Why should the Budapest market appreciate?
• New EU membership.
• Average salaries are rising.
• Development of a mortgage system in Euros and reduction of the Forint Interest rates from a current 11.5 per cent.
• Limited growth in supply of real estate in central districts.
• Increasing foreign demand.
• Low prices compared to other major EU capitals including Central European capitals.
• Appreciation of “off-plan” purchases in new developments.

Following the collapse of communism, the Hungarian state has created the legal and economic environment to meet the requirements of foreign investors. EU accession has further removed barriers to competition and given foreign investors the same legal and financial conditions they are accustomed to in many of their own countries.

Budapest possesses the largest concentration of “aristocratic” architecture in Europe. A large number of city-centre buildings are over 75 years old but due to low rental fees and state ownership, maintenance was neglected and most of these homes are in very poor condition. There are over 800,000 apartments in Budapest and it is estimated that more than 200,000 of these are in need of renovation. Significantly the local municipality has established a programme for renovating buildings in the centre of the city and many are being repaired and renovated by foreign buyers.

By the end of privatisation in the real estate sector, the share of privately owned residential properties has reached 90-92%. This ratio is the highest in Europe and possibly the world.

Large numbers of foreign workers come to Budapest in the banking and finance sectors. There are many embassies and banks located in the heart of our key investment area, district V which means there is a supply of discerning tenants living and working in the area.