The properties I bought and sold in Hungary increased significantly in value, while those I continue to own have increased in value by around 50-60%, even when purchased during a 'flat' market. They continue to offer 7-8% rental returns, as do the majority of quality properties in Budapest. Most international and local analysts would agree that long term prospects are good for HU.
I don't think that this is the issue being discussed here though. I haven't seen much evidence that those foreign investors who purchased a coastal or ski property in Bulgaria since 2006 have experienced any capital appreciation so far and certainly not 32.2% from Q2/2007 - Q2/2008.
....research carried out by Mastercard also states that Budapest is 3rd out of 65 cities......
Methodology
The MasterCard Worldwide Centers of Commerce(TM): Emerging Markets Index is compiled from research by a panel of nine independent economic, urban development and social-science experts from leading academic and research institutions around the world, led by Dr. Michael Goldberg, Program Director, MasterCard Worldwide Centers of Commerce Program.
To form the Index, the panel rigorously identified 65 cities around the world that met their initial stringent criteria. Cities were then rated on eight key dimensions as follows:
-- Economic and Commercial Environment
-- Economic Growth and Development
-- Business Environment
-- Financial Services Environment
-- Commercial Connectivity
-- Education and IT Connectivity
-- Quality of Urban Life
-- Risk and Security
The process entailed measuring a number of carefully weighted, relevant indicators and sub-indicators that aggregate available data relevant to each dimension. The panel evaluated a total of eight dimensions comprised of 65 indicators and 89 sub-indicators to derive an Index score for each city, a process that goes well beyond traditional measures used to gauge worldwide financial and business activity.
Guys the liquidation phase has yet to start in Property (it has already run most of its course in shares/commodities). That phase will be the most dramatic in places like Bulgaria, Cyprus where there are little underlying fundamentals to hold the market up.
As per Budapests original quote about long term prospects, an interesting research carried out by Mastercard also states that Budapest is 3rd out of 65 cities it researched with whom long term prospects are best. The two ahead of Budapest are in China. See link http://www.marketwatch.com/news/sto...7465A4-4A13-4105-801E-B2D8FEEBB8BC}&dist=hppr
As per Budapests original quote about long term prospects, an interesting research carried out by Mastercard also states that Budapest is 3rd out of 65
Ajapale - given the poster names is there not a bit of Hungarian ramping going on without any substance. Is there any vested interests going on here??This is one of the primary reasons I purchased in Budapest because of the lack of a speculative bubble.
Hungary is in crisis mode today. While an IMF lifeline is negotiated, credit default swap prices for Hungary sovereign debt are set to fluctuate wildly, from a low of 420 basis points to a high of 600, and beyond. The rest of Eastern Europe waits with bated breath, hoping that Hungary default insurance costs will not follow the path shown by Ukraine (1,900 basis points, 3 years).
The Forint has dropped a whopping 30%-plus against the dollar since June. Hungary's benchmark interest rate has risen by 3% last week. The domestic bond market is virtually frozen. And, as official statistics tell the sorry tale, foreign currency loans make up almost 62% of all Hungarian household debt!
The CDX emerging market credit default swap index rose to 1,100 basis points this week and levels of 1,300 basis points are well within the realm of reality in forthcoming days. If index spreads do widen as anticipated, the impact on East European prices will be devastating.
Maybe I'm wrong, probably, because by the looks of it Irish_Bob, you'll have no trouble sellingim very glad to hear that , it will surely mean i will have no trouble selling my appartment in district 7 , ive only had it on the market for a year now
Hi MichaelDes,Ajapale - given the poster names is there not a bit of Hungarian ramping going on without any substance. Is there any vested interests going on here?
I think you are absolutely bonkers for wanting to sell out of this development, I think Karolyi Gardens (Kings Gardens) apartments are amazing investments. 5 yr goldmine.
Lets call a spade a spade. The Hungarian economy is in dire straits. BBC are saying the IMF bail-out (not finalised) could be the "one of the biggest the IMF has ever made". No point in trying to gloss over something this big. That said, this should force the Hungarian government to get it's This post will be deleted if not edited to remove bad language in gear, and maybe just maybe in 5 -10 years we'll be looking back at this and saying "close one"! ;-)
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