Why invest in Budapest?

• Prices from €43,000
• Rental guarantees available
• No Capital Gain Tax for properties owned for over 5 years.
• In September in 2007 the Global Political Risk Index placed Budapest as “The Most Stable Emerging Market in the World.”
• Budapest is a flourishing city that contributes to over 40% of Hungary’s GDP
• Budapest is enjoying a comparatively low investment base during what has been dubbed its “Property catch-up” phase.
• Massive infrastructure investment, attracting more rental tenants to relocate to Budapest.
• Hungary has been awarded €25 billion in EU funding.
• This EU funding is historically matched like for like by additional Private Investment.

Emerging markets yearn to be boring, at least politically. The Global Political Risk Index, which is produced by Eurasia Group, a global political risk advisory and consultancy firm rates Hungary the most stable country in a 24-strong field.

Unlike the other areas in Europe, the city of Budapest is in a completely landlocked country and is not a traditional holiday destination. The reason Citiesinvest.com recommends the Budapest property market is due in part to the fantastic potential for capital growth. Of the ten new entrants to the European Union in 2004 Hungary’s economy has proved the most dynamic and it also has one of the highest per capita GDP’s. Many commentators and analysts have compared the Budapest property market to that of Ireland’s (and in particular that of Dublin) during the first few years of the 1990’s. Early bird investors have so far made a killing with Hungarian property in Budapest, but with all the economic indicators looking good, there is still a lot of growth to come.

Between 2003-05 the economy has seen a positive growth rate of 15-20% and in the Budapest property market, rental incomes have provided minimum yields of 7% rising to around 10%. There are a number of solid reasons and indicators to suggest that Hungary’s economy should continue to grow at current rates. Although between 1999 and 2003 Budapest property prices increased by 60 percent, property investors can feel secure that there is still much more to gain from buying Hungarian property here. The European Union has invested significantly in Hungary since May 2004 and this inward investment is set to continue. One important factor contributing to Hungary’s continued economic success is the drive towards adoption of the Euro set for 2012. Government policy should remain sensible and stable in coming years as this target of further European integration is aimed for.

As an ancient European capital city it has many of the charms and cosmopolitan nature of other major European cities, which coupled with the dynamism of the economy in the decade and a half since communism makes the still very low property prices extremely attractive for investors looking for a development in a European capital of culture.

Geography

Budapest lies in central Hungary. The Danubeenters the city from the north; later it encircles two islands, Óbuda Island and Margaret Island. The river that separates the two parts of the city is only 230 m (755 ft) wide at its narrowest point in Budapest. Pest lies on the flat terrain of the Great Plain while Buda is rather hilly.  

THE CURRENCY: The Forint (HUF) looking at Euro adoption by 2012.

POPULATION: 1,669,921

AIRPORT: Ferihegy Airport