structures in the city, Budapest will be even more attractive than ever to local and foreign property investors.
Road Vaci – offices
When you take a ride along the super long Vaci Road, one of the things you will notice is: quite a number of office buildings and office parks and also a good number of run-down buildings, just lying there, idle. But with this particular project, a lot is expected to change. For instance, the idle building will be reduced and the more modern office parks will keep increasing. And even more contemporary, future workplaces and high-class buildings will emerge from the ground. This process is quite effective, especially with the reconstruction of the metro line M3, considering that the Northern line is already complete.
Also, the area behind the Westend mall is included in the process of being redefined, to turn it a place called to as the Granite Pole. The new complex is expected to serve a number of recreational purposes, new apartments, offices, and residences.
District VIII – inner Jozsefvaros
In the past, the 8th district hasn’t had the best reputation. Even with the changes and the modernisation that took place, people still had a few negative thoughts about the region. But the construction of metro line M4 and the Janos Pal Papa square, have significantly boosted the district's reputation. Also, considering the green areas, fountains, the picture square, and the amazingly modern houses have attracted students, foreigners and families to live in the area.
Also, currently, there are plans to reconstruct the heart of the district – Orczy Square – which is a critical centre of transportation all around the city. There is also the Blaha Lujza square, which is closer to the heart of Budapest and is one of the most significant junctions in the city, but as of now, it still doesn’t serve its purpose effectively. But with the new projects that are about to take place, the entire square will be redesigned, the Corvin shopping centre will get a new façade, the underpass will be renovated, and the ground parking lots will be replaced with trees and other plants, and so are all the unnecessary concrete-covered areas.
The diversity in the Hungarian capital is quite fascinating, and the districts in the city will see a lot of improvements in the near future.
We normally ask ourselves: how can we invest in the real estate business? Or, is it a safe investment? Well, these are valid questions that need proper answers – after all, no one wants to see his/her investment go down the drain. Now, the European real estate market is considered to be one of the best in the entire planet, such that even during the turbulent times of economic recession, you will find investors looking to buy properties with the hope of things getting better. Year after year, despite several challenges here and there, the property business keeps generating more profit. However, the situation varies from country to country. If you were to ask property investors individually, they would tell you that some of the emerging European capitals are doing way better and are more profitable than the traditional cities such as Paris and London. And frankly, they may have a point.
Let’s focus on one of the underestimated cities in Europe, Budapest. Since 2014, property prices in the Hungarian capital has been increasing year after year. For instance, from 2017 to 2019, the prices increased by 35 percent, and as head into the future, market forecasts promise to continue increasing. What’s more, during the global financial crisis in 2008, Budapest remained as one of the cheapest cities. And after the economic recession blew over and real estate investors were looking to broaden their areas of interest, Budapest was at the center of the attention and media coverage.
Many consider 2014 to be the turning point for the real estate sector in Hungary. Loose monetary policy restrictions, combined with super strong macroeconomic performance has contributed to the growth of the housing industry in the country. In 2015, the capital of Hungary was ranked as Eastern Europe’s most attractive city. Because of these reasons and many others, Budapest has seen a great influx of foreign capital in the real estate sector. And when there was an upheaval of rental prices in other European cities, the prices in Budapest were still lower, which gave way to huge property investment returns. It was during this time when real estate investors compared Budapest to other European cities, where they figured out that the property rental fees were more attractive in Budapest.
Not only do new investors enjoy several favorable conditions, but those who bought property before the financial crisis in 2008 are enjoying it even more. After the crisis, there are so many people who expected foreign property investors to sell their properties in Budapest, only for reality to prove them otherwise. According to research done by Tower International – which is one of the biggest property management company in Budapest – investors who sold their properties was around 20 percent only. This finding was confirmed by several other property companies, including ManageRent Property Management Firm and EuroCenter properties. So, this means that there was no massive sale of properties as many people thought there would.
Something else that attracts investors to Budapest is the diversification of nationalities. A good number of property investors in Budapest are foreigners from different countries. The reason why foreign investors come to Budapest in large numbers is that they see great potential in the country’s real estate market. Also, based on the increase in housing prices in recent years, we can comfortably say that foreign real estate investors are pretty satisfied with the changes in the market. This is reiterated by the fact that the current prices have already exceeded the pre-crisis housing prices, which is proof that the market has been thriving ever since. Both local and foreign investors have been very active in the real estate market in recent years, thereby contributing to the growth experienced in the market in Budapest.
Rental apartments in Hungary, particularly Budapest has proved to be the most lucrative investment of all. The reason being, the current Hungarian higher education system has attracted a lot of students, both foreign and local. For instance, in 2019, the number of students studying in the country was estimated to be around 330000, where 300000 were Hungarian students and 30000 were foreign students, and most of these students were schooling in Budapest. The fact is, all these students, local and foreign, are looking for a place to stay in the city; in real estate, you would say that there are over 300000 tenants looking for places to rent.
