| The Right Location |
| Where to Buy Investment Residential Property in Budapest |
The city of Budapest is divided by the Danube river into two cities: Buda and Pest.
There are also 23 administrative districts in Budapest. The number of the district
largely sets the property price.
The flat and busy Pest side is the location for the city’s financial, administrative,
commercial and retail centers. The primary areas of interest for the residential property
investor are the central 5th and 6th districts.
On the hilly and residential Buda side of the city, the prestigious residential areas of
the Buda hills are becoming a favorite area amongst longer-term investors, since
expatriate families tend to rent long term in these pleasant, green neighborhoods, near
international schools.
There are also 23 administrative districts in Budapest. The number of the district
largely sets the property price.
The flat and busy Pest side is the location for the city’s financial, administrative,
commercial and retail centers. The primary areas of interest for the residential property
investor are the central 5th and 6th districts.
On the hilly and residential Buda side of the city, the prestigious residential areas of
the Buda hills are becoming a favorite area amongst longer-term investors, since
expatriate families tend to rent long term in these pleasant, green neighborhoods, near
international schools.
Location
is the key to any property
investment
decision in Budapest!
is the key to any property
investment
decision in Budapest!
The latest trend of Budapest investors hoping for higher capital appreciation:
Good quality residential property in the most wanted neighborhoods of the green,
residential Buda hills, from 2 bedroom flats to luxury villas. These are the locations
where the more fortunate Hungarians prefer to reside, as well as the expatriate
community, with an even growing number of international schools.
For expatriate families who tend to rent long term in Budapest, districts 12 and 2 are
the most desirable and also most expensive areas to live. They are scenic, and parts of
them look like you are in the country. Search in parts of district 1, 2, 12, 11 (Sasad),
22 (Budafok) and 3, and even a number of Buda Suburbs, including Budaörs,
Diósd, Törökbálint, Biatorbágy, Nagykovácsi, Budakeszi and Solymár. Check our
expatriate housing page for ideas.
Buda side districts with investment potential
Property Value Map | Road map of Buda and its south-western suburbs
District XI (11) - The largest Buda district includes the more central Kelenföld, which
houses two large universities, the Technical University and the ELTE University of
Sciences with lots of their dorms; as well as famous Gellert-hegy and scenic Sasad-
Sashegy (Eagle Hill).
A new subway-line called Metro 4 is under construction, which will have all of its 5 Buda-
side stops in district 11, making the busy inner (Kelenföld) part of the district an even
better investment spot and a more convenient place to live.
The Sashegy and Sasad areas are quite nice family neighborhoods, though they are
more convenient with a car, similarly to most nice places of Buda. I live in this area, and
my teen-age offsprings get around quite well on public transportation (numerous bus-
lines and tram 59). International schools are also close proximity.
District XII (12) - Buda hillside: the most prestigious and exclusive residential districts
of Budapest, the home of the President and Prime Minister among other political
luminaries. Nice, green, upper-class and expensive, being the most desirable location
for the better-to-do Hungarians as well as expatriate families and international schools.
There is an oversupply of new apartments in Budapest, therefore you should expect a
lowish rent and furnish well. Your target market will be expats rather than Hungarians.
The average wage here is around € 500 / month and a typical wage for professional
Hungarians is around € 1,000 / month. Your rental income is likely to be around € 400 +
/ month but depends if the flat is bright and well furnished. This part of District 13 is
being touted as a new business center for Budapest in the next few years, but at the
minute, it doesn't look very attractive and isn't really that close to the proper city centre.
District XXII (22) Budafok - Up-and-coming district with a lot of green. If you want to live
in the green own a car, this is probably the most comfortable and definitely the most
inexpensive district within Budapest city limits. A great advantage for English-speaking
families with kids: the nearness of ICSB (International Christian School of Budapest)
and the large and modern Campona mall.
Pest-side districts with investment potential:
Property Value Map
If you are not very familiar with the city, stick to central districts (particularly 5 and 6) and
as close to main thoroughfares as possible, e.g. Andrassy ut or the Korut. I wouldn't
really recommend new apartments for the most part. They tend to be overpriced, low
quality and ugly. For the purchase-refurbish-sell deal, the quickly developing districts
7, 9 and 13 are also recommended. The 5th, 6th, 7th, 9th districts (in Pest), and
11th (in Buda) are where the universities are located with many foreign students who
are looking for apartments to rent, especially along the metro lines. It is not enough,
however, to go by districts, as the prestige of smaller neighborhoods greatly varies.
The most desirable part of the city for singles (students and businessmen) is the
central district 5, followed by the rapidly developing western areas of District 6, which
has undergone something of a renaissance in recent years, especially the streets near
Andrássy ut. Other areas with good investment potential include the central end of
District 7 as well as parts of the rejuvenated District 9, particularly around Ráday
Street, and district 13, between the Danube river and West-End City Center.
