Published on 21 September 2005 at 04:21 pm
Filed under: Europe:- Hungary Property Guides » Hungary for Property Buyers
Even before Hungary joined the EU back in 2004, international property buyers were increasingly attracted to the wealth of affordable, beautiful and historic real estate available in Hungary - particularly in the capital city of Budapest and on Balaton which is Europe’s largest lake (pictured).
EU membership has seen the entire market economy in Hungary go from strength to strength - and with the Hungarian government committed to long term fiscal development and the encouragement of increased foreign direct investment, the property sector is one area of the Hungarian economy on course for significant growth.
As part of the Austro-Hungarian Empire and then later falling under communist domination following World War II, Hungary has had a rather chequered and beleaguered past. And yet long before the country managed to free itself from communism it was struggling to liberalise its economy and create greater opportunity for growth and development.
Beginning under the leadership of Janos Kadar back in 1968, the Hungarian people gradually altered their outlook and began to adopt the concept of Western style economic and political change - so when it finally came about in 1990 they were ready for it and embraced it. 1990 was the year in which Hungary was finally able to hold democratic elections and since then the country has been firmly established as a politically stable parliamentary democratic country and its GDP has grown substantially.
While unemployment in some areas of the country remains a pressing issue for the Hungarian Government, there are a growing number of middle class, wealthy Hungarians emerging who have increased purchasing power and who are demanding Western quality residential property for sale and for rent and who are therefore underpinning the growth of Hungary’s property market countrywide. This domestic demand for property is already forming the foundations for a strong long term real estate investment market for overseas buyers and developers.
When Hungary acceded to the European Union in 2004 its economy was already one of the strongest Central European transitional economies. Since 2004 the economy has further flourished particularly as a result of substantial inward foreign direct investment.
Because foreign ownership of companies in Hungary is very common, there is a general feeling of great confidence in the country from many nations worldwide. In practical terms the worldwide confidence has translated into foreign investments being made into many business sectors in Hungary.
One of the main business sectors enjoying increasing levels of international investor interest, confidence and funds already is the property sector which is also domestically strong as previously stated.
Hungary is one of the most attractive Eastern European countries with visitors and expatriates alike and it offers its citizens and tourists an amazing mix of natural, historical and cultural landscapes. The Hungarian countryside for example is a rolling, unspoilt and rural majesty with mountains, plains, lakes, castles, spas, springs, caves and forests to explore. You also have the capital city of Hungary which is Budapest offering up one of the most beautiful, lively and vibrant city experiences in the whole of Europe…
All of these facts combine to create the fact that Hungary is now the most popular Eastern European country for second homers and it has developed a holiday home and a buy-to-let tourist property market from the ground up. These markets together with the earlier mentioned growing domestic market existed before some of the big name European property developers had even considered marketing and developing Hungary and so the long term positive prognoses from the Hungarian real estate sector is built on some pretty substantial foundations.
Currently international property investor interest is focused heavily on residential and commercial real estate developments in Budapest. These investors are benefiting from affordability of property in comparison to other cities worldwide, an increase in demand for long and short term rental accommodation, a steady increase in underlying property price growth and an increase in domestic demand for property to purchase. Second homers and retirees are expanding the international property buyers’ focus to examine the rest of the country and its inimitable range of attractions, amenities and facilities. Therefore the scope for development and profit in Hungary’s property market is massive.
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