| Why Invest in Budapest, Hungary? |
Hungary, and especially its capital city, Budapest is a fantastic place for investment, but
one needs to do serious research prior to investing. In order to be able to get the right
property in the right location at the right price, it is advisable to spend at least a few
weeks in a destination that you're interested in. Relying entirely on sales people, or
guessing which parts are a good investment is extremely risky without local knowledge.
There are fantastic investments in Budapest, but also terrible ones. Many investors just
haven't done much research into the areas they are buying nor have they really thought
about rental possibilities, etc. The city is a long term proposition. Many investors have
become frustrated that they haven't made instant cash. Some may have also jumped in
too impulsively and to the wrong areas.
The economic fundamentals are good (see below), and Budapest will prosper in the
years to come. The country receives a substantial proportion of Direct Foreign
Investment for the region and mortgage rates are likely to drop substantially when
Hungary adopts the Euro in the next five years. This will make property more affordable
for the locals.
Unfortunately, the Irish property media has hyped the city for the last couple of years, as
if there was a window for when to invest. This isn't true and there are still great
opportunities to be had. Some people have bought in the past year are earning 25% on
their return (e.g. holiday let apartments). Others are happy to take the less hassle
option and rent longer term for 5-8%, which is very achievable here with a good
investment.
Budapest offers strong investment opportunities. However you should pick carefully
where you buy and take your time. Even different parts of the same street can have very
different prices. Visit the city a few times and look at as many properties as you can.
Don't buy new unless you have a good reason to do so. Stick to districts V, VI, XI, and
parts of VII and IX unless you have a good reason to do otherwise. For the best
location, ask a local professional, it is toq vague to just go by districts! Rental returns
are around 5-7% but better at the top end of the market. Eight % is considered great.
You should be able to get a 50 sq. m one bed apartment for around € 60,000 or an 80
sq.m two bed apartment for around € 90,000 in good condition, in a good central
district. You should have no problem renting a carefully chosen, good apartment, but
figure out in advance who you want to aim it at. There are a lot of foreign tenants here,
but they want great location and top spec everything. Student market is also strong.
They won't pay top rents but don't need top spec either. Students also look for clean
buildings in clean and safe neighborhoods with decent restaurants, and good public
transportation. As usual, LOCATION IS NUMBER ONE!
one needs to do serious research prior to investing. In order to be able to get the right
property in the right location at the right price, it is advisable to spend at least a few
weeks in a destination that you're interested in. Relying entirely on sales people, or
guessing which parts are a good investment is extremely risky without local knowledge.
There are fantastic investments in Budapest, but also terrible ones. Many investors just
haven't done much research into the areas they are buying nor have they really thought
about rental possibilities, etc. The city is a long term proposition. Many investors have
become frustrated that they haven't made instant cash. Some may have also jumped in
too impulsively and to the wrong areas.
The economic fundamentals are good (see below), and Budapest will prosper in the
years to come. The country receives a substantial proportion of Direct Foreign
Investment for the region and mortgage rates are likely to drop substantially when
Hungary adopts the Euro in the next five years. This will make property more affordable
for the locals.
Unfortunately, the Irish property media has hyped the city for the last couple of years, as
if there was a window for when to invest. This isn't true and there are still great
opportunities to be had. Some people have bought in the past year are earning 25% on
their return (e.g. holiday let apartments). Others are happy to take the less hassle
option and rent longer term for 5-8%, which is very achievable here with a good
investment.
Budapest offers strong investment opportunities. However you should pick carefully
where you buy and take your time. Even different parts of the same street can have very
different prices. Visit the city a few times and look at as many properties as you can.
Don't buy new unless you have a good reason to do so. Stick to districts V, VI, XI, and
parts of VII and IX unless you have a good reason to do otherwise. For the best
location, ask a local professional, it is toq vague to just go by districts! Rental returns
are around 5-7% but better at the top end of the market. Eight % is considered great.
You should be able to get a 50 sq. m one bed apartment for around € 60,000 or an 80
sq.m two bed apartment for around € 90,000 in good condition, in a good central
district. You should have no problem renting a carefully chosen, good apartment, but
figure out in advance who you want to aim it at. There are a lot of foreign tenants here,
but they want great location and top spec everything. Student market is also strong.
They won't pay top rents but don't need top spec either. Students also look for clean
buildings in clean and safe neighborhoods with decent restaurants, and good public
transportation. As usual, LOCATION IS NUMBER ONE!
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| - - - - - - - - - - - - - - - - - - - - - - - - - - Buying or Renting a Home in Hungary - - - - - - - - - - - - - - - - - - - - - - - - - - |
| Hungary, Budapest, property, realtor, home, real estate, investment, market trends, real estate market, prices in Budapest, international property |
| © 2008 Budapest-Propertyfinder.com | About us | Contact us |
Quick Facts
Hungary - Politics
Hungary - Economy
Hungary - Politics
- Democratic government since first elections in 1990
- Prime minister Ferenc Gyurcsany (socialist party)
- First country in CEE to join IMF (1982) and NATO (1999)
- Member of OECD since 1996
Hungary - Economy
- Joined the EU in 2004, will switch is currency to Euro in 2011.
- The Private sector accounts for 80% of the GDP
- GDP growth in 2006 4% (EU average 0.8%)
- GDP rose at an above-average 6.2% rate in the industry, including 6.8%
growth in the manufacturing sector alone, and rose 1.3% in services in
2007. - Ranked as "the 3rd best city to do business in, higher ranking then
London, Paris and Prague" in a study made by DTZ - In 2007, the exports of goods rose 15% from 2006, and the exports of
services rose 9.9%. The import of goods rose 11.6% and the import of
services rose 16.4% last year (KSH). - 2007 GDP totaled Ft 25,374 billion (€95.56 billion) in nominal terms
(KSH). - 2007 GDP per capita was Ft 2.523 million (KSH).
- Source: MTI-Econews
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photo: wikipedia