Studio apartments still remain to be the most sought rentals by students in Budapest. The rental prices for these apartments have increased in recent years, where the average price for a studio apartment in Budapest is now somewhere between 350 and 500 euros depending on the quality and location of the apartment. Even though the most valuable apartments are in the immediate vicinity of the schools, most students prefer the ones in the 5th, 6th and 7th districts.
When compared to Hungarian students, the solvency of foreign students is pretty high. And frankly, the presence of foreign students in the country not only benefits the educational institutions but the real estate market and the economy too. The majority of the students live in rented flats, which is good news for investors in the city. According to research conducted in three universities – University of Pecs, University of Szeged and the University of Debrecen – foreign students spend over 22 billion forints on entertainment, housing, and living, plus tuition fees which are estimated to be 21 billion. Investors are aware of these facts, and that’s why they have been flooding the real estate market in Budapest, trying to capitalize on this amazing opportunity.
Additionally, the culture in Budapest also attracts property investors from all over the world. For instance, the price of tickets for the ballet or opera is only a fraction of other European cities. For this reason, people come to Budapest just to indulge in the top quality performances during the winter.
In conclusion, Budapest is an exciting, safe and fun place to invest, and with everything the city offers, it won’t be surprising to see the number of foreign investors increasing even more in the future.
Budapest has, of late, become a popular destination for property investors who are looking for investment opportunities that would yield high returns. These investments have restored the architectural prowess of the city as well as a thriving contemporary culture, which is driving even more investments thus boosting the demand for commercial and residential property. The Hungarian capital is divided into 23 districts, which are separated into 2 sections along the Danube River, referred to as Buda and Pest. Whenever foreign investors visit Hungary, Budapest in particular, they normally prefer to invest in the districts located in the downtown areas. Districts V, VI, and VII have some of the best neighborhoods in the city, and it’s where most investors hope to invest. These neighborhoods boast beautiful parks, dynamic bar and restaurant scenes, which are all nestled under the historical backdrop, making them the prime target for property investors.
To help you decide on where to invest, we have summarized the most popular districts among property investors. These are areas that due to their amazing neighborhoods and magnificent architectural composition, have become a prime target for investors looking to invest in Budapest. They include the following:
Districts in Pest
District V – this district is located at the heart of the capital, and it’s the commercial, political, financial a tourist center of the country. It is in this district where the Hungarian parliament is located, as well as Vaci shopping street and St. Stephen’s Basilica. This means that District V is where tourist attractions, fine dining, and well-kept neighborhoods come together. Property in this district has quite high demand, which makes it the perfect location to invest in real estate.
District VI – this is the other district that property investors are crazy about. The district is centrally located in a convenient location that’s lined with art nouveau residences and magnificent neo-renaissance mansions. The district has a bustling neighborhood which is a tourist hotspot, and, without a doubt, the most amazing location for incoming property investors. There are major renovations being carried out in the district, making it even more ideal for real estate investment, as properties will be in even more demand once the improvements are done.
District VII – in this district, its inner areas are known to be the historical Jewish quarter of Pest, which has transformed into the high energy nightlife hub it is today. Taking into account all the districts in Budapest, this is the most densely populated district, and being centrally located makes it the perfect place for short-term tourist rentals. As a property investor, investing in rental apartments can be the perfect investment, given the fact that tourists flood the district from all over the globe, and they will for sure need a place to stay when there are in town.
District VIII – the district is located on the outskirts of Budapest. It is less crowded, and if you are looking for a more affordable alternative to the central districts, then this is the place to be. As the district was initially built in the 18th century, and a suburb of pest, it has some impressive historical buildings that are just exceptional, like the original parliament building. What’s more, the district is in close proximity to downtown areas. Now, even you have to agree that this is an ideal location to set up a residential home, especially considering its quietness and easier access to the larger Budapest city.
District IX – this district has an upcoming and dynamic neighborhood, home to a community of students as well as families alike. The district plays host to universities such as Semmelweis and Corvinus, and also has a Raday Street which has restaurants, bars, and music venues, thereby creating a vibrant youthful ambiance. It also has the Great Market Hall as well as the open green spaces, and it very close in proximity to the city center, which makes it the ideal option for real estate investments. This also is the perfect environment to invest in rental apartments given the number of students it plays host to, and as you know, students need places to rent.
District XIII – this district was initially built as an industrial area, but later in the 1920s, it was rebuilt as a residential district. Given the District’s proximity to the downtown core as well as the Margaret Island, it has become a desirable neighborhood. Property investors, both local and foreign, are choosing to invest in the district due to its quietness as well as its magnificent architecture. It is located north from District V and it has a lot of Bauhaus style buildings.
Districts in Buda
District I – district I is entirely characterized by its rich historical heritage and its rolling hills. It home to Buda’s historic quarter. It also plays host to a number of famous buildings such as the extremely famous Buda Castle, the Fisherman’s Bastion, the Hungarian National Gallery and the famous St. Matthias Church. The historic buildings in the district led to it being referred to as the castle district. And as this name suggests, the neighborhoods are just timelessly beautiful, which is why property investors are so focused and willing to capitalize on this beauty.
