Since the fall of the communist regime, the Hungarian real estate market has become a profit-generating sector. Over the past 25 years, international investors have recognised the opportunities and invested in real estate located in Budapest.

Hungary is showing some of the best macro-economic indicators in the region. Investing in real estate remains one of the fastest growing markets, supported by a robust and reliable land/property registry system.

The capital, Budapest, is becoming a favourite target for real estate investors due to the stable and predictable economic environment. But there are a number of additional factors.

Budapest is one of the biggest and most important cities in Central Europe; often referred to as “The Paris of Eastern Europe” or “The Most Western Capital of the East”. Hungary has outstanding reserves of both clear and thermal water. Its moderate climate and landscape are free from extremes.

The city’s busy cultural life, the architecture and the thermal spas attract millions of visitors every year. Many international students attend its dozens of universities. And last but not least, its geographical location and high-level infrastructure makes Budapest a favourite location for business process outsourcing and shared service centre companies, IT and communication companies and other multinationals.

For these reasons, both the short and long-term rental markets are booming in the city. It is also worth considering that despite a 20% increase in real estate prices in Budapest in the last few years, it has still not reached the level of other capital cities in the region. According to forecasts another 35% increase may be expected in the coming years.

Additional advantages include a positive tax environment (for example selling a property after 5 years, the generated profit is tax free), and bilateral agreements with other countries (such as France) can provide further benefits.

Local knowledge is critical. It can make a huge different in deciding where to buy a property, in which district or even on which street. Sometimes the side of the street matters. With strong state control, a good relationship with local authorities is important, as well as understanding the technicalities and procedures.

In order to avoid any unpleasant surprises, we strongly recommend you choose a real estate agency with good local knowledge, exceptional connections and which can offer excellent services, whilst maintaining international business and legal standards.

We are proud to present NESTRA. A French owned business with Hungarian management. We are a young and committed company offering:

• flexible, tailor-made administration
• professional advisory services
• highly experienced and knowledgeable real estate team
• legal, accounting, and tax advice
• management support from parent company, Airmont

If you are considering investing in real estate in Budapest, come and talk to us.

(For more market information visit this link: https://www.globalpropertyguide.com/Europe/Hungary)