District V (5) (and parts of VI) are the most likely areas for higher capital appreciation
in the smaller investment category, especially near the Basilica in District 5 -
Hercegprimas utca, Sas utca, Oktober 6 utca as well as all streets near the Parliament.
This is the most desirable city center location and is quiet and pretty as well as close to
businesses as well as everything else. With some luck you can still get great renovated
one bed apartments on the best streets in District 5 for just over € 100,000
District VI (6) boasts the famous Andrássy Boulevard, Heroes' Square, the trendy
Oktogon and Liszt Ferenc Squares with their cafes and restaurants, a favorite area
among foreign tenants. The smaller, quieter streets near Andrassy (such as Sziv,
Szinyei Merse, Munkacsy) are pleasant places to live. An achievable rent of 300-350 for
a furnished 1 bed in these and similar streets is a realistic expectation. I would
definitely furnish as you will find it hard to rent otherwise. 90% of people who rent in the
city centre are non-Hungarians, with no furniture of their own.
District VII (7), the traditional Jewish Quarter behind the Great Synagogue, has seen
tremendous investment recently, with buildings renovated rapidly and parks cleaned up
beautifully.
Dohany utca - Akacfa utca location is good, close to everything, but by no means
considered a prestigious area. Rental prospects will probably be quite good. Price
seems okay to highish. Renovated 80 m2 second hand apartments would more than
likely rent for € 450 / month. Students won't be able to afford the rents if they are to be
around the 6% mark. (The average salary in Hungary is around € 500-600 / month). The
surrounding area is okay. It's not that close really to Blaha Lujza ter, which is not a nice
place to be yet. However, the city is trying to re-develop this square and also, a new
luxury hotel (New York Palota) just opened right beside it.
The Madach ter area near Deak ter is an extremely central location with lots of
businesses close and should be rentable. It became a lot prettier lately than it was
before.
District VIII (8) - I wouldn't really recommend investing in most of 8 although there are
fairly good parts. But the worst parts of central Pest are also located here and sold to
unaware foreigners (areas in or around Alfoldi Street, Kun Street beside Erkel Szinhaz
Theatre, Fiumei ut, Rakoczi ter, Orczi ter).
It would be more difficult to rent out apartments here than in the other districts of central
Pest. Despite being quite close to the centre, district 8 is not a desirable area. People
believe crime is higher here and it was traditionally the centre of prostitution in the city.
You don't actually experience that much of it any longer, but if you were to ask any
Hungarian where the worst part of the center was, 90% would agree with me. Many of
the new buildings in this area also seem to be aimed at foreigners, who may not be
aware of local opinions.
Closer to Kalvin ter is a lot better, such as part of Baross utca, but even still, there is
nothing so amazing about that area either.
District IX (9) - Trendy bars and cafés are springing up on Raday utca and in the
section bounded by the Nagykorut, attracing many university students.
Refurbished older parts close to the Korut, such as Raday utca, are good, but new
builds further out tend to be ugly and overpriced. The government spent a lot to improve
the area but be careful to spend your money on a new apartment here. You will very
probably have problems renting it out, and when it comes time to sell, you may also run
into difficulty. For the price of a poor quality new apartment here, you can get a second
hand apartment in district 6, beside the Opera and just off Andrassy ut, right in the
center of town.
If you have made up your mind to buy a new apartment anyway, the part of district 9
close to the Danube is likely to be a good investment. The new National Theatre is
located close by as well as more centrally located Raday utca, which is one of the best
streets over here for restaurants and bars. Some of the popular Summer bars are also
within walking distance. Gizella Park development is on a busy street, so be careful
which apartment you go for if you do decide to invest here as noise could be an issue.
Tenants will probably prefer apartments with overlooking inner garden. The design
looks fairly good compared to other new builds in the city.
District XIII (13) - A well to do location with some history and many antique shops,
directly serviced by a metro line. Its best location is Szent Istvan Park and Újpesti
Rakpart between Szent Istvan Park and Margit híd (Margarete bridge).
What to buy as an investment
There is a definite demand for good quality but not luxury, inexpensive, 4-5 bedroom
family homes in the Diosd area (Buda side suburb).
There is a moderate demand for medium to large size high quality and luxury
apartments in the central Buda (1, 2, 11, 12) and Pest (5, 6, 13) districts at the minute.
If you furnish your apartments to a high standard and don't overcharge, you would be
able to rent them out fairly easily.
