You don’t have to be utterly rich to have a pied-à-terre in a city where life is good. Spotlight on Budapest. A destination that is gaining popularity.
Budapest, the Hungarian capital, is in full growth. And it offers a lot of buying opportunities. The historical past of the city is dazzling, while the real estate is undergoing massive renovations. Budapest has many large and beautiful apartments for less than 500,000 euros, in buildings of exceptional architectural quality. They can easily compete with buildings designed by Haussmann.
Real estate is becoming so attractive that the Barnes Global Property Handbook (yearly study of the high-end real estate market) considers Budapest the top new destination: “Like Lisbon, Barcelona and Madrid in their time, Budapest experiences a period of solid growth, coupled with a dynamic economy and a location at the crossroads of Europe“, states the report.
The most wanted neighbourhoods are located in the historical centre of the city near the Danube river. The 5thdistrict, for instance, has many renovated buildings, according to Barnes. Prices have increased by +35% in two years! Investors are eyeing old buildings and apartments in the 6th, 7thand 9thdistricts. Not to mention the Andrassy Avenue, a landmark of luxury brands.
The best opportunities
Currently, more than two million square meters of residential real estate in Budapest is being built or renovated. The majority of the popular real estate are apartments between 100 and 200m2 that have already been done up. “Budapest is the Lisbon of three-four years ago,” says Thibault de Saint Vincent, president of Barnes. An apartment that needs to be renovated costs between 2,000 and 2,500 euros per square metre, whereas an entirely renovated one with exceptional facilities and of high-quality, is sold at 5,000 – 6,000 euros per square metre. The advantage of these investments? Their return is higher than of Western European investments, around 6%.
The residential park attracts 30% of foreign clients from America, France, the Middle East, Austria and Germany. For 1 million euros, you can buy a large renovated apartment of 200 m2on St Stephen’s square, with a view on the basilica. For 500,000 euros, you get a 5-room apartment of 130 m2with parking in the 5thdistrict, one of the most prominent in the city.