Construction projects increase in Budapest
March 17th, 2016

Construction projects increase in Budapest

To keep up with the growing economics, increasing purchasing power and high demand of urban living, vacant lots are being developed and prices of new apartment buildings keep rising in popular districts. The new Family Housing Government Benefit (CSOK) and the reduced VAT of the newly built homes all favour the new-build market in Hungary.

 

 

Investments started before as well as new ones come-on stream

 

TriHolding Group responded to the growing demand of new built homes by constructing K40, a 7-storey apartment building, by preparing several more projects and by purchasing new lots. If the present positive trend continues, the company may even provide 1000 new apartments in Budapest within the next 2-3 years.  

New luxury residential apartments in the Budapest party spot  

Triholding, the developer of the renovation of Gozsdu Court and constructor of Marina Part starts the project in Király Street, in the main party spot of Pest. The expected delivery date of the K40 project will be at the end of 2017. Clients can choose from 105 apartments of between 28 and 95 m² with 900.000 HUF/ m².

 

Attractive opportunity both for investors and tenants

 

 K40 apartments are expected to attract both investors and potential tenants. Tenants tend to draw to the more popular urban living and the perspective valorisation of properties in the area. Investors, however, value the gradual growth of the price of the property of the district and the return of 6-8% from the short term rentals.

Further high-scale projects

Beside the 100 apartments in Király Street the company is working on another 100-apartment project in Klauzál Street, in district 7. The first phase of the construction of 600-700 new apartments in district - 250 apartments – will be launched this year.

Apartment prices in the CEE region:

  • According to expert Hungarian apartment prices are at the level of Romania and Montenegro
  • In Slovakia the average price is higher (30 %)
  • In Poland it is significantly higher (60%)
  • In Prague, in the capital of the Czech Republic it is the highest (120%)

 

Being aware of the apartment prices in the neighbouring countries, a question arises: Can the m² price of 900.000 HUF in the downtown Of Budapest be considered expensive?

 

 

(Source: http://www.penzcentrum.hu/otthon/luxuslakoparkot_huznak_fel_a_pesti_bulinegyedben.1048552.html)

 

 


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