Zalaegerszeg, Hungary: Investment potential

M

money man

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Hello,
Have been asked about the above location by an investor who hopes to buy property there. development site i believe. Can anyone tell me any potential downsides to this option. I have told him to look into currency get to know the local prices (not paddy prices ) and spend some time there. But on the whole does anyone know much about the area or its potential. i had never heard of it before he mentioned it and i beleive its far from budapest or any direct flights from ireland. thanks in advance.
 
Re: Zalaegerszeg Investment potential

I was only in Zalaegerszeg once, about three years ago, so I can't add much to the debate on this. It is a nice solid town, small place, with a very Austrian feel to it. Some nice old buildings downtown, but a fairly sleepy place. It is not really near anywhere, a bit more than half an hour from Lake Balaton and about three hours from Budapest, close to the Slovenian border.

Quite possible that the investor may be asked to pay "paddy prices", not too many foreigners hitting the market here I would say, and any local agent who has snared a foreigner will only be doing so because the client is potentially going to pay more than the local (and Israeli) buyers. Very hard to beat the local players at their own game here I would say, but not impossible either! Wouldn't rule it out, but it wouldn't be for me.
 
Re: Zalaegerszeg Investment potential

Investing to Zalaegerszeg sounds interesting. No pros or cons but around Lake Balaton could have more potential.

However, Szombathely and Sopron could be more fascinating than Zalaegerszeg in terms of property investment.

Anyway site visit is recommended before making a decision on overseas investment.

Best of luck with it
 
Re: Zalaegerszeg Investment potential

I didnt realise it was so far frombudapest! thought it was just about 100km . i have my reservations about it to be honest but its not my problem. Is there any on-line resource like daft or a property website that would give local prices and rents in the area?
 
Re: Zalaegerszeg Investment potential

It's over 200kms from Budapest, close to Austria and Slovenia. It's at least 3.5 hours on the train from the capital. Do you know what his strategy is? Does he intend to sell the apartments to locals? I may be mistaken, but I can't see there being much interest from Western investors. Austrian tourists would typically prefer to travel closer to Lake Balaton. Unless he has a very definite plan and good local knowledge, I'm not sure why he would be interested in this part of the country in particular.

This link might also be of interest:
http://www.askaboutmoney.com/showthread.php?t=30995

It refers to the Zala Springs development www.zalasprings.com
 
I did a personal research in relation to Zalaegerszeg. I am Hungarian but I have never ever been to this town. It is arond 240 km far from Budapest, min. 3 and half an hour with train and 3 hours with bus. I have a few friends who came from Egeszeg(as it is said in Hungary).

I have not found information about property market in this area. But It is good to know that College is missing from the town. There are some institutes of Budapest based colleges but prospective students usually go to Pecs, Sopron, Veszprem and other towns with well-known colleges. Further to that, tourists are interested in Lake Balaton and Wellness Resorts around Hungarian sea instead.

I am still sceptic that investing in Egerszeg would be the best option in West of Hungary.
 
hey money man, are you looking on something new (like zalaspring) or a house, bear in mind that the capital appriciation in the countryside is not that good, if you are looking for a holiday place might as well try a bit closer to balaton, if you are looking for investment try in budapest or along the danuba river
 
I was just trying to get some accurate info on the property market there for my friend. It seems that such info is very difficult to find and i suppose one of the reasons why people are frequently "had" when it comes to overseas investments.
 
I think the replies above are very useful for your friend, but if you're looking for an example of a website showing what seem to be local prices, then have a look at this. No idea how good or bad this company is, but there don't seem to be too many options for Zalaegerszeg:

http://www.alfaterv.hu
(Hungarian/German)

At first glance, typical prices for new builds seem to be around 275-285,000HUF/sqm (€1,100) and 170,000HUF/sqm (€680) for second hand properties.
Click on 'Tégla' for typical brick (i.e. non-panel) second hand apartments and 'Új építésũ' for examples of new build properties.
 
Thanks Budapest its a good start. At least it will provide a comparison so that he has some independent idea on the market.
 
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