Hungarian and Bulgarian property, Why?
- Thread starter noelf
- Start date
The vast majority of international investors bought in Hungary between 2004-2005, during a very narrow timeframe. Most did not do any research and purchased the type of apartments, which locals had no interest in. It seems to have been based purely on greed, rather than any expertise. I'd imagine that a similar scenario existed in Bulgaria.
Fortunately for the Budapest-based investors, at least they invested in a major city, where there is strong rental demand for the right type of property.
Fortunately for the Budapest-based investors, at least they invested in a major city, where there is strong rental demand for the right type of property.
Yes as I though, no foot work looking for an easy kill, They all think because property made money here it would do it there.
But they never looked at why property made money here and proably still do not know why it did...
To put it very simply without going into massive demi's and stat's
Drop in interest rates.
Rise in employemt and wages.
Low emigration.
Attractive incentives for investment, commercial, industruial, manufacturing etc
Local demand for rental and Purchase.
The people that are getting really hurt here now are the ones who bought bases on the influx of non nationals.
But guess what, they never realised that that demand would only be a temporary one.
As I have said before; never buy in the hope that a property will be rented by foreigners as thats a very short term thing and normally tied up by the local big boys, especially in the corporate & diplomatic sector and they normally go for high end close to the old city area's or white collar centers.
Buy something that a local will rent or actually buy...
Local demand by local people is they key....
What drives the rental market in Budapest by the way??????
But they never looked at why property made money here and proably still do not know why it did...
To put it very simply without going into massive demi's and stat's
Drop in interest rates.
Rise in employemt and wages.
Low emigration.
Attractive incentives for investment, commercial, industruial, manufacturing etc
Local demand for rental and Purchase.
The people that are getting really hurt here now are the ones who bought bases on the influx of non nationals.
But guess what, they never realised that that demand would only be a temporary one.
As I have said before; never buy in the hope that a property will be rented by foreigners as thats a very short term thing and normally tied up by the local big boys, especially in the corporate & diplomatic sector and they normally go for high end close to the old city area's or white collar centers.
Buy something that a local will rent or actually buy...
Local demand by local people is they key....
What drives the rental market in Budapest by the way??????
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I agree with you up to a point, noelf. Keeping in touch with the local market is vital. However, a major tenant base in Budapest is in fact foreign students and professionals. This has been growing year by year for the past twenty years. The standard of Hungarian rental apartments is very low - either ugly old furniture or the most basic IKEA packages, so although there are a large number of properties available, (typically) Western tenants find it difficult to find good apartments, in the locations where they want to live, at reasonable rents. I've found that by building up relationships with universities, etc. and providing exactly what tenants want, that it's possible to get good rental returns with hardly any gaps.
The chance of somebody being able to successfully invest in and rent out a property in Budapest is very low, unless they really know what they are doing. Working out a specific strategy is vital when renting out a property here. It's a bit of a minefield. In Dublin, I stuck to areas that I knew inside-out. I follow the same logic in Budapest and wouldn't dream of investing in a district I wasn't overly familiar with, much less in a city that I didn't know extensively.
The chance of somebody being able to successfully invest in and rent out a property in Budapest is very low, unless they really know what they are doing. Working out a specific strategy is vital when renting out a property here. It's a bit of a minefield. In Dublin, I stuck to areas that I knew inside-out. I follow the same logic in Budapest and wouldn't dream of investing in a district I wasn't overly familiar with, much less in a city that I didn't know extensively.
Yes Uni towns always do well, I did not know that Budapest was an icon of learning, guess you learn something every day.
Well I am back out to B.A on monday so I will have a chat with some of the Hungarians I deal with and get their views on it.
There are a few agancies run by Hungarians in Slovakia selling both SK & H properties, in fact many Slovak's in B.A are buying in H. as its so close and properties are cheaper. I am considering buying a couple in Hainberg ( Always spell that place wrong ..lol) close to B.A . looking into the tax implications at the moment.
Our group is currently sitting on three Sites (about 42 H.A.) just outside B.A on the larger side of things.
I doubt we will build in the next two years at least. But we will finish the Building permit stage by March and then its sit tight time.
B.A has totally over heated at the moment.
Propblem with Rezzi projets in Central europe is the houses are too big for the market as are the plots.
