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Hungarian property more attractive

An extract from an article appearing in the Budapest Times (Hungary’s leading English language newspaper for business and national news) – December 2008

The full article is viewable at:

http://www.budapesttimes.hu/content/view/10172/28/

 

Introduction (summarised)

The article begins by highlighting the fact that the current global financial crisis is an excellent opportunity to start over; many systems will auto-correct themselves, eliminating efficiencies and waste. Growth excesses will deflate and return to more realistic values.

Those who believed that buying based on debt was without limit now have to review their actual capacity to spend. There are those that believe that during recessions, firms that do not produce income fail and that the resources freed are reallocated to more productive enterprises.

At a national level now it is impossible to oppose structural reforms regarding taxation and public spending. The recent IMF loan in fact comes with these conditions.

 

Main extract

"Hungarian property more attractive

Another positive aspect to note is that Hungarian real estate value has always been distinguished by its stability; steadily developing over time despite the cyclical fluctuations typical of the sector, and in recent weeks, this trend is being confirmed.

Today in particular, given the current international economic situation and collapse of real estate prices and lower expectations of growth, investing in the property market in Hungary offers favourable opportunities to purchase, as well as secure growth expectations and returns on investment in the medium term.

Today worldwide savings are not easily allocated in the real estate markets of those countries which offered excessive growth due to a disconnection from real values. Stock markets will fair no better; in addition to the heavy losses incurred in recent months, a prolonged downward trend, or, at best, uncertain and timid growth, are expected in the coming years.

That is why, in these last few weeks new players - some investment funds and prestigious international investors who traditionally invested in finance - are turning their attention towards the property sector in Hungary, particularly in Budapest, probably seeing this promising capital as a refuge and an alternative to the crisis in financial markets and real estate bubbles in western countries."

 

Conclusion (summarised)

Hungary remains an extremely strategic and interesting market with its geographic location, competitive labour costs, infrastructure, education levels and its propensity for technological innovation.

In a nutshell, it appears we can look forward to starting finally to benefit from the effects of the virtuous economic policies we have been waiting for so long and that must now be implemented.

 

Once again, the full article is viewable at:

http://www.budapesttimes.hu/content/view/10172/28/

 

December 2008