Investing in a flat in the centre of Budapest may not be profitable anymore

When buying a real estate with the aim to invest in it, the city centre comes to many people’s mind, because flats are easy to let there, even for tourists. Those choosing an alternative accommodation while staying in Hungary, look for one in the centre. This is reflected in the rise of real estate prices, which is attractive for certain Hungarian and foreign investors. Nevertheless, today, it is uncertain if a flat in the centre can bring high profit, Portfolio.hu notes.

While there are more people living in their own homes in Hungary than in other European countries, Budapest seems to be an exception: more people rent flats in Budapest than elsewhere in Hungary. In the next years, even more people will be likely to decide to rent one than buy one. This process may raise demand for flats to let near workplaces, Profit.hu informs.

Currently, more than ten thousand offices are being constructed in Budapest, thus rearranging the city image. According to office market experts, new office centres will be pulled up along the road leading to the airport, and at the junctions of highways. Developing traffic and public transportation at these points of the city will push the development of economy forward.

Highways being close are also attractive; so, besides building new logistic centres, building office centres and new flats are also planned. The project called Tópark ’BE MY CITY’ in Biatorbágy is a good example. Here offices are being developed on 54,000 square metres, and 350 flats are also being built, Profit.hu informs.

A flat close to a modern office may be profitable if an international company happens to rent it, where there is high fluctuation, still, the company provides high salaries. In other words, if an employee stays for a short time at a company, she or he will rent a flat, rather than buying one. According to the data of the Hungarian Investment Promotion Agency, the number of employees working in SSC reached thirty-seven thousand in 2016, so it is worth checking where the headquarters of these companies are, and look for a flat there. Those flats may bring high profit in the long run, Profit.hu says.

Photos: www.topark.hu

Ce: bm

Source: Index.hu