Property in Hungary

1. Local knowledge: Critical to the overseas investor is a partner who understands the dynamics of the market. Our partners are based in Hungaryt, and their staff are hand-picked for their local knowledge and professional approach. Naturally, all agents are fluent in english.
2. Legal services: Our partners work with one Hungary's premier law firms, with extensive experience in both Hungarian and European legislation.

Below are the key reasons why we believe buying property in Hungary is worth serious consideration:

1. Property appreciation averages 16% with rental yields in Budapest averaging 6%
2. Any foreigner can buy real estate in Hungary. Capital gains taxes are declining and the government is actively encouraging inward investment and gentrification
3. Many major companies (e.g. Electrolux, Nokia, GE) have moved to Budapest creating a major demand in the residential rental market
4. 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 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
   - Dublin €397
   - Budapest €183
5. Hungary is experiencing strong economic growth. 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
6. 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".
7. 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.