Property in Hungary

Hungary joined the European Union back in 2004, since that moment the country has seen a 0.8% increase in GDP growth rate, a 1% increase in the rate of industrial output and has seen foreign direct investment surge as international confidence in Hungary grows. Of the foreign direct investment flowing into Hungary, 70% of the money is targeted on Budapest; furthermore Budapest is where 60% of Hungary's commercial activity takes place.

The Budapest real estate sector offers investors long term rental income generating opportunities as well as medium to long term capital growth potential. And those looking for an emerging market opportunity within an emerging market economy could consider targeting the tourism and second home markets in Hungary for profit and income as well.

Rental rates have been rising in Budapest for the past few years already and as the local population's purchasing power begins to increase as a result of having access to more, better paying jobs, so this increase can continue to be sustainable.

Brand new off plan property developments in Budapest are selling out rapidly upon release. Buyers consist of overseas real estate investors seeking to buy low and flip on completion, property investors buying multiple units to rent out for an income and there is also a strong local demand for property to purchase which gives an investor a strong resale domestic market. This means that the profitability of a property investment made in Budapest can be realized by reselling - there is nothing worse than owning a property that you cannot resell after all!

Hungary has the largest incidence of second home ownership of all Eastern European countries because it is an incredibly beautiful country, an easily accessible country which borders Austria, Slovenia, Croatia, Serbia and Montenegro, Slovakia and Ukraine and a country that enjoys incredibly cheap flights to and from the UK.

Tourism in Hungary is also growing and investment into the tourism sector is encouraged with the Hungarian government offering tax incentives to investors who commit for the long term.

An investor could buy, renovate and resell properties to second home seekers, alternatively a property investor could buy to let to the tourism market or even invest in hotels and tourism amenities and facilities in Hungary for long term income and profits. Quite simply, a property investor looking for an attractive, economically stable country offering a broad range of affordable real estate investment opportunities should consider investing in Hungary.

Why invest in Hungary?

• Economy is growing, so will Budapest property prices
• A very tax-efficient investment
• No capital gains tax on any property owned for 5 years or over
• Extensive finance options for the UK and Irish markets
• Hungary aims to adopt the Euro within 5 years
• Cheap flights from the UK
• Budapest, "Paris of the East"