Can anyone shed some light on Property prices in Budapest.

S

Stephen1780

Guest
Can anyone shed some light on Property prices in Budapest. I have two apartments in Budapest one is district 5 Hercegprimas and the second in District 9 , Raday street.

I have decided to sell now but am not sure is it a good time , haven't made much on the investments so want to pull out and maybe try something else. I have made app 35% on the first over 4 years and am struggling to break even on the second bought in 2006.


Cheers

S.
 
Re: Budapest

9% per year capital appreciation in what has been a flat market for the last four years is not so bad! What increase in value were you hoping for?

Hercegprimas Utca is a premier location and should do well long-term. What return are you getting at the minute?
 
Re: Budapest

I agree with budapest, your returns sound quite good. Perhaps a bit too good??
Are you fully satisfied that the valuations you have on your properties reflect the market conditions?
You will only truly know if you have made a profit or loss when you actually sell. In a market like Budapest, there can be a surprising difference between original valuation when placing property on the market and the eventual sale price.
I hope I am wrong, but I'm just trying to prepare you for a bleaker scenario than you might currently envisage
 
Re: Budapest

Stephen 1780,

What were your expectations? If you have made 35% on one(real or imagined) and you are disappointed then I have to ask what planet are you on? If you meant 3/5 % well thats not all that bad at the moment. I agree its probably a bad time to be selling property in Ireland/the UK/Budapest and other places in europe..it hasnt been that hot selling shares in the last few months either

Property investment is usually a medium/longterm investment but if you can sell quickly with a tidy profit of circa 35% you go for it but dont complain about it.
 
Re: Budapest

Good luck with selling your apartments stephen1780. I have an apartment on the market for the past year and a half, I have it listed with 2 agents anytime I contact them which is every 3 months or so the price comes down. I purchased in March 04 for 57,000 € its on the market at the moment for €59,000. My accountant in Budapest recomended a company called Hungary Property Line Kft I havn't signed any contract yet with them. The person I spoke with was very helpful and keen to do business but in my expierence they all are at first.

My apartment is in district 2 and needs a little work.

Any help would be apriciated.
 
Re: Budapest

Thanks for you help fellas, some useful tips. Focus I have just sold an apartment on Raday st but to be honest didn't make anything on this one, I use a company called Capital House , Miklos Lacatus 0036 703715137
new company and he seemed to be the only guy trying.

Had to take the bad with the good Hercegprimas made 35K over 5 years so am happy overall.




Cheers
S
 
Re: Budapest

I think you guys are NUTS to sell now, at a time where consumer confidence is at a major low ...... its a time to buy NOT sell.

But then if you think you can get better returns .... fair enough.

I personally think you will be kicking yourselves in a 1-2 yrs time, since new build prices are going to go through the roof.

This is not just wishful thinking ...... but rather the cost of development / materials costs dictate that it must be so, as new build prices surge, the secondary market will rise as well - in the longer term since newbuild will become out of reach for many.
 
Re: Budapest

As so often... only time will tell. At this point, there are so many questions left unanswered. In a few months there will be a new government. What will they decide? What will the HUF do? And the rest of the world economy?

BTW: A possible scenario could be that people just go to live somewhere outside Budapest. Inhabitants already dropped from over 2.15 million in the mid-1980s to 1.65 million anno 2008. That's already half a million possible tenants less...
 
I was in Budapest recently as a tourist and to be honest it looks like a place that is stagnating, not booming.
 
Re: Budapest

Hi Stephen178o

I will give Miklos call in the comming days. Thanks



Stephen1780 said:
Thanks for you help fellas, some useful tips. Focus I have just sold an apartment on Raday st but to be honest didn't make anything on this one, I use a company called Capital House , Miklos Lacatus 0036 703715137
new company and he seemed to be the only guy trying.

Had to take the bad with the good Hercegprimas made 35K over 5 years so am happy overall.




Cheers
S
Click to expand...
 
hi focus,
did you have any luck regarding your selling in Budapest? I have one agency but over a year no luck. Can you suggest me some agency that it could help me.

thanks
 
any update on the current situation, a friend of mine is thinking of selling her apartment in Budapest at the moment and is wondering if it is a good time or not?
 
It's as good a time as any to sell in Budapest. Prices are reasonably stable. Because there has been little to no growth for ten years, there was no collapse due to the credit crunch. There is a concern with mortgages in CHF but the reality is that these are usually small amounts. Getting high LTV mortgages was never that easy in Hungary.

If your apartment is bright, quiet, well-located, etc. and priced correctly, then it should sell relatively easily (i.e. within four to six months or thereabouts).
 
It's great to get some positive news on property for a change. What is CHF, is that a currency?
 
From yesterday's telegraph
Europe's top 20 places to invest in property


[broken link removed]

Budapest is #1
 
That telegraph article is interesting. It mentions 'good yields' as one of the reasons for Budapest's position at the top. According to this: [broken link removed] , the avg. city centre yields are around 4.5%. The figures used as the source in the telegraph article can be found here: . It looks like they've collected the data for Buda and Pest separately, which is a bit like saying a property on Camden Street has an 8% yield therefore so does Dublin. The telegraph article also mentions that there are good yields in Paris and then when viewing the data on Global Property Guide, the headline for Paris is 'Rental returns in Paris are disappointing' - which they are! There is a lot of fog surrounding the figures, and the reporting.
 
I'd read that Telegraph article with a pinch of salt. Global Property Guide is very vague and not exact in relation to Budapest property.

On the plus side, there has been neither boom nor bust in Hungarian property in the last ten years. Rental yields are also reasonably good.
 
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