Real Estate in Budapest

Real Estate in Budapest

Thinking of investing on a property in Budapest, Hungary? You probably are wondering about the real estate industry in Hungary particularly in Budapest. Well, in today’s highly competitive world, the real estate in Budapest is continually growing with more and more investors spending their money and time just to find the best properties in the city. Yes, the number of investors favoring Budapest is rapidly growing and this leads to the rise of real estate industry in Budapest.

Reasons for Investing in Budapest

Investors spend much on Budapest properties for several good reasons. One of the most common is the fact that the average amount you may spend on a centrally located property in the city is lower compared to other places. The price just range from €1000 to €1500 per square meter.

It is also noted that in Budapest, Hungary, the percentage of the Value Added Tax (VAT) reduced significantly as of January, 2006. The reduction covers about 5%, from 25% to 20%. This low VAT rate is expected to continue for years to follow.

If a foreigner will spend money for a property in Budapest and handle that purchase as a corporation, a number of tax benefits will be accrued to the purchaser. In this case, the buyer can subtract a great deal of expenditure, which may include deals for insurances, property renovations, mortgage interests, repairs, and even travel expenses. These expenditures may cause rise of the property costs and lower the VAT upon the property sale.

In addition, more and more foreign investors are investing on the real estate in Budapest simply for the reason that the city is a great location for business and commerce. It is strategically situated in Europe, offering access to the one of the continent’s most valuable rivers, the Danube. Also, the city boasts a highly literate and motivated work force, aside from its rich culture and history.

All these reasons trigger corporations and individuals to lay their investments here.

Recent Adjustments of the Real Estate in Budapest

With those above mentioned reasons, the real estate in Budapest currently is facing a number of recent developments. The city and the country have developed from a post-Soviet colony to better financial state. Budapest currently has a better financial condition than the rest of Europe. In fact, Budapest is considered throughout the continent as the fourth most famous investment location for real estate in Europe. It is viewed that by the following years, more and more people will migrate to its locales, then making the real estate in Budapest even brighter.