Contrary to what the agents say we found that small is better.
400-500m plot and 100-120m houses sell like crazy, but I am not too sure about this year.
By the way I find you info. very intersting on the plus side.
Rezzi housing is not for the foreign investor though unless you go for low Rent and good Cap but its a pretty big risk, especially now.
I would not advise it.
Budapest has always been renowned as a centre of learning. The veterinary college, medical schools, dental schools and music academies are world renowned and attract thousands of students from abroad. About twenty vet students from ireland alone attend the college every year for instance. Vets graduate from Budapest with what is probably the most respected doctorate in Europe, certainly well ahead of Ireland and the UK. Likewise doctors and dentists from Budapest colleges are welcomed in every country on the back of the respect for the Hungarian degrees.
By the way, where on earth is B.A?
Yes, it's a major university city. Fees are comparatively low, standards are high and many students come here, who don't get into colleges in their home countries (usually Ireland, Finland, Norway, Sweden, Turkey, among others). There are English-language classes in several of the universities and renting a property to a dental, veterinary or medical student on the first year of a five or six year programme is obviously great for any landlord.
Interesting to get your perspective on Bratislava. Hungarians are very envious of Slovakia (once the backwater of Europe) getting so far ahead of them! Budapest prices haven't really moved since 2002/2003 and hasn't had a property or credit bubble, unlike pretty much every other capital in the region. Unemployment is low and rents are good (if you know what you're doing!) and in the broadest sense, the country is on the right track economically. The global economic risk aversion of the last six months hasn't helped things though and the HUF has now fallen again, though not as badly as the PLN.
Interesting to get your perspective on Bratislava. Hungarians are very envious of Slovakia (once the backwater of Europe) getting so far ahead of them! Budapest prices haven't really moved since 2002/2003 and hasn't had a property or credit bubble, unlike pretty much every other capital in the region. Unemployment is low and rents are good (if you know what you're doing!) and in the broadest sense, the country is on the right track economically. The global economic risk aversion of the last six months hasn't helped things though and the HUF has now fallen again, though not as badly as the PLN.
B.A = Bratislava
Was it a center of learning even during the communist days? were they open to westerners then?
I know more about the old Czechoslovakia etc history wise, I know Ghengis khan got that far up and piled bodies on one side of the Danube to intimidate the other city, but as for modern history I dont know much really.
Never realy looked at hungary as there was no major industrial or commercial interest there in comparison to Slovakia, Poland and Czech.
Have to say though beautiful city, very difficult language though.
AFAIK it was known as a centre of excellence within the soviet block, and it opened up to the west in the last 20 years. Colleges for foreign students have English lectures etc.
It is thought that Budapest has a reputation that is far ahead of many other central and Eastern European cities because of the strictness of the exam system. It was common in many eastern European countries for students who were well connected or who could make certain payments to get better grades, and the rumour mill would suggest that this practice has not died out in many such places. Budapest has managed to earn and retain a reputation for a clean exam system, and this is why it attracts the business of foreign students in such high numbers.
It is thought that Budapest has a reputation that is far ahead of many other central and Eastern European cities because of the strictness of the exam system. It was common in many eastern European countries for students who were well connected or who could make certain payments to get better grades, and the rumour mill would suggest that this practice has not died out in many such places. Budapest has managed to earn and retain a reputation for a clean exam system, and this is why it attracts the business of foreign students in such high numbers.
Just to confirm what budapest has been saying; every tenant that I've had in my Budapest apartments have been students. Generally, their countries of origin are Israel, Germany, Austria, Slovakia. I know of a couple of universities in the city which maintain databases of appropriate apartments and, exactly as you say, if you build a relationship with them, I would imagine that there would be a never-ending supply of tenants.
A friend of mine in Slovakia, worked in Budapest as an english teacher, so he has good knowledge of the place, we was formerly an accountant within a family practice in Oxford in the UK, he buys and sells in Slovakia to mainly locals as a side line to his teaching practice, mostly small stuff really but he does quite well out of it.
Anyway he has never gotten into it with me about Budapest, must ask him more about it.
It cant stay stagnant forever there if it has had no real cap growth in
the last few years.
In slovakia there is a thing called dražby simular to an executors auction
is ther simular in Hungary?
