Welcome to BuyAssociation.co.uk

Buying a Property in Hungary

Why buy property in Hungary?

Since the fall of communism, Hungary has blossomed, transforming itself politically and economically. It is now a democratic republic with a strong, stable economy, and a member of the European Union.

Having been part of the Ottoman, Habsburg and Austro-Hungarian Empires, the country has a fascinating and multi-layered cultural legacy of extraordinary richness. This, combined with the availability of low-cost flights from the UK to the capital, Budapest, has led to a boom in tourism and the resulting inevitable emergence of an international property market.

We hope this guide will help you decide whether to research Hungary's property market in more detail. There are many resources to help you, including television and radio programmes, magazines, the internet, property exhibitions, and estate agents in both the UK and Hungary.

The hungarian property market

As the result of a housing boom between 2000 and 2003, when property prices in Budapest increased by up to 60 per cent, early bird investors have done well. However, those who have not already bought need not fear they have missed the boat; Hungary’s economy is stable, houses are still cheap by UK standards, and there is still believed to be great potential for growth.

Naturally, there are huge variations in property prices between different parts of the country. The most expensive areas in Hungary are Budapest and the surrounding regions, and Lake Balaton. Cheaper properties can be found in eastern Hungary, and in small towns and villages.

Budapest’s rental market is year-round. Yields are currently between 7 and 10 per cent.

Popular locations: an overview

Because of Hungary’s communist past, tourism has been slow to develop, and a traditional way of life, virtually unchanged over centuries, is still the norm in rural areas, which, as a result, are largely untouched by the international property market.

However, the capital, Budapest, with its vibrant cultural and social scene, is now popular with tourists, especially for short breaks. A history of wars and invasions has created today’s Budapest, a city that is both cosmopolitan and characteristically Hungarian.

Budapest and the surrounding area are home to more than a quarter of Hungary’s population and the majority of its expatriates. The latter are employed mainly by foreign diplomatic missions and overseas companies. The Lake Balaton area is growing in popularity.

Property in Budapest

Budapest was originally two cities, on either side of the Danube. Buda, the older, has cobbled streets, picturesque colour-washed houses and a mixture of medieval and neo-classical architecture. Pest, larger and busier, is Budapest’s commercial heart. Designer boutiques, fine restaurants and luxury hotels line its broad, leafy boulevards.

Budapest boasts the lowest cost of living of any major European city, a fact that is reflected in property prices. The average cost of a two-bedroom apartment is HUF39,500,400 (approximately £97,300) and that of a three-bedroom house £57,900,600 (about £142,700), but there are wide variations, depending on area. Studio apartments start from HUF 11,700,600 (about £29,000).

Properties in Buda tend to be more expensive than those in Pest. The greatest capital appreciation is currently taking place in Pest.

More pages

Page 1: Why buy property in Hungary?
Page 2: Lake Balaton
Page 3: Money matters
Page 4: And finally …

Holiday home insurance with Staysure - the over 50's experts

Calculate how much you can earn - rent out your holiday home here

www.holidaylettings.co.uk online advertising for home owners abroad

Book now, pay when you stay - 100's of hotel rooms worldwide with laterooms.com