Investment Property in Budapest

Invest in Real Estate in Budapest

Investment Property in Budapest
Investment Property in Budapest

Budapest property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Budapest .

Search Map of Budapest Investment Real Estate

Budapest (, US: /ˈbdəpɛst, pɛʃt, ˌbdəˈpɛʃt/; Hungarian pronunciation: [ˈbudɒpɛʃt] (listen)) is the capital and most populous city of Hungary. It is the ninth-largest city in the European Union by population within city limits and the second-largest city on the Danube river; the city has an estimated population of 1,752,286 over a land area of about 525 square kilometres (203 square miles). Budapest, which is both a city and county, forms the centre of the Budapest metropolitan area, which has an area of 7,626 square kilometres (2,944 square miles) and a population of 3,303,786; it is a primate city, constituting 33% of the population of Hungary.

The history of Budapest began when an early Celtic settlement transformed into the Roman town of Aquincum, the capital of Lower Pannonia. The Hungarians arrived in the territory in the late 9th century, but the area was pillaged by the Mongols in 1241–42. Re-established Buda became one of the centres of Renaissance humanist culture by the 15th century. The Battle of Mohács, in 1526, was followed by nearly 150 years of Ottoman rule. After the reconquest of Buda in 1686, the region entered a new age of prosperity, with Pest-Buda becoming a global city after the unification of Buda, Óbuda and Pest on 17 November 1873, with the name ‘Budapest’ given to the new capital. Budapest also became the co-capital of the Austro-Hungarian Empire, a great power that dissolved in 1918, following World War I. The city was the focal point of the Hungarian Revolution of 1848, the Battle of Budapest in 1945, as well as the Hungarian Revolution of 1956.

Budapest is a global city with strengths in commerce, finance, media, art, fashion, research, technology, education, and entertainment. Budapest is the headquarters of the European Institute of Innovation and Technology, the European Police College and the first foreign office of the China Investment Promotion Agency. Over 40 colleges and universities are located in Budapest, including the Eötvös Loránd University, the Corvinus University, Semmelweis University, University of Veterinary Medicine Budapest and the Budapest University of Technology and Economics. Opened in 1896, the city’s subway system, the Budapest Metro, serves 1.27 million, while the Budapest Tram Network serves 1.08 million passengers daily.

The central area of Budapest along the Danube River is classified as a UNESCO World Heritage Site and has several notable monuments of classical architecture, including the Hungarian Parliament and the Buda Castle. The city also has around 80 geothermal springs, the largest thermal water cave system, second largest synagogue, and third largest Parliament building in the world. Budapest attracts around 12 million international tourists per year, making it a highly popular destination in Europe.

The financial stability of Budapest has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Budapest

 

Renting out your Budapest buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Budapest are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Budapest and be prepared to change your initial outlook.
  • Thoroughly research the Budapest location with a special emphasis on fringe areas outside the main Budapest metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Budapest.
  • Ensure that your target investment property in Budapest appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Budapest provides the secure knowledge that your money is working harder than it would in a local Budapest bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Budapest, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Budapest property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Budapest

Flipping property in Budapest

 

Flipping property is when we advise clients to buy a Budapest property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Budapest market has a time to react to the renovation.

 

The Flipping Strategy in Budapest

 

Investment property flipping in Budapest is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Budapest real estate investments are sometimes referred to by professionals as ‘distressed’ Budapest real estate.

 

What is distressed Budapest property:

 

  • Budapest property in need of renovation
  • Budapest real estate with a change of purpose and use
  • Oversold Budapest property
  • Bank repossessions in Budapest

Put simply, long term investors in Budapest purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Budapest investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Budapest property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Budapest use a minimum profit value of 22% when looking at potential Budapest projects.

 

The reason for this is because there are lots that can go wrong in Budapest property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Budapest

 

Property Secured Investments is a Private Equity fund that invests in Budapest and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Budapest

For luxury property investors hoping to add a superb property in Budapest to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Budapest, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Budapest should be entrusted to only the highest-quality agency.

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