In my last article on Budapest property, I focused on the regeneration of the Danube riverside in the city's 9th district as a potential hotspot for Budapest property investors. But, as I alluded to in that article, it's not just the new builds and office developments lining the quayside that are of interest in this inner city area. Indeed, the whole of the 9th district is 'work in progress' and as such offers superb value for money to investors looking for an affordable way in to the Budapest property market.
The area of the 9th district east of the Grand Boulevard running from Ferenc kÃ?rÃ?t to the LÃ?gymÃ?nyosi Bridge, and running parallel with Ãœlloi Ã?t, one of the city's main arterial roads and the expressway to Hungary's main international airport, was for much of the 20th century, dominated by industry. As this sector slowly moved out of the city and the urban economy shifted towards the service sector, the result was that during the late 1980s and much of the 1990s this area of the 9th was characterised by empty plots and small-disused factories lining deserted back streets.
But, international and domestic property developers have been quick to realise the enormous potential of this district, not least as it is a stone's throw from the CBD, and available at a marked discount to other more fashionable areas of the city. Stir in the fact that two of Budapest's main universities are situated in the area - the world Famous Semmelweis Medical School, and the equally renowned Corvinus School of Economics - in addition to a forward thinking district council and mayor, and all the factors necessary for regeneration have come into rapid alignment in the 9th district.
So what does this mean for the Budapest property market? Simply that would be investors in Budapest property now have more choice, and affordable choice, in a hitherto neglected area of central Budapest. Indeed throughout the 9th district, investment capital has piled in at a rapid rate. The most obvious beneficiary of this trend has been the area around KÃ?lvin Square - currently a huge building site as the interchange for the new fourth metro line, scheduled for completion in 2010, is constructed - and the pedestrianised RÃ?day utca.
Once a scruffy city centre street, snarled up with traffic, RÃ?day utca is now lined with new bars, shops and street cafes and restaurants, and practically all of its 19th century buildings have been restored to their former glory. Less obvious to the casual Budapest property observer is the regeneration and gentrification further into the 9th. Indeed, the area around TÃ?zoltÃ? utca has been transformed from a blighted postindustrial landscape into one of the most bustling 'new' neighbourhoods in the city. New and restored residential property dominates, with pedestrianised walkways, newly constructed parks and squares, and it is an area of the city increasingly popular with young professionals and students.
For investors in Budapest property, I believe the 9th district represents some of the best value real estate in the city, whether as a place to live, or, owing to the increasing demand for housing in this area, an ideal place for the buy-to-let market. In addition, thanks to the universities, both of which have a very high number of foreign students, there is also a buoyant short term let market in the district. Furthermore, as a quick walk round the area will show any potential Budapest propertyinvestor, the development is far from over, with new builds and regeneration projects currently underway throughout the district.
Richard Holmes
