Hungary

Since joining the EU in 2004, Hungary has evolved into one of the wealthiest and most stable economies in central Europe. On a commercial level, 45 of the world’s 50 largest multi-national firms now have a presence there, principally in Budapest which they treat as their continental headquarters. An estimated 75,000 foreigners now live in the city with a further 25,000 living elsewhere in the country. Tourism is also bringing more visitors to Hungary, which boasts a rich culture, fantastic architecture and beautiful landscape. In the first half of 2006, the country saw a 17 per cent increase in tourism, and revenue generated from tourism is predicted to more than double over the next five years.

The net result is a bullish property market. Most activity centres around Budapest, a city split into two parts – Buda and Pest – by the River Danube. In the last four years 25,000 foreigners have purchased real estate in Budapest, by far the largest group made up of British and Irish buyers. Savvy investors are targeting high-quality, city-centre apartments that are in demand from an influx of relocated expats and wealthy locals looking for modern – but affordable – accommodation. Demand is also fuelled by a third of all apartments in Budapest requiring renovation and a shortage of plots for development.

Outside of Budapest, other areas to consider include the family resorts around Lake Balaton. Pickard Trepess from agent Hunimex, says: “With the Number 7 motorway being extended from Budapest to the south-west, this is greatly opening up this area. Thermal spa towns such as Zalakaros are already booming, but the smaller ones such as Bazakerettye and villages near Lake Balaton such as Kistolmacs and Gyekenyes will become increasingly popular. We believe the Zala region, with its borders with Austria, Croatia and Slovenia (offering quick access to the Dalmatian coast and ski slopes), is the next tourist hotspot.”