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.