A DYNAMIC, GROWING MARKET
A RICH HISTORY, A CENTRAL LOCATION AND A PROMISING ECONOMY
AFFORDABLE ASSETS AND HIGH-POTENTIAL OPPORTUNITIES FOR A SUCCESSFUL INVESTMENT
Hungary, and more particularly Budapest, is undergoing rapid changes, with a young, qualified and dynamic population that has come to settle on a long-term basis, enjoying the new infrastructure and activity centres. By strategically positioning ourselves at the heart of this new market and by diligently operating the selected assets, we enable our investors to access highly profitable opportunities and benefit from significant appreciation prospects with a high degree of security.
INVESTING AT THE HEART OF EUROPE AND ITS DEVELOPMENT
Here are a few figures regarding Hungary and Budapest
According to Eurostat, Hungarian GDP growth reached 4.8% in 2018, which is higher than in 2017 (4.1%)
Nearly full employment with an unemployment rate of 3.7% (November 2018), a historically low level
Budapest is the capital of Hungary and has a population of 1.8 million people.
The current city of Budapest was created in 1873 when the cities of Buda, Pest and Óbuda, located on both sides of the Danube, merged
Tourism continues to grow, and more than 4 million visitors visited Budapest in 2018
Budapest, "the Pearl" of the Danube", is famous for its ancient history and rich heritage, boosting more than 30 cultural heritage sites. Many of them are also listed as UNESCO World Heritage sites
Co-Founder of Budapest Invest
«Real estate in Budapest is a promising sector, benefiting from significant growth and gaining increased value since 2013. Moreover, the quality assets we select are optimized to offer significant returns to our investors.»
THE ADVANTAGES OF THE HUNGARIAN REAL ESTATE MARKET
A European capital at an affordable price
Property prices in Budapest are among the most affordable of all European capitals. Indeed, they vary on average (depending on the district) from €1,500 to €3,000 per m². Comparatively, Paris with an average price of approx. €10,000 per m², is one of the cities where real estate is the most overvalued, according to the IMF.
High rental yields
The favourable economic context in Hungary as well as the development of tourism, the increase in the number of expatriates and the growing attractiveness of Budapest's universities are increasing the value of the rental property market. All these factors together make it possible to generate yields of approx. 10% gross profitability.
A liquid market
A property sale in Hungary is proceeding rapidly due to a favourable legislative environment. Quality properties, especially rental investment products, rarely stay on the market for more than a few weeks.
A favourable tax environment
Acquisition costs are around 5%. Transfer duty is about 4% and the equivalent of notarial costs, carried out in Hungary by a lawyer, amount to about 1% of the purchase price. In addition, the absence of property and housing tax and the single tax scale of 15% of net rents excluding charges make it possible to benefit from very advantageous taxation.
Limited rental risk
Hungarian legislation is favourable and more so towards owners than tenants, compared to French legislation. In addition, the sectors in which we are strategically positioned, student and short-term rentals, benefit from almost no risk of non-payment.
BUDAPEST, A CITY IN FULL ECONOMIC DEVELOPMENT
A $161.18 billion GDP in 2018
More than 4 million tourists per year
International student exchanges increasing
Capital and investments from Europe and Asia
The analysis of our real estate Expert
« The most promising segment is the one aimed at tourists and foreign students. Returns on investment are the highest, with controlled risk management.»
Tenants coming from university exchanges, expatriation or tourism provide almost no risk of rent default.
Record occupancy rates
The attractiveness of Budapest and its economic dynamism have led to an explosion in the demand for housing, allowing us to offer our investors occupancy rates for student rentals that are close to 100%.
High net returns
The careful selection of properties and the strategic sectors we operate in, as well as Hungary's advantageous tax system, enable us to offer our investors high returns.
Rents on the rise
The rise in demand for quality rental properties makes it possible to increase the cost of rents, thus boosting the profitability of real estate assets.
Considerable valuation of the real estate market
The economic, touristic and cultural attractiveness of Budapest as well as its strategic position in the heart of Europe have set its real estate market on a promising growth path, with a constant average increase of 10% since 2013.