About Hungary

Geography

Hungary has a temperate climate, with warm summers. Most of the country is a fertile plain around two major rivers – the Danube which flows through Budapest from the north to the south, and the Tisza.

Hungary’s longest borders are with Austria to the west, Slovakia to the north and Romania to the east.

Political

The population of Hungary is approximately 10 million, of whom approximately 2 million live in Budapest. Hungary is a parliamentary democracy, with a constitution dating back to 1949.

Economic

Hungary is experiencing strong economic growth in the run-up to entry to the European Union. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Inflation and unemployment - both priority concerns in 2001 - have declined substantially during the past 2 years.

Currency

The unit of currency is Hungarian Forint (HUF). In Hungary the abbreviation of Forint is Ft.
Coins: 1, 2, 5, 10, 20, 50, 100 HUF.
Bank notes: 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000 HUF.
1 € = approx. 247.269(March 2007).

Capital Growth in Hungry Property

Real estate surveys from last year indicate the following prices (per sq.ft.) for residential apartments in the major European cities:

  • Paris $736
  • Amsterdam $497
  • Madrid $475
  • Milan $453
  • London $429
  • Dublin $397
  • Budapest $183

Furthermore in less central neighbourhoods, it is not uncommon to find quality properties for less than $100 / sq.ft. Typical apartment size is 800 sq. ft., with some in the 1,500-1,700 sq. ft. range.

It's clear -- Budapest real estate prices are significantly below levels for European capital cities. And after entry to the European Union in May, Budapest prices should continue their climb toward European norms.

Budapest is one of the cheapest cities in Europe, according to a study compiled by the Economist Intelligence Unit (EIU.com) about the cheapest and most expensive cities of the world and, based on prices calculated in US dollars. The cheapest city of the euro-zone is Lisbon, while Europe's cheapest cities are Bucharest and Budapest, standing in 133rd and 125th places, respectively.

As Hungary is on the way to join the European Union (EU), real estate prices are skyrocketing. If you bought any type of real estate in Hungary in the past few years, now it has at least double or triple market value. And this is not the end of the story.

In Budapest, you can purchase

  • flats, apartments
  • family houses, promoted villas in the Buda hills
  • land for residential and commercial investments

We strongly encourage you to visit Budapest to see the opportunities, to talk to people, and to get to know the environment

Property Price Increases

Entry Into The Economic And Monetary Union (EMU)
The Maastricht Treaty establishing the European Union requires EU members to satisfy a number of criteria before joining the EMU. With the start of EMU the currencies of participants will be irrevocably locked and in time replaced by single currency, the Euro.

These criteria are:

  1. Achieve a high degree of price stability.
  2. Have a sustainable government financial position.
  3. Observe normal fluctuation margins for their exchange rate for a period of at least 2 years without devaluation.
  4. Achieve long term interest rates in line with the country’s participation in the European Monetary System.

The Hungarian Government has stated its desire to join the EMU and is already well advanced in achieving the four criteria outlined above.

Price Trends

During 2002 property prices in Budapest rose by approx 10 to 15% and last year it was around the same.

Comparison With other European Cities

Currently properties are selling in other European cities, such as Dublin, Paris and London for up to 4 times the cost of properties in Budapest. Vienna, less than 3 hours away by train, is currently between 3 to 4 times more expensive than Budapest. As a general guide average apartment prices in Budapest are €1,000 per sq metre.

Budapest - A City Apart

Unlike other European countries, Hungary has only one major city, and that is Budapest, it’s capital. Budapest dominates the Hungarian economy, attracting almost 60% of total foreign investment.

Strong Economic Outlook

Hungary has been the most successful of the former eastern bloc countries in attracting foreign direct investment. Hungary continues to demonstrate strong economic growth, since 1989 direct foreign investment totals more than $23 billion. Inflation and unemployment have both reduced drastically in the recent past. There are some 30,000 firms with foreign capital currently operating in Hungary. This economic picture can only improve with accession to the EU.