Founded in 1873, Budapest was formerly the capital of the Austro-Hungarian Empire, and is recognised today as one of Europe’s most beautiful cities.
Its natural position along both banks of the River Danube, its protected architectural wealth, the Buda Hills and their breathtaking views all combine to make this city unique.
Most popular neighbourhoods
Three areas are in high demand:- The historic part of Pest home to hundred-year-old buildings displaying stunning architecture, oft en tastefully renovated with balconies, large rooms and high ceilings, with Andrassy Avenue and Vaci Street at the centre.- Recent apartments in small buildings with gardens and playgrounds nestled in the Buda Hills.- New constructions in “lower” Budapest that meet the latest standards in terms of comfort and which are in high demand as rentals.
Sought-after properties
The most desirable properties are renovated apartments offering between 100 and 200 sq. m. of surface area in the historic neighbourhoods, as well as in the 2nd, 3rd, and 12th districts. Older properties are also popular, made attractive as an investment by relatively inexpensive renovations with returns of around 10%.
Expectations
Client expectations are similar to those in Western Europe. Although Chinese represent the highest proportion of buyers in Hungary, Eastern Europeans are hot on their tail, along with Russians and Ukrainians who appreciate the city’s fine architecture.
Opportunities and outlook
There are more than two million square meters of residential space being built and renovated in Budapest. The property market has doubled since 2014, up from €1,320 to €2,830 per sq. m. Luxury real estate is following the same trend, rising from €5,000 per sq. m. for a fully renovated apartment four years ago to almost €10,000 per sq. m. this year for the same property. Prices are on an upward trend, backed by the growth of numerous international companies that have established themselves in Hungary. Furthermore, the Hungarian tax system is one of the most moderate in Europe: 15% income and capital gains tax, low corporate tax rates and exemption from capital gains tax on property owned for more than five years.
What will 1 million euros buy?
A renovated triplex apartment on an upper floor in the 6th district, offering 386 sq. m. of surface area and a terrace.
Source: Barnes Global Property Handbook 2019
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