Budapest District VII - Orient Apartments

Hi,

I bought 2 apartments in this development in Oct 05. The one bed apartment -50sqm, was about 73k and the two bed apartment -57sqm, was about 86k. Both about 1.5k per m2. Has anyone else bought or looked at this development? What do you think of the prices? Do you think the apartments have appreciated in value since I bought?

Budapest, you have frightened me a little as I don't think you like this area very much, the development is on the district 7 side of Rakoczi ut just outside the ring road (so its also quite close to Dohany). What do you think?

Also what should my rental expectation be? I would also be interested to hear if anyone else has bought in this development as there has been delay and the plans have been changed. We had to change apartments a year later after being told a hotel was now being built where our original apartment was!!! I think it's now due to be completed Feb 2008.

4. Please don't address specific queries directly to individual moderators or other contributors.

Hi Padk,

It itsnt a good idea to ddress specific queries directly to other contributors as this has the effect of restricting the number of answers you will get.

aj

Hi Padk,

This part of District VII isn't particularly desirable but it is quite central and there are good transport links in place. Does the development have any extras such as swimming pool/gym, etc.? This has a significant impact on the rental prospects.

I think it's unlikely that the apts have appreciated since you bought them. There are too many similar type new developments being built at the minute so demand isn't high enough. Capital appreciation in Budapest is currently running between 5-10% for good quality investments and no higher so don't listen to any agents, who suggest otherwise.

I'd imagine that if you furnish to a high standard and don't overcharge, you would be able to rent them out fairly easily. There is a demand for luxury apartments over here at the minute. In my opinion, capital appreciation however may not be so high as the apartments are already pitched around 40% higher than local second hand properties (however many of these aren't it great condition).

Best of luck with it!
Budapest
[broken link removed]

Thanks for that Budapest.Unfortunately there isn't a pool or gym.It seems to me as if Budapest is really overrated but time will tell and what's done is done!

some independent financial expert on pat kennys show today was saying budapest isnt a great investment but im havent looked into it so dont know if he's right.

Hi padk, you should still get them rented if you furnish well and don't overprice them. The price isn't so high so they should appreciate in years to come. There is a lack of quality apartments to rent in Budapest at the minute.

As regards Budapest being a good or bad investment, it is a huge city and there are fantastic investments but also terrible ones. Research is the vital element and many investors I have met haven't done much research into the areas they are buying nor have they really thought about rental possibilities, etc. The city is a long term proposition but many Irish people I've met have become frustrated that they haven't made instant cash as can be the case at home in recent years. Some may have also jumped in too impulsively and to the wrong areas.

In my opinion, the economic fundamentals are good and the city will prosper in the years to come. It receives a substantial proportion of Direct Foreign Investment for the region and mortgage rates are likely to drop substantially when it adopts the euro in the next five years. This will make property more affordable for the locals. Unfortunately, the Irish property media has hyped the city for the last couple of years, as if there was a window for when to invest. This isn't true and there are still great opportunities to be had. Some people I know, who have bought in the past year are earning 25% on their return (e.g. holiday let apartments). Others are happy to take the less hassle option and rent longer term for 6-7%, which is very achieveable here with a good investment.

Budapest

i was wondering what was the story on those holiday to let apartments im looking at options in the next 1 1/2 years as to what to do rental wise with the new build on akacfa utca that im going to buy

I gather from the thread that "akacfa utca" the name of an area in Budapest. If so why is it never capitalised (Akacfa Ucta) when mentioned on these threads? Is this a feature of the Hungarian language? [broken link removed] = akacfa street

Ajapale, it's just bad grammar! It should be capitalised.

Seanieboy, holiday let is a real possibility in Budapest and there is a lack of medium sized centrally located apartments. Obviously, the management of something like this is more hassle but financially speaking, you might do better. You can get in the region of 75 euro per night for a two bed apartment during Summer months. Maybe it's something you could look into as a Plan B, if you don't get it rented long term. That said, in my experience, holiday makers often prefer to stay in classic buildings.

Budapest