A guide to real estate in BudapestBuda and Pest, two cities which became one and yet still preserve their individual characters. And both Buda and Pest have experienced great development since 1989, including in the real estate market.
The first, second and twelfth districts of Buda have the greatest amount of development, while in Pest it is in the fifth, sixth and ninth. But the border between developing and nondeveloping is becoming blurred. Towns and villages around the city are also seeing an upswing in investment and expat immigration.
Reasons to invest in Hungarian real estateHungary is developing rapidly, despite the delay to some infrastructure projects caused by Maastrich treaty austerity measures. While from the outside some Hungarian domestic political issues may seem to discourage investment, the mood in the business world is investment-friendly. While many Hungarians may lack funds for property investment, and some banks are reluctant to grant them credit, this means foreign investors have more investment opportunities, both in new developments and already-existing properties, either for their own use or as buy-to-rent investments.
It is estimated that €26.35 billion in EU funding will come to GHungary int he next six years. As a rough guide, for every €1 of EU funding, another €1 comes from the private sector. Economists believe that this could amount to a foreign direct investment boost of up to €70 billion. This will have a tremendous impact on the Hungarian economy and investment prospects in Hungary especially in Budapest.
Since the end of the communist era in 1989, the Hungarian economy has performed well. As a new EU member, Hungary is making structural reforms to its economy, and these should benefit investors, as the economy makes ready to join the Euro zone.
Bank loan concultancy