Budapest

Hungary

Hungary’s capital is one of the most popular city break destinations in Europe and offers some of the best property returns.

Great food, a strong economy and a growing tourism industry make Budapest one of the best places to invest in Europe. This beautiful city has been showing some of the most robust 12 months returns in Europe of late. Foreign investors have been moving into Hungary from all over the world, attracted by a welcoming government, rising demand and the prospect of excellent returns.

With stunning buildings, a strong cultural identity and a thriving arts scene, it’s easy to see why Budapest is dubbed the Paris of the East.

Straddling the banks of the Danube, Budapest is one of Europe’s gems. Beautiful architecture contrasted against the striking backdrop of the Buda Hills has helped to turn this into one of the most popular cities in Europe. People come here from all over the world for the food, the nightlife, the spars and the culture. A visit to the ballet or an afternoon spent visiting the city’s numerous galleries highlights just house vibrant and diverse the mix of arts in the city are.

With the government offering support for foreign investors, this is fast becoming one of the hottest tickets for property investors.

Hungary sits at the heart of Europe. Since it joined the EU, the economy has boomed, driven by its cultural, spiritual and economic centre Budapest. It’s the sixth largest city in the EU and deserves its reputation as the ‘Paris of Central Europe’.

Tourism is booming. The summer of 2019 saw record numbers of visitors. 2.5 million guests spent more than six million nights during the first part of the year. Occupancy rates hit 80% in hotels, rising to 88% in Spa hotels. People came from all over the world, with Germany and Russia increasing particularly strongly.

People came both for regular city breaks as well as the many events taking place across the city. The Maccabi European Games saw an influx of visitors from Israel, while the Sziget festival is rapidly earning itself a reputation as one of the best music festivals in Europe.

During winter months, tourists also flock to the famous Christmas market and the piping hot spas fuelled by warm natural springs. These waters were what drew the first settlers to Budapest, and they are central to the city’s appeal today. They mean that regardless of the time of year, Budapest sees a regular flow of visitors.

The city itself is split into two halves, neatly dissected by the Danube. The greener quieter Buda offers a more pleasant, and easy-going way of life. Meanwhile, the bustling Pest offers more commercial appeal. Where you decide to base your property purchases will depend on what you’re looking to achieve.

As with everywhere else in Europe, Hungary’s economy suffered during the pandemic. However, the underlying data is strong. Before the crisis, its economy was growing rapidly, and it looks set for a healthy recovery. According to some of the most recent data, the economy began to recover in Q3. Analysts predict a 4.6% growth in 2021 as a vaccine becomes more widely available. Growth is expected to continue at a healthy 3.8% through 2022.

The future looks positive. However, property prices are still relatively affordable compared to other top European destinations. Prices had risen rapidly in recent years but had shown signs of levelling off in 2019 before the pandemic pushed prices down even further.

Therefore, entry into the market is relatively low and, with the economy moving into the recovery phase in 2021, property may be relatively undervalued. Bargains may be available for those investors who can move quickly.

The cost of living is also relatively low compared to other major capitals. This makes it an attractive destination for many foreigners who come here to live or retire. Budapest represents an opportunity for a more affordable but high-quality lifestyle for those living in more expensive cities around Europe.