Marina Part, District 13, Budapest

I am currently in the process of completion in purchasing a one bedroom flat in the Marina Part development in district 13. The developer is a respect Hungary called Autoker and is the largest marina development in the city with up to 3,500 flats when the four phases have been fully released. It equates in a way to the docklands area of London interms of development.

Has anyone else bought properties in this development?.

What is the rental potential and the approximate rent achievable?. The likely market will be the local Hungarian market. My flat is one nedroom, ground floor garden flat with a parking space.

How are prices are the moment for this type of development?. Is it better to hold it for say four year+ in the run-up to Hungary's entry into euro.

hiberniia,

I would imagine if you tried to sell your new build at this stage you would probably lose money. So I think if you can, you should be looking at keeping the property for 5-10 years if you want to make a profit.

Others have suggested that property on average has increased by about 10% annually over the last couple of years.

Hi hiberniia,

I would imagine that the best thing is for you to hold on to this apartment for at least a few more years. Budapest is a long term investment and if you sell now, you will probably lose money as new build prices haven't really increased in the last while. The Marina Part project is likely to be popular as location is good and there aren't that many new developments which are so close to the Danube but in my opinion, there is likely to be an oversupply of new apartments in Budapest soon and you will need to expect a lowish rent and furnish well. The fact that the apartment is ground floor and courtyard facing also decreases the rentability as I'm sure you know. Also, I think that your target market will be expats rather than just Hungarians. The average wage here is around 500 euro per month and a typical wage for professional Hungarians is around 1000 per month. Your rental income is likely to be around 400 euro+ per month but depends if the flat is bright and well furnished. This part of District XIII is being touted as a new business centre for Budapest in the next few years, but at the minute, it doesn't look very attractive and isn't really that close to the proper city centre.

Best of luck with it,
Budapest