For newly builts, however, capital appreciation may not be so high as these apartments
are already pitched around 40% higher than local second hand properties. More >>>
Outside Budapest
Consider the Balaton region. Balaton, the "Hungarian sea", is the largest lake in
Europe, and benefits from having a pleasant micro-climate that makes it a major tourist
destination not only for Hungarians, but particularly for Austrians, Germans and Italians.
RyanAir now flies direct from Stansted, so it is likely that more British are going to be
heading to the Balaton resorts over time. Property prices are still pretty low, since flocks
of investors have not yet discovered the region, and there is not a lot of development
happening, but the prospects for growth look very positive. Balaton could be worth a
look if you are looking to buy in a holiday destination and the seaside is not for you.
Good quality residential property in the most wanted neighborhoods of the green,
residential Buda hills, from 2 bedroom flats to luxury villas. These are the locations
where the more fortunate Hungarians prefer to reside, as well as the expatriate
community, with an even growing number of international schools.
For expatriate families who tend to rent long term in Budapest, districts 12 and 2 are
the most desirable and also most expensive areas to live. They are scenic, and parts of
them look like you are in the country. Search in parts of district 1, 2, 12, 11 (Sasad),
22 (Budafok) and 3, and even a number of Buda Suburbs, including Budaörs,
Diósd, Törökbálint, Biatorbágy, Nagykovácsi, Budakeszi and Solymár. Check our
expatriate housing page for ideas.
Buda side districts with investment potential
Property Value Map | Road map of Buda and its south-western suburbs
District XI (11) - The largest Buda district includes the more central Kelenföld, which
houses two large universities, the Technical University and the ELTE University of
Sciences with lots of their dorms; as well as famous Gellert-hegy and scenic Sasad-
Sashegy (Eagle Hill).
A new subway-line called Metro 4 is under construction, which will have all of its 5 Buda-
side stops in district 11, making the busy inner (Kelenföld) part of the district an even
better investment spot and a more convenient place to live.
The Sashegy and Sasad areas are quite nice family neighborhoods, though they are
more convenient with a car, similarly to most nice places of Buda. I live in this area, and
my teen-age offsprings get around quite well on public transportation (numerous bus-
lines and tram 59). International schools are also close proximity.
District XII (12) - Buda hillside: the most prestigious and exclusive residential districts
of Budapest, the home of the President and Prime Minister among other political
luminaries. Nice, green, upper-class and expensive, being the most desirable location
for the better-to-do Hungarians as well as expatriate families and international schools.
There is an oversupply of new apartments in Budapest, therefore you should expect a
lowish rent and furnish well. Your target market will be expats rather than Hungarians.
The average wage here is around € 500 / month and a typical wage for professional
Hungarians is around € 1,000 / month. Your rental income is likely to be around € 400 +
/ month but depends if the flat is bright and well furnished. This part of District 13 is
being touted as a new business center for Budapest in the next few years, but at the
minute, it doesn't look very attractive and isn't really that close to the proper city centre.
District XXII (22) Budafok - Up-and-coming district with a lot of green. If you want to live
in the green own a car, this is probably the most comfortable and definitely the most
inexpensive district within Budapest city limits. A great advantage for English-speaking
families with kids: the nearness of ICSB (International Christian School of Budapest)
and the large and modern Campona mall.
Pest-side districts with investment potential:
Property Value Map
If you are not very familiar with the city, stick to central districts (particularly 5 and 6) and
as close to main thoroughfares as possible, e.g. Andrassy ut or the Korut. I wouldn't
really recommend new apartments for the most part. They tend to be overpriced, low
quality and ugly. For the purchase-refurbish-sell deal, the quickly developing districts
7, 9 and 13 are also recommended. The 5th, 6th, 7th, 9th districts (in Pest), and
11th (in Buda) are where the universities are located with many foreign students who
are looking for apartments to rent, especially along the metro lines. It is not enough,
however, to go by districts, as the prestige of smaller neighborhoods greatly varies.
The most desirable part of the city for singles (students and businessmen) is the
central district 5, followed by the rapidly developing western areas of District 6, which
has undergone something of a renaissance in recent years, especially the streets near
Andrássy ut. Other areas with good investment potential include the central end of
District 7 as well as parts of the rejuvenated District 9, particularly around Ráday
Street, and district 13, between the Danube river and West-End City Center.
District V (5) (and parts of VI) are the most likely areas for higher capital appreciation
in the smaller investment category, especially near the Basilica in District 5 -
Hercegprimas utca, Sas utca, Oktober 6 utca as well as all streets near the Parliament.
