Why to invest in Hungary?

A few reasons why both professional and private investors like to invest their money into Hungarian real estate investments:
 

  • A remarkably high, up to 30% per annum return on investment
  • Stable market economy but still an over-average growing potential
  • Stable and investor friendly legal framework
  • Great variety of tax structures to meet maximum profit on investment
  • The downtown area of Budapest is currently being rediscovered under local population making the renting probability of investment purpose real estate acquisitions higher than ever
  • Due to European Union and local government funds the monumental areas of Budapest are under continuous renovation and the infrastructure is under ongoing modernisation and capacity extension
  • Hungary and Budapest is strategically located in the heart of Eastern and Central Europe and operating as a commercial crossroad between East and West, with one of Europe's most important waterways, the Danube, cutting through the country.
  • With a rich and more than 1100 hundred year old history and culture, Hungary has a highly educated and motivated work force and this is one of the most important reasons why major corporations choose Budapest as their regional center.
  • Budapest property prices are approximately 25% lower than those of Prague and Warsaw, and 5-6 times cheaper than prices in major western European countries.
  • For private investors the Hungarian State offers a very tax-efficient tax scheme for real estate investments: From 1 January 2008, individual property investors pay no capital gains tax in Hungary on any residential property they own for 5 years or more.
  • In September 2007, the EU approved a total funding of €25 billion to be invested in Hungary by 2013 to accelerate economic growth in the country. The effect of this huge funding influx has already made a big difference to the Budapest property market.
  • Hungary aims to adopt the Euro within the next few years. This will mean lower interest rates, cheaper mortgages, more inward EU investment in the city and consequently, prices will experience a boom.
  • Comparison of the average new flat prices in EUR / square metre (www.portfolio.hu October, 2007)
    1500-2000 EUR Budapest
    4000-6000 EUR Prague
    3000-4000 EUR Bucharest
    2000-2500 EUR Bratislava