Investment Property Market Hungary

Information on Hungary

Hungarian population and politics

Population: 9.8 million

Number of tourists: 15.7 million

Political climate:

Hungary has helped incfrease the collapse of Communism when in 1989 it opened its border with Austria, this then allowed thousands of East Germans to flee to the West. It was also the first Eastern European country to embrace areas of the free market while still under Communist rule, when in 1968 it allowed limited decentralisation of the economy. Economic change has been relatively smooth; within four years nearly 1/2 of the country's economic enterprise had been moved to the private sector, and by ninteen ninty eight Hungary was attracting nearly half of all foreign direct investment in the region. It was admitted to Nato in 1999 and joined the EU in May 2004. Environmental issues and other legacies, like discrimination against the Roma minority, have yet to be resolved, and some corruption, money laundering and organised crime persist.

Hungarian economy

Ownership by a foreign person of and investment in a Hungarian company are widespread, and there is a vast ammount of trade with other EU countries, most notably Germany. Inflation has slowed substantially, from fourteen percent in ninteen ninty eight to 4.7% in two thousand and three; unemployment has persisted around the six percent mark. Budapest drives the Hungarian economy, creating thirty four percent of national GDP and bringing almost sixty percnt of total foreign investment. Companies including Microsoft, IBM, Intel, CocaCola and Guinness
have all moved part of their European operations to Budapest. The government is committed to joining the euro.

Hungarian property market

The biggest market in Hungary has to be new-build and renovated buy-to-let apartments in the capital, Budapest, where district 5, district 6, district 7, district 11 and district 13 are the most sought after addresses. There is some activity around Lake Balaton and Danubian towns like Pecs in the south of the country.

Pros and cons: Budapest is a fantastic option for a buy to let investment; holiday lettings are a possibility but letting to local or expat

professionals offers more reliable returns. Outside the city the international tourist market is in its infancy.

Buying an investment property in Hungary

It is becoming much easier for foreigners to purchase real estate in Hungary. In order to do so as an individual you must apply to the local council for permission, with the assistance of legal advice from a Hungarian solicitor. Permission could be denied, but is usually granted within 3 months and this costs around €250.

For more informarion on the property market in Hungary or to purchase an investment
property in Hungary, please contact us, we would be glad to help and provide you with whatever you need.

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