Love for life and peace of mind - the two striking features that combine in Hungary. This hospitable country successfully combines not only European character with national characteristics, but also the historical past with the present. After walking only once on the streets, squares and parks of any Hungarian town, you'll want to stay here for a long time! Hungarians are not only proud to keep their traditions and culture, they are also closely watching for the new trends of various spheres of life. Because very often you can find successful combinations of architectural ensembles constructed in two, at first glance, incompatible styles - Baroque and high-tech.
But Hungary is impressive not only for its spectacular views. Once the country was back on its feet economically and opened to foreign direct investment, it happened around 1998, the country implemented effective tax system, coordinated plans for industrial development and modernization of production facilities. All this had a positive impact on the development of the country: today the market reforms in Hungary are complete.
The climate is mild in Hungary. Winter, spring and autumn are short. But the summer season is hot and in many ways similar to the climate of the southern regions of Russia.
According to data provided by Eurostat, the cost of living is much lower in Hungary than in Bulgaria, Montenegro and Serbia. You can save a lot not only on transport, utilities and food, but also on the acquisition of real estate. However, this does not mean that the standard of living is low. To verify this, it suffices to give just one fact: Budapest took the second place among the cities of Eastern Europe in the rating of quality of life, which was constructed by Mercer Quality of Living in 2011.
What is offered on the local real estate market?
To date, the real estate market in Hungary is mostly stable. A lot of foreigners in the early 2000s bought property in this country for the purpose of investment in material resources. It was expected that after May 2004, Hungary would join the European Union, the prices of apartments would rise significantly, but a sharp rise happened after the event. Moreover, after the crisis prices fell again by about 15-20%.
Since 2011 there was a gradual influx of investors in the real estate market in Hungary. Despite the fact that the banks have created favorable conditions for all kinds of loans, the attempts to achieve such a large number of transactions, as in the beginning of the decade, have failed.
As of January 2013 property prices in Hungary rose slightly in Budapest, but the rest of the country witnessed a dramatic collapse. In some areas it became possible to purchase a square meter for €341. A logical consequence of this situation can be regarded as a sharp jump in sales figures: in 2011 only 87,700 objects were sold, the figures for 2012 have increased by 7.5% to 94,302. Given the fact that the volume of construction fell sharply, the apartments in houses built during the communist era enjoy the great rise in popularity.
But despite all this, there are proposals that provide a great deal of interest for a wide range of buyers in Hungary. As already mentioned, the property prices in Budapest are comparatively lower than in other European capitals. If a quality apartment in a major city of Hungary can be bought in the range of €600 to €1,100 per sq.m., in Vienna, located a couple of hours drive from Budapest, the cost of housing will be three times higher.
Cost per square meter of prime property located, for example, on Andrassy Boulevard, ranges from €2,500 to €4,000. Its basically bought by the wealthy investors from Britain, Ireland or Israel. But even people with average income can easily afford to buy a spacious and bright apartment with the help of mortgage. Loans to foreign nationals are issued for any period up to 20 years at an average rate of 10-12% per annum. It is sufficient to provide an identity document, a preliminary sales agreement and an income statement for processing the transaction.
In resort towns on the coast of Lake Balaton, famous for its mineral and thermal springs, housing costs much higher. The apartment of 40 square meters will cost around €70,000. But despite the price, the demand for property here remains at a high level, because it's the resort area!
High-end housing market in Hungary is underdeveloped, but it is possible to buy a mansion, or even the castle in Budapest or on the coast of Lake Balaton. While in the first case the cost of this type of housing is on average €2,300 per sq.m., the lakeside facilities are usually sold for millions. One notable example is the six-room house, located 8 km from Siófok. The property has not only a rich interior, but also a spacious terrace, two swimming pools (internal and external), as well as an area of 5 hectares. The castles are more expensive.
As for the maintainig of the real estate, it is worth nothing, cause in Hungary there is no tax on the ownership of real estate, but those who rent housing, must pay from 20% to 40% of the proceeds to the treasury. Tariffs on utility services "do not bite ": for example, the maintaining of a standard two-bedroom apartment in Budapest costs €70-80 per month in summer, €100-120 - in the winter.
There is a brisk demand for rental property in Budapest. Foreign students and working professionals come to the city in big amounts, so the need for temporary housing gets more and more acute. On average, a decent one-bedroom apartment in Hungary can be rented for €35-40 per day. Of course, the price much depends on the class of housing, as well as on its distance from the center.
In conclusion, I would like to say about the prospects. Over the past three years the construction of the new housing in the country decreased in about four times . The situation was ambiguous: on the one hand housing price fell in Budapest, but remained at the same level in the resort towns. Experts do not give any accurate predictions for the future, but argue that the lull will last until 201 , after which prices will begin to rise slowly but surely.
Text: Anatoly Fedichkin, especially for ee24.com