The second name of Budapest is "Paris of the East". Tourists from all over the world come here to admire the magnificent architecture and to enjoy calm European life. Investors are attracted by fast growth of cost of square meters and the large number of properties for every taste. Here you can find simple apartments in high-rise buildings, townhouses, spacious apartments and luxurious mansions, cottages, villas.
In the residential sector the highest return (6-8%) bring luxury property. The payback period is on average 10-16 years.
The most difficult year for the local real estate market was 2013 — when the prices reached its historical minimum. But next year the number of transactions with "concrete gold" has increased by 20%. In 2014 the authorities issued 4 times more building permits. In the last quarter of last year, sales increased by another 25%. Market experts believe that this year the local market will fully recover.
The Danube flows through the city and divides it into 2 parts. The most quiet and respectable area is Buda, located on the West. In this article we consider the main districts of Buda and compare the current prices for housing there.
1. Tourist area of the Fortress
All the most important sights, starting from the Royal Palace and ending with the House of Hungarian wines are concentrated here. In addition, the flow of tourists in this part of town never wanes thanks to the excellent therapeutic baths.
Buying a historical monument in the district of the Fortress (many of the buildings here have such status), remember that the opportunity to make repairs or to change the plan will be limited. The average cost per square meter is €1,725. Prices for small apartments start at around €130,000.
2. The second district of Budapest
Luxury properties in this area buy mostly wealthy foreigners. There are many parks, forests, recreation areas, hot springs, Golf clubs, luxury Spa centers, horse riding schools, - in short, everything you need for a measured and "beautiful" life.
The basic housing — apartments in modern complexes and detached houses. The average cost per square meter is slightly lower than in the center — €1,650.
3. Óbuda
Obuda is the oldest district of the city. Today it looks like a combination of various styles and eras — ancient buildings, budget flats, modern houses have found their place in Óbuda. Average price per square meter is €1,200. Apartments here cost €90000- €130,000, the cheapest accommodation can be found in the neighborhood of Bekasmegyer.
4. Ujbuda (district 11)
It is the most populous district of Budapest. Due to the campuses of several big educational institutions in Ujbuda there isalways a lot of young people, and the entertainment industry is very well developed. Previously, there lived the elite of Hungary, today, the district is chosen by many couples who plan to send their offsprings to one of the nearby international schools.
Average price per meter — €1,540, prices for apartments start from €150,000, for houses — from €500,000.
5. Hegyvidek (12 district)
Here, surrounded by rolling countryside, the homes of Hungarian President, Prime Minister and some other prominent politicians are situated. International schools, forests, vineyards, the cable road — are the benefits of the district.
The disadvantages include a poorly developed public transport network. However, this is not a problem for the wealthy local population. Houses are sold for not less than €300,000. The average cost per square meter is €1,850. This is the highest result for the whole Buda.
6. Budafok-Teteny (22 district)
In the 19th century, Budafok-Teteny produced the best wine, and today wine cellars in Budafok-Teteny are extended on hundreds of kilometers. Living in the heart of the "wine" area is quite affordable. Apartments are sold at a price of €40,000, homes — from €150,000. The average cost per square meter is €915.
Taxes
Stamp duty, which is payable at the moment of the transaction, is calculated according to the following scheme: 2% of first €13,200 + 4% of the remaining amount. If you buy the object on the primary market, there are incentives — with the first €49,500 percentage is not taken, must be paid to the state only 4% from the rest of amount.
Registration in the Cadastral office will cost you €198. Annual property tax reaches 3.6% (in different regions there are different rates). Income received from the rental of premises in lease, are taxed at 16%. While resaling the property the old owner pays 25% of the cost, and in the case of inheritance or gift tax rate is 40%.
Text – Alena Eliseeva, ee24
Photocredit Depositphotos.com