HUNGARIAN PROPERTY INVESTMENT

WHY BUY INVESTMENT PROPERTY IN HUNGARY

With Hungary’s entry into the EU in May 2004, supported by further liberalisation, its capital Budapest is on its way to becoming one of the biggest economic engines of Eastern Europe. With its architectural beauty and financial growth, it has become an ideal target for investors.

Two million of Hungary’s total population of 10,300,000 live in Budapest, the city known as the ‘pearl of the Danube’. Since the two regions of Buda and Pest were unified in 1873, the resulting city has developed into the cosmopolitan metropolis of today.

A cultural mecca, Budapest offers a staggering 237 monuments, 223 museums and galleries, 35 theatres, 90 cinemas, 2 opera houses and 12 concert halls. The public transport system of underground, trams and buses is among the best in Europe.

Compared with other EU countries, property prices in Hungary are relatively low with the average price of a property in Dublin being more than four times the price of its Hungarian equivalent. Picture Ireland, and in particular Dublin, ten years ago – this is where many economists and property experts believe Budapest to be at present. Hungarian investors have experienced unprecedented growths in their property values in recent years.

Typical levels of appreciation for properties in well-located areas have been seen at 10% up to 15% per annum, and coupled with an average rental yield of 6%-8% for an apartment, Hungary is an exciting investment to add to your portfolio.

EU Membership in May'2004. Any foreigner can buy property in Hungary. 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.

For comparison, real estate surveys for 2004 indicate the following prices (EUR per sq.ft.) for residential apartments in the major European cities: - Paris 736 - Amsterdam 497 - Madrid 475 - Milan 453 - Dublin 397 - Budapest 183 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.

A Stable Democracy

Hungary is a parliamentary democracy, with a constitution dating back to 1949. The legal system has been significantly upgraded in recent years, in preparation for EU membership. Article 7 of the Constitution states that "the legal system of the Republic of Hungary accepts the generally recognized principles of international law".

The Climate

The climate is temperate, 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.

Attractive Loation

It’s located as a central distribution point for European countries 323 Fortune 500 companies have experienced excellent return on investment Hungary has the lowest corporate tax rate in central Europe Attractive government investment incentives exist Productivity in Hungary has risen by an average of 13% every year. The political environment in Hungary is stable and transparent

Hungarian Property

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