This is the most desirable city center location and is quiet and pretty as well as close to
businesses as well as everything else. With some luck you can still get great renovated
one bed apartments on the best streets in District 5 for just over € 100,000
District VI (6) boasts the famous Andrássy Boulevard, Heroes' Square, the trendy
Oktogon and Liszt Ferenc Squares with their cafes and restaurants, a favorite area
among foreign tenants. The smaller, quieter streets near Andrassy (such as Sziv,
Szinyei Merse, Munkacsy) are pleasant places to live. An achievable rent of 300-350 for
a furnished 1 bed in these and similar streets is a realistic expectation. I would
definitely furnish as you will find it hard to rent otherwise. 90% of people who rent in the
city centre are non-Hungarians, with no furniture of their own.
District VII (7), the traditional Jewish Quarter behind the Great Synagogue, has seen
tremendous investment recently, with buildings renovated rapidly and parks cleaned up
beautifully.
Dohany utca - Akacfa utca location is good, close to everything, but by no means
considered a prestigious area. Rental prospects will probably be quite good. Price
seems okay to highish. Renovated 80 m2 second hand apartments would more than
likely rent for € 450 / month. Students won't be able to afford the rents if they are to be
around the 6% mark. (The average salary in Hungary is around € 500-600 / month). The
surrounding area is okay. It's not that close really to Blaha Lujza ter, which is not a nice
place to be yet. However, the city is trying to re-develop this square and also, a new
luxury hotel (New York Palota) just opened right beside it.
The Madach ter area near Deak ter is an extremely central location with lots of
businesses close and should be rentable. It became a lot prettier lately than it was
before.
District VIII (8) - I wouldn't really recommend investing in most of 8 although there are
fairly good parts. But the worst parts of central Pest are also located here and sold to
unaware foreigners (areas in or around Alfoldi Street, Kun Street beside Erkel Szinhaz
Theatre, Fiumei ut, Rakoczi ter, Orczi ter).
It would be more difficult to rent out apartments here than in the other districts of central
Pest. Despite being quite close to the centre, district 8 is not a desirable area. People
believe crime is higher here and it was traditionally the centre of prostitution in the city.
You don't actually experience that much of it any longer, but if you were to ask any
Hungarian where the worst part of the center was, 90% would agree with me. Many of
the new buildings in this area also seem to be aimed at foreigners, who may not be
aware of local opinions.
Closer to Kalvin ter is a lot better, such as part of Baross utca, but even still, there is
nothing so amazing about that area either.
District IX (9) - Trendy bars and cafés are springing up on Raday utca and in the
section bounded by the Nagykorut, attracing many university students.
Refurbished older parts close to the Korut, such as Raday utca, are good, but new
builds further out tend to be ugly and overpriced. The government spent a lot to improve
the area but be careful to spend your money on a new apartment here. You will very
probably have problems renting it out, and when it comes time to sell, you may also run
into difficulty. For the price of a poor quality new apartment here, you can get a second
hand apartment in district 6, beside the Opera and just off Andrassy ut, right in the
center of town.
If you have made up your mind to buy a new apartment anyway, the part of district 9
close to the Danube is likely to be a good investment. The new National Theatre is
located close by as well as more centrally located Raday utca, which is one of the best
streets over here for restaurants and bars. Some of the popular Summer bars are also
within walking distance. Gizella Park development is on a busy street, so be careful
which apartment you go for if you do decide to invest here as noise could be an issue.
Tenants will probably prefer apartments with overlooking inner garden. The design
looks fairly good compared to other new builds in the city.
District XIII (13) - A well to do location with some history and many antique shops,
directly serviced by a metro line. Its best location is Szent Istvan Park and Újpesti
Rakpart between Szent Istvan Park and Margit híd (Margarete bridge).
What to buy as an investment
There is a definite demand for good quality but not luxury, inexpensive, 4-5 bedroom
family homes in the Diosd area (Buda side suburb).
There is a moderate demand for medium to large size high quality and luxury
apartments in the central Buda (1, 2, 11, 12) and Pest (5, 6, 13) districts at the minute.
If you furnish your apartments to a high standard and don't overcharge, you would be
able to rent them out fairly easily.
For newly builts, however, capital appreciation may not be so high as these apartments
are already pitched around 40% higher than local second hand properties. More >>>
Outside Budapest
Consider the Balaton region. Balaton, the "Hungarian sea", is the largest lake in
Europe, and benefits from having a pleasant micro-climate that makes it a major tourist
destination not only for Hungarians, but particularly for Austrians, Germans and Italians.
RyanAir now flies direct from Stansted, so it is likely that more British are going to be
heading to the Balaton resorts over time. Property prices are still pretty low, since flocks
of investors have not yet discovered the region, and there is not a lot of development
happening, but the prospects for growth look very positive. Balaton could be worth a
look if you are looking to buy in a holiday destination and the seaside is not for you.
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