Why invest in Hungary – Hungary and Budapest in particular is a great place to invest in today
Safe – Hungary is a parliamentary democracy with a stable political and economic environment. It joined the European Union in 2004 and has been aligning it legal structure to EU norms, the harmonisation is nearly complete. Buying a property is a straight forward and absolutely safe. The Land Registry (fold hivatal,) ensures that each property has a Title Deed and is unique and the legal process ensures that only a single person may own the Title. The legal process for purchasing and selling property in Hungary is transparent and straight forward. Solicitors behave in a similar way to the UK and money is paid through the solicitors client account to ensure that property is exchanged with money in a fair and safe way.
High Returns – The Hungarian Real Estate market is still growing and the lack of local retail finance until recently will ensure that this growth continues for the foreseeable future, as the laws of supply and demand dictate. With Budapest being both the political and economic centre of the country together with the migration from a rural economy to a services based one, Budapest Property will continue to appreciate and be highly sought after for the foreseeable future. We foresee continued capital appreciation of 6-10% per annum (in Euro terms) with rental yields in the 5-7% range. These ranges are conservative given recent historical performance. Property prices in central Budapest are typically in the €1,000 to €1.500 per sqm whilst costs of modernisation and renovation are typically in the €300-€400 per sqm. High occupancy is achieved in smaller apartments (40-70 sqm) due to the thriving student and especially foreign student market. Whilst larger apartments (80-120 sqm) tend to be for young professionals saving to buy their own property.
Access to Finance – Historically retail finance for home loans have not been available in Hungary, but a change in regulation together with the entrance of foreign banks such as Commerzbank, Citibank , Erste Bank and KBC (from Belgium) has ensured that a wide selection of mortgage products are available for both the “live-in” and “buy-to-let” markets. Mortgage products are available in Hungarian Forint, Swiss Franc and Euro currencies. In addition, many finance companies in the UK, Ireland and mainland Europe will lend on property in Hungary. Hungary’s economic policy is geared around euro adoption in 2010 so economic stability is a prime focus for the government.
Why buy to live in Hungary – Budapest is a great city to live in
Cheap Living Costs – The cost of living is about half in Budapest compared to the UK or Ireland. The average GDP per capita in Hungary is around €16,000 (about £11,000), with the average property in central Budapest out of reach for the majority of people. Costs for living in Hungary are half that of London or Dublin with a bottle of wine typically €10 in a restaurant, the average meal for 4 would be less than €100 with wine. Electricity and Gas are typically half the price of the UK or Ireland with petrol costing about €1 per litre.
Safe – Central Budapest is a very safe please to live in with a low serious crime rate and personal safety not an issue. Muggings are virtually unknown in the central districts. There is high police visibility all through the year and a specialist tourist police speaking a multitude of languages are also available.
Vibrant Culture – Budapest has many interesting sights and sounds…..opera house, national theatre, museums etc (http://www.budapestinfo.hu/en/general_information). Classical culture and architecture and also its very modern many top pop stars regularly come to Budapest: Stones, Shakira, Bryan Adams. Budapest is the top European destination for some of the world’s top stars. Andrassy ut being world heritage (needs more work) As one of Europe's truly great capital cities, first time visitors are usually overwhelmed by the sheer beauty of the city. Divided in two by the Danube, the numerous vantage points from hilly Buda and Óbuda offer spectacular views of a flat, busy, sprawling Pest on the river's eastern bank (pictured above left: Heroes' Square).
A city that manages to surprise and enthral in equal measure, reminders of Budapest's rich and often tragic history are ever present. Indeed, the scars of the nation's crushed 1956 uprising (which have yet to fade from the nation's psyche) are still evident from the many bullet hole ridden buildings around the city. Of course, one hopes that now, following Hungary's accession to the EU on 1 May 2004, its younger citizens can take advantage of the opportunity and stability that lie ahead in a united Europe.
Certainly, since the move to parliamentary democracy in 1990, Budapest has witnessed rapid change. Sizeable investment from the west, coupled with a greater choice of goods and services means that daily life is now little different to any other major city in Europe. Of course, this leap into a "brave new world" has also brought problems too. A widening gap between rich and poor, rising house prices, organised crime and graffiti arguably being of most concern.
That said, a renewed sense of vibrancy and pride has taken hold, with many of the fine apartment blocks that turned Vienna and Budapest into two of Europe's most beautiful cities (during the early 1900s) now being restored to their former glory.
And, most importantly, the city has retained its unique character, while the locals remain just as polite, stubborn and individualistic …. Can you work on this section please
Cosmopolitan - Budapest has a cosmopolitan city life, with its street cafes and a multitude of restaurants serving not only Hungarian classics but also restaurants from every part of the globe. Many people speak English and one can comfortably work or live in central Budapest in German or English. Whilst the majority of good restaurants are in the V & VI Districts, and are on the increase, the Bohemian areas of the XI district has many exciting new restaurants too. There are a number of other night spots such as clubs and music venues in the central districts, with taxis being available easily (except New Year’s morning)
Climate – Whilst the climate is traditionally central European ie. A four season climate, Cold in winter and Hot in Summer, in recent years the Budapest winter has become much warmer akin to southern England and the summer has extended to 6-7 months. The two main seasons separated by short periods of change in Spring and Autumn.
Healthcare System – As a member of the EU, Hungary has reciprocal agreements with all other EU members, with medical treatment available from English and European speaking medical professionals. Hungarian further education is considered amongst the worlds best and Budapest has excellent facilities for medical and dental care. Due to the price differential with the rest of Europe, Hungary is considered a centre of choice for medical, dental and cosmetic surgery.
Easy Access - Budapest is very easy to get to and get around in. The country is in the middle of Europe and the only major airport is in Budapest (Ferihegy), there are rarely air traffic delays in the region. A number of low cost airlines operate to Ferihegy including Easyjet and SkyEurope, and Wizzair, from Gatwick, Stanstead and Dublin. The national carrier “Malev” is a member of the One World alliance and has competitive rates from Gatwick, Dublin and Heathrow. Ferihegy airport has been recently modernised and is one of the most efficient airports in Europe with “Hold” luggage” often being available by the time you clear customs. “Wheels down” to clearing the customs are with hold luggage rarely takes more that 20 minutesLocal public transportation is cheap and efficient in Budapest with a central “tube” system that is expanding to a forth line as well as modern tram system that is very efficient.
These are just some of the reasons why 10% of properties bought within Budapest are bought by non-Hungarians and why many ex-patriots see Hungary as a viable alternative to Spain as a place to retire to and live-in