When Hungary and the Czech Republic joined the European Union
back in 2004 they set the standards for economic achievement
that the rest of the new entrants could only dream of achieving.
Both Hungary and the Czech Republic not only embraced their new
membership status, they went out of their way to create an
environment so conducive for inward investment that both
countries are now thriving.
As has been well documented, the stunning Czech Republic city of
Prague became of such intense interest to international real
estate investors even before the Republic joined the EU because
it boasts almost inimitable charm, attraction and opportunity. I
say 'almost' inimitable because Hungary's capital city of
Budapest is equally well endowed with stunning ancient
architecture, cultural attraction and a unique and timeless
appeal.
As a direct result Budapest is suddenly becoming one of the
hottest European cities for tourism and the business environment
is so buoyant right now that the numbers of expatriates heading
to the city for work is at an all time high. These factors mean
that the demand for real estate to rent is outstripping the
current supply of well located and appointed property and prices
in Budapest are starting to soar.
Where once Prague was the European capital city attracting the
most overseas real estate investor interest, Budapest is now
surpassing the investor levels Prague has enjoyed. And one of
the real reasons for this is the fact that property prices in
Budapest are up to 25% less than those in Prague, and the past
couple of years have seen price gains in the most desirable
districts of Budapest reach 15% annually.
The opportunity to profit to the max is huge currently, but at
the same time the window of opportunity is likely to be narrow
for those wishing to buy into the projected period of rapid
growth. Those real estate investors who are buying right now
have the strongest chance of realizing the greatest gains. Over
the medium term the demand for property in Budapest will not
slacken but the property price margin increases will slow down
as prices reach parity with the Czech Republic.
After this period of time it is likely that prices will continue
to rise in line with local affordability and that potential
rental income will still be impressive. This will continue to
bring investors to the market place which means an investor can
purchase in Budapest with confidence that he will be able to
resell his real estate assets when the time is right for him to
release the gains he has accrued.
If you compare the potential fortunes of Budapest with Prague
you will see just how much room there is in the market for
growth and return, and how far demand can actually go for
property for sale and rent in this stunningly beautiful
Hungarian city.
About the author:
Rhiannon Williamson writes about real estate investment in
emerging markets worldwide. To read more about
property investment in Hungary
click here.
