Location, location, location

Within Budapest the property price often reflects the district location rather than the quality of the property.

 

 

 

 

 

 

The hills of Buda have traditionally been the favourite neighbourhood of the well-to-do. The best places have a beautiful view of the city or the woods, and very often have a garden that already looks like a park - just ten minutes drive from the city centre.

 

However this area is usually fully priced and there is a limited room for growth.

   

 

 

Undoubtedly District 5 is historically the most expensive area of Budapest. The buildings are similar in design to those in the inner Districts 6, 7 and 8, however price per square metre here can easily be 20-30% higher than in neighbouring districts.

 

The result is that prices are now too high for the vast majority of Hungarians.

 

What led to an influx of non-Hungarian buyers is presumably the district's centrality, exclusivity, richness of monumental attractions, closeness of the Danube and the relatively good condition of many of the blocks, all for a bargain compared to prices at home.

 

 

 

Truly downtown area with a lot of potentials. Grand Boulevards with fine restaurants, cafes, shops, theatres, and side streets with traditional residential areas. The new developments and rehabilitation projects here mix the old with new and defining a new urban quality of life.

 

Property prices vary quite significantly within the district. The inner parts of these districts are the most expensive downtown areas after District 5 and riverside locations but still provide a good growth potential. On the other hand, these apartments can be rented out very easily ensuring constant rental income to the investor.

 

 

 

The new flats being constructed, not just in rehabilitation areas but across the middle of the district, are some of the cheapest new-build in the city. Several developers are offering new flats, not far from the city centre for with 20-40% discount compared to the neighbouring District 9 or less than half price to more prestigious areas.

 

The other factor beside the rehabilitation program which brings a high capital appreciation potential to the District is the realisation of the 4th Metro line which is planned to be up and running by 2010. This metro line will run through District 8 making the area easily accessible from other parts of the city.

 

 

The District has arguably led the way in Budapest's inner-city redevelopment. This explains to an extent why the district has attracted a larger number of foreign property investors last year than any other part of the city.

 

The rise of average price per square meter of residential properties in this district has been the most dynamic in the capital. The property purchase agreements concluded between January 2000 and January 2003 indicate a nominal value increase of 83% for this period. According to the analyses the appreciation experienced earlier will continue at the same pace for the next 4-5 years to come.

 

Average prices per square metre are still at least 30% discount to the same quality apartments in district 6 and 7, however riverside penthouse apartments - like in District 13 - are sold over two times the district average prices.

 

 

This district has shown the most impressive change in the last 15 years. The run down factory sites have been replaced by office buildings and shopping malls and new residential developments are aiming the people doing business here. Its a huge area and there is still a lot of potential for growth.

 

This district is one of the biggest and prices vary very significantly depending on the actual location. Luxurious riverside apartments may be selling over two times the price of good quality new developments a few streets in, and even higher premium over other new developments further from the city centre.