District II – this is another peaceful and quiet district in Budapest. People looking to reside in a quiet environment, away from the busy downtown, should look into this particular district. The green spaces plus the quiet neighborhood makes it the perfect location to raise a family. What’s more, with an efficient transport system as well as the new luxurious condominium developments make it even more demanding for investors looking to set up residential properties in the region.
Basically, these are just some of the most popular districts in Budapest, which are seeing an increase in property investments due to their ideal locations and their magnificent neighborhoods. So, foreign real estate investors, who were wondering about the areas to invest in Budapest, with this information, you will be able to make a much more informed decision based on your preferences.
As an investor seeking high returns in real estate, then you definitely know of Budapest – as it’s one of the most favored destinations for property investments. Positive forecast in the future plus the high yield you get from investing in the city appeal to property investors from all over the world. Now, as you may know, foreign investors are completely new to the country and may not be completely familiar with the different aspects and terms used with regards to the buying and selling of properties in the country. The truth is, the real estate market in Hungary is pretty similar to other European markets, but, given the unique historical architecture as well as the continuous building maintenance in the country, there are certain terms used in the market that might sound strange to foreign investors. So, in this article, we will try to make things simpler for you by listing and explaining some of the common terms used in the real estate market in Budapest.
When comparing different properties in Budapest, one of the major aspects that you will have to consider is the type of heating system used. As the country becomes super cold during the winter, it is crucially important to have an efficient heating system that provides the required comfort, while maintaining a reasonable usage cost. So, the following are the common heating types mostly used in properties in Budapest.
Building central heating – this is the central heating system in a building. The building’s occupants are the ones who decide when to turn on or off the heating, and it’s usually turned on during the winter.
Central city heating – this is a heating system that is mostly operated by the capital’s municipality. The main disadvantage of the type of heating system is the fact that when adjusting it, it’s not possible to adjust for each flat separately – all the flats receive equal heating. And as some buildings really need the heating more than others, when you provide the heating equally, it may be uncomfortable in some of the flats.
Circo heating – this type of heating is individually controlled and is generated through heating water and passing the water through radiators that are installed throughout the entire flat. This heating system is controlled through a thermostat installed inside the apartment. This heating system is common in many properties in Budapest, as it offers the perfect balance between effectiveness and costs.
Gas convector heating – in this type of heating, there are gas convectors that are installed in the entire building and needs to be manually operated for it to provide the required heating. This type of system is quite old and is not that common though.
Electrical boilers – these boilers are used for heating in the building and also for supplying hot water throughout the building. In some cases, a gas-operated heating system provides heating in the building, while the boilers supply hot water. On average, the gas heating system is more reliable and offers better value than electrical systems.
Types of properties
As stated earlier, Budapest is famous for its exceptional architecture, breathtaking sights and also its rich history. Some of these houses were homes to known-figures and aristocrats, and once you are on the inside, you will see some indications for that in the lavish and splendid exterior and interior designs. There are also new houses in Budapest that are built in classical compounds, such as the famous Gozsdu court, which are pretty expensive, and popular when compared to other properties in the same region. The following are some of the terms used in the market that relates to the type of properties.
Classical properties – these type of properties are pretty common in the innermost regions of Budapest – areas such as district 5,6,7,8 and 13. A majority of these buildings are several decades old. There are some houses that have already been restored, while others are still in their original conditions. But when a property that is about to be sold is found in a classical building, the owners usually adjust them to meet the investor’s requirements.
Renovated property – this term stands for a property that has undergone renovation and refurbishment. The degree to which the property is to be renovated varies, where in some cases, the property will be renovated completely, while in others, the renovation is only cosmetic.
Newly built property – this one is self-explanatory. It refers to a property that has been built recently. This type of property is mostly found in Budapest’s downtown areas. Now, when it comes to new properties, you will normally find that their prices are higher, have newer heating systems and also have higher common monthly costs.
Brick apartment – frankly, properties that are within classical buildings are quite common are popular among foreign investors. The downtown areas of Budapest is where you will find these properties. Some of the reasons why the brick apartments are common among investors are: they are sturdy; they have authentic wooden floors that are of high quality; and also have high ceilings.
Panel apartment – these properties were built between the 1960s and 1980s, during the communist era. These properties are constructed with thin concrete panels and are mostly located on the outskirts of the city. For this reason, they are not that common among foreign investors.
Udvar apartment – some newly built properties and a majority of the classical buildings in Budapest have an inner courtyard, which is mostly referred to as udvar, with some of them facing these courts. This style attracts a lot of investors, and this explains why most of them love these apartments.
Common costs – now, when you hear the term common cost in Budapest, just know that it stands for the maintenance fee for the property. It usually covers all the costs that are associated with the purchase and ownership of the property.
American style kitchen – this term means that the kitchen is not separated from the dining and living room area, but is in an open space where the kitchen forms an integral part of the living room. This style looks spacious as there is no wall that separates the two.