Budapest

Investment Guide to the City

The Danube River separates Buda and Pest. Hilly residential Buda to the west and flat commercial Pest to the east. There are 23 districts in Budapest, each being an independent municipality. 30% of the Hungarian population lives in the capital and the significant urban commuter belt all around the city. The Budapest metropolitan area, with a population of 3 million people, is the largest commuter area in Central-Eastern Europe.

The densely-built-in central areas, as we know them now, both in Buda and Pest, were built at the end of the 19th century. Since most of the buildings were left in tact during World War II, there are relatively few new developments in the inner districts. The residential buildings are modeled after the French courtyards, which set the style in the Central European cities of the Austro-Hungarian Monarchy during the late golden age of the Habsburg Empire. The decorative bridges across the Danube, the gentle Buda hills, the city's many parks, world-famous bath houses, large busy boulevards and beautiful tree-lined avenues lend a characteristic atmosphere to the vibrant city. 

Interestingly Budapest is among the least expensive capital cities in Central Eastern Europe, as far as the value of real estate goes. Speculation has not driven the prices up before the global recession of 2008 and supply remains high. Wages are generally low, lower than Bratislava and Prague, for example, resulting in low rentals and relatively low property prices. This is the reason so many experts view the Hungarian capital as a major magnet for capital in the next few years. The city is big, attractive, and still cheap!

Budapest is a dynamically growing metropolis; the municipality has undertaken major infrastructural construction projects, like motorways, bridges, and a new metro line. A significant number of new residential and commercial developments are being completed currently; entire inner-city streets have been pedestrianized, increasing the quality of life and the value of apartments as well as commercial space. 

Examples of 4 new developments in districts 5 and 6, affecting apartment prices and rentals in the center of the city:

District 5

Orco Property Group's classical 10,000m2 shopping and entertainment building in the prestigious Vaci utca - Vorosmarty ter address. Ideal for high street shopping, a fitting home for the top global brands. To be completed in spring 2011, with a large roof terrace for an exquisite meal, reflecting elegance and splendor, boasting all the amenities of a world-class shopping facility as well as red-carpet offices in a splendid location.

Pictured above: Former building of the Budapest Stock Exchange (BUX)

District 5

Central Eastern Europe's leading real estate developer, the Ablon Group, is building a exclusive 5000m2 apartment hotel in Hold utca, right in the middle of the bank district, near the spectacular building of the National Bank. There will be 90 astounding apartments in Hotel Residence with ample underground parking, a swimming pool and fitness center, as well as a posh restaurant.

District 6

District 6

The 5850 m2 Paris Department Store, by Orco, on the famous Andrassy Boulevard was completed in 2009. The developer has enhanced the functionality by adding 5 floors of luxury open space offices, along with preserving the elegant shopping areas and splendid restaurant on the first floor, originally built in 1910.

For more information contact our Hungarian Expert Andras here

Andras Patkai www.ceinvest.hu