Budapest real estate - When to buy property in Budapest

Budapest real estate - When to buy property in Budapest

So when is a good time to buy property in Budapest? After all, real estate business is all about buying and selling at the right time. It is generally assumed that after the accession of Hungary to the EU real estate prices will sky rocket. Today, almost a year after the accession we can say for sure that prices have not gone up. If anything, there has been a slight decrease.

The reason behind the decrease could partially be attributed to the strengthening of the Hungarian currency. Although the US dollar has been weak on a global scale, Euros and British Pounds have done well in the past 3 years. Still the Hungarian Forint has beaten these currencies. Two years ago you could get over HUF 380 for a pound, today you only get about 345. This is a big difference, especially if you are buying property. This also means that what you perceive in the value of your property is really just bad exchange rate.

Thus real estate prices over the past couple of years have not gone up. This also means that if they are going to go up, then this boom will happen relatively soon. Of course, this is only speculations but foreign buyers are becoming more and more interested in purchasing property in Budapest. Today, their enthusiasm alone is probably not enough to drive up the prices but they are starting to make a difference. If we show a flat in downtown Budapest to some potential buyers, we usually have about the same amount of foreign (Irish, Spanish, Americans, etc) buyers as locals. Naturally, these foreign investors all want to acquire downtown property and are less interested in other parts of the city.

In terms of the season, the winter months have always been a difficult time to sell property. Most local people prefer to sell in warmer season and because of this the prices are lower in the Winter. The Spring and Autumn are the busiest seasons, when you get the best prices for your property. Obviously, this also means that you can get a better deal buying something in the Winter months. The Summer is usually hot and busy with tourists, which also has a negative impact on the prices. Therefore Summer is also a time to get good deals.

All in all, it seems that right now (March 2005) is a good time for buying. The market has been the same for over two years, with no major increase after the accession. If experince from other economies is valid then prices should go up manifold within the next decade. Although Budapest is the largest metropolitan area of the region (much bigger than Vienna, for example) its real estate prices are still irrealistically low. Local people, on the other hand, think that the prices a extremely high so they are not so much in a hurry to buy. Therefore, our advice would be to keep buying until you run out of resources.

Should need help in Budapest, we would be glad to assist you. We can show you our own selection of flats and can also provide inexpensive accommodation while you are here. Please email us at imre@oktat.com.