WHY
INVEST IN BUDAPEST REAL ESTATE?
Budapest is the capital city of Hungary
and with a population over 2 million it ranks as the largest
city in the region. Budapest is also rapidly becoming the
financial and administrative capital for Central and Eastern
Europe as an increasing number of large multinationals are
setting up the regional offices in this city. In total,
44% of all multinational companies with active subsidiaries
in the region have chosen Budapest as their headquarters
as compared to 25% in Vienna and 25% in Prague.
In
addition, Hungary has received over 50 billion dollars in
foreign direct investment since the fall of the iron curtain
with a large portion of the money going to Budapest. These
factors all contribute to a strong and bright future for
the city.
As
the former number two city of the Austro-Hungarian Empire,
Budapest is home to wide variety of different architectural
styles yet the similarities to Vienna and Paris are unmistakable.
However, prime real estate in the historic cores of Paris
and Vienna can only be acquired at an extremely high cost
while the price for a similar property in Budapest is still
more then reasonable.
The
city is only now recovering from 44 years of socialism with
it's former grandeur slowly being restored. Although the
city has made much progress and real estate prices have
risen, significant capital gains can still be expected as
properties are still only 70-80% of the EU average. In 2001
alone, residential property prices in certain districts
of the city have increased 86% although there are still
plenty of excellent non renovated properties selling at
a fraction of their true cost.
THE
REAL ESTATE MARKET IN BUDAPEST
Hungarian real estate market mentality
is transitioning from prices being determined purely on
a square meter basis to the system that exists in Western
Europe in which quality and location play more important
factors. Currently, some of the best districts to invest
in city centre are the 6th and 13th districts while outside
of the city core are the 2nd and 12th districts. The 7th
and 8th districts, located in the Heart of the city are
also scheduled to undergo extensive rehabilitation.
The 6th district is centered around Andrassy Ut, the Hungarian
version of the Champs Elysees which ends in Heroes Square.
This district is the location of the Opera House as well
as many of the old mansions now converted to embassies.
The district itself has numerous cafes and green space reminiscent
of the turn of the century coffee house atmosphere.
The 2nd district is home to wealthy upper class of Budapest,
the district in built on the rolling Buda hills with numerous
large mansions. Access to this section by public transportation
is difficult making it a relatively quiet section of the
city to live in.
The 12th district borders the 2nd and has a similar style
and atmosphere. It is home to the prime minister and numerous
Hungarian celebrities. One of the unique characteristics
of this region are the ancient wine cellars now a part of
the World Heritage. This district is ideal for those who
desire a quiet relaxing neighborhood yet still want to remain
in Budapest.
The 13th district by the West End City Center, Budapest's
premier shopping and entertainment complex, is a rapidly
developing section of the city for offices and shopping.
This district has a atmosphere similar to that of New York.
BUDAPEST
Budapest,
the capital city of Hungary. Everything intersects here:
highways and rail lines. As well as being the center of
industry and commerce which break down to opportunities
of wealth and power. Some even call this a "one city"
country since this is of only concern to most and all decisions
are made here regarding the country.
Budapest is located in Central Europe when considering the
newly released communist eastern block countries. It is
actually south of London and Paris (latitude), enjoying
a continental climate with mild winters and moderate summers.
Major highways are well built out all the way to Budapest
from Western Europe providing a good hub to see the surrounding
countries from.
Like Paris, France, the Budapest history also includes some
bloody revolutions - in 1849, 1918 and 1956 that left their
mark on the population. The last one was in 1989 when communism
ended. Fortunately, this one was a peaceful surrender of
the government, to the will of the people. The first time
in over 45 years that this actually mattered to them.
Since 1990 there has been tremendous growth and development
of buildings and parks with a total reconstruction of most
roads and highways to and from the city. Hungarians can
be considered stylish and prideful with a big heart and
eagerness to learn and do better. In short, Budapest is
"worthy" to compare with all western European
capital cities. Comparing architecture sometimes also referred
to as the "twin city" to Vienna, Austria.
When overlooking Budapest from the Royal Palace wall or
the Fisherman's Bastion of "Castle Hill", it's
easy to see why Budapest is sometimes called "The Pearl
of the Danube". Its grand turn of the century buildings
and beautiful bridges are an architectural marvels and grandiose,
especially when the floodlights illuminate them at night
or illuminated by fireworks on August 20, St Stephen's Day.
Since the Communist system ended in 1990, Budapest has also
experienced a new surge of commercial revitalization. New
luxury hotels and new malls, restaurants, pubs and clubs
have all spontaneously appeared. At the same time unfortunately,
the illegal sex industry also has earned Budapest the nickname
of the "Bangkok of Europe".
Many Hungarians are very worried about the erosion of their
thousand-year-old culture by foreign globalization influences,
others perceive a new golden-age for Budapest with large
amounts of foreign investments on a rise in the past decade.
The River Danube serves as a good orientation landmark during
your visit, with Buda on the hilly left side and flat Pest
on the right. You will find sights in Buda, the I district,
consisting of "Castle Hill", Gellért-hegy
that has the prominent Liberty Statue and the Citadella.
Pest is the commercial center or downtown "Belváros"
with highlights such as Vaci Street where all can delight
in window shopping, fine restaurants and casual cafes.
