Whether you walk around Budapest as a foreigner or a resident, it is hard to not be amazed by the spectacular architecture of the city. Especially in the city centre, the hundred-year old buildings create a unique scenery, a luxurious atmosphere. These buildings serve as residential properties till nowadays and usually a popular choice for investors.
The ceiling height of an average 4 meters creates a clean, elegant look, where a designer interior can add a modern feel. A luxury apartment full of sophisticated design elements, special lighting solutions and clever details can make a historical apartment both spacious and cosy.
Also, an important aspect of the investment, that lots of these apartments can be bought for a decent price according to their poor condition.
Even though some of these apartments on the market are in terrible shape, if you have the vision and the financial capacities, a renovated historical apartment can be the most elegant, extravagant, and high-value property in your portfolio.
During the 1970-1980 period the block houses became the symbol of socialist architecture. But at the same time brick-buildings were also built even in the centre, but mainly in the Buda side of the city, with the most spectacular view to the capital. These buildings don’t show much from the outside, but the apartments have very sensible arrangements of rooms and quite good structure.
Since these buildings are much more modern than the hundred-years old apartments, even a complete renovation costs less, than in a historical building and the maintenance cost is significantly less. With the smaller apartment-sizes, these properties are easy to rent for short-or long term.
In Budapest, just as in Hungary, the number of new-build apartments are less than needed. The ideal number of newly built apartments would be 35-40.000, but in the last year the number only reached 28.000 in the country. This tendency affects the prices increase in the case of rental properties as well.
A new-build apartment can be bought at practically any stage of its development, and it can go on sale before the developer has begun construction. This can offer a considerable freedom of choice about the interior design, but also mean that the investor needs to wait for the utilization.
Another potential disadvantage of a new construction is that, usually in the first three years, minor construction defects occasionally show up, such as cracks or moisture in the walls and reworking is sometimes necessary. Most builders provide a few years warranty covering any necessary reworking, but it can cause problems during the utilization.
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