Budapest Property Prices Offer Value For Savvy Investors
Budapest flats and houses for sale or to rent
Whilst Budapest is known as the 'Paris of the East', comparable high-end properties (flats, houses) in Budapest are actually a fifth or less of the cost of those in Paris, or indeed in London.
Budapest is without doubt one of the world's most stunning cities. Investment and restoration in the city is continuous; its historical treasures are constantly being refurbished and renewed, whilst new world-class buildings are springing up each year.
There are many good reasons why to invest in real estate (houses, flats) in Budapest. Here I list just a few, but I will be back with more in my next article.
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The Hungarian government is committed to massive infrastructure projects throughout Budapest and Hungary - a new fourth Metro line is currently being constructed, as are three new bridges over the Danube and a new government quarter on a 30-hectare (roughly the size of 72 football pitches) site in central Budapest. Investment is piling into this great city, and specifically into new public and private construction projects, at an unprecedented rate.
In addition to the huge amounts currently being invested into Budapest the EU recently announced in September 2007 that it will invest EUR25 Billion in Hungary over the next 6 years. This massive EU investment will drive Hungary's economic growth and it is expected that the Budapest property market is likely to experience a sharp, short-term boost as a result. Over the long term, even conservative estimates see the local property market rising 15% per annum throughout the next ten years, making Budapest property a low-risk and profitable investment.
For over a decade international Blue Chip companies have made a beeline for Budapest. The city's strategic geographical location makes it the ideal gateway to Southern and Eastern Europe, and multinational companies continue to invest heavily in Budapest, as the city serves as an ideal regional HQ.
Why so? Well it's not difficult to get the expatriates, which are key to the success of a new operation in a foreign country, to move to Budapest. I have lived in Budapest for over six years now and I find that expats simply love to live in Budapest. The locals are very well educated too, and international companies find that operations in Budapest are far more cost effective than where they have come from. The Exxon mobile service centre which moved hundreds of jobs from London to Budapest is a prime example.
A good example of a Budapest property "hot spot" is a large chunk District 13. One of the main reasons why this part of Budapest has grown into and can now be described as a hot spot is the development of Vaci Street as an office corridor. Many class A office buildings have been built and are under construction, and they house many household names of the Blue chip international company variety. Companies such as General Electric, Ernst and Young, KPMG, Diageo, Exxon mobile, and Sab Miller, occupy huge amounts of office space. They are heavily invested in Hungary and employee thousands of well qualified, professional locals in offices situated on this stretch of road. This has a positive impact on the rental market in the areas either side of Vaci Street. Also it has and will continue to stimulate demand for home ownership as Hungarians have a property ownership mentality and will usually buy when they can afford to do so.
Richard Holmes has lived in Budapest in Hungary for over six years. He is Managing Director of a Budapest Real estate agency who specialize in working with foreign investors who seek investment opportunities in the Budapest property market.