Regional characteristics are very important to understand for a
successful greenfield investment. The north-east of Hungary has
the
lowest cost of operations in the country. For an
average of 40 working hours per week, blue-collar workers earn
an average of
EUR 370, while white-collar workers make an
average of
EUR 700 per month (both are gross salaries).
Foreign investors are very often asking about the price of land
in Hungary available for industrial activities. Basically, the
further you go to the east from Budapest, the lower prices you
will get. The purchase price of
industrial land is
between
EUR 14/sq.m. - EUR 18/sq.m. The rental fee of an
existing industrial building is more or less the same in this
region as the capital city.
Let me mention some indicative prices for
public
utilities in East Hungary. Electricity costs EUR
4-5/kWh/month, industrial water costs EUR 1/m3, drinking water
costs EUR 0.7/m3, sewage costs EUR 2-3/m3, gas costs EUR
5-6/MJ/h. If you do greenfield investment, you will need to
cover the one-time utility development fee as well, based on the
required capacity.
East Hungary has the reputation of
low wages, flexible and
skilled workers. Recruitment of workers is easy, many are
temporarily unemployed, many are commuters. Unemployment rate in
the eastern region is usually higher than the national average.
The M3 motorway means excellent accessibility and logistical
position as well as proximity of Budapest. Investors are offered
full exemption from all local taxes for 3 or 5 years, depending
on the municipality.
About the author:
Csaba Hegedus is running
AskCsaba.com, a business
consulting firm focusing to provide a wide range of local
information for foreign investors coming to Hungary.