Anyway he has never gotten into it with me about Budapest, must ask him more about it.
It cant stay stagnant forever there if it has had no real cap growth in
the last few years.
In slovakia there is a thing called dražby simular to an executors auction
is ther simular in Hungary?
Rekhib,
Have the tenants you have had been good tenants? Paid rent on time and not destroyed furnishings etc?
Im probably going to be letting to students also.
I suppose one good thing is that you are more likely to get a non smoking tenant if you rent to foreign students on medical courses.
Have the tenants you have had been good tenants? Paid rent on time and not destroyed furnishings etc?
Im probably going to be letting to students also.
I suppose one good thing is that you are more likely to get a non smoking tenant if you rent to foreign students on medical courses.
Lol, very good. Yes, as I say, no problems whatsoever, I actually became quite good friends with one of the tenants. I generally make a point about going over there, having a look at the apartments between tenancies, introducing myself to the new tenants and saying that if they ever need anything then please don't hesitate to circumvent the management company and give me a call.
I do this in Hungary, Ireland and France and I think once you make personal contact, people are more likely to treat the place well. A case in point was a friend of mine recently who was having difficulty meeting his rent, I said to him, why don't you ask your landlord to take a hit on the rent and he said, 'ah no, sure he's very good to us, nice guy and there's no questions asked if something needs replacing.' I know this isn't the case all the time and it isn't always possible to meet every tenant but I find it's a good de facto standard of operating.
I do this in Hungary, Ireland and France and I think once you make personal contact, people are more likely to treat the place well. A case in point was a friend of mine recently who was having difficulty meeting his rent, I said to him, why don't you ask your landlord to take a hit on the rent and he said, 'ah no, sure he's very good to us, nice guy and there's no questions asked if something needs replacing.' I know this isn't the case all the time and it isn't always possible to meet every tenant but I find it's a good de facto standard of operating.
J
JohnGajah
Guest
Is there any way to get information on completed property transactions in Budapest. I find that the absence of transacted prices a big hinderance to deciding a fair value on properties here. Most of the information available (provided by agents) is based on asking price, which for Hungarians, is their fantasy price based on the car they are looking to buy.
I generally use this link:
column 2 is 'average price sq.m in EUR'. Its a mix of new and existing apartments.
For example District 6 average of €1360 sq.m is about right, with maybe 1500-1600 for a well located new build.
J
JohnGajah
Guest
@PaddyD - Thanks. The problem is that this website (which is the most comprehensive I've seen) reflect the asking price. Many Hungarians (who dont need to sell) usually try to start with a high opening price to see if there are foreigners willing to pay, or come close to these prices.
Knowing that property transactions(to foreigners) have fallen 90% in Budapest in 2008 (from 5000 to 500), and 66% (15 000 to 5 000) in 2007, I'm wondering if the transacted prices are significantly lower.
Knowing that property transactions(to foreigners) have fallen 90% in Budapest in 2008 (from 5000 to 500), and 66% (15 000 to 5 000) in 2007, I'm wondering if the transacted prices are significantly lower.
Consider those prices on that website are in Euro and were based on a exchange rate of 266 florint to the Euro ... then consider the actual exchange rate is over 300 florint to the Euro now. Those prices are out of date my friend.
However Hungary doesnt really have a house price index and thus prices will not offically fall since it is the prices of the other capital cities in the region that dictate what city apartment should sell for.
Having said that - it is well known that as an average, prices in Budapest are a good 20% cheaper than other EU capital cities.
New apartment asking prices will not fall because of the cost of development of new apartments unless the developers are willing to sell at a loss.
The way I look at this situation is that it a good for the market since there are too many new build flats - excess in supply. Thanks to the credit crunch there are far fewer developments - and the ones that were planned have been delayed. The economy will always result in the majority of job losses for the unskilled - low paid workforce primarily (temporary agency workers) and thus that part of society that is not buying new build anyway.
There is still demand for new property, just fewer from the international corporate clients. The stupid Loan to value % in the west have not really made it to Hungary in a substantial way and thus the return to norm within the Hungarian Mortgage lending will not have a huge impact on the market.
The economic conditions in Hungary have never been easy but looking to the future, where the Florint is so weak and where interest rates are low since inflation is low. Hungarian Florint lending will once more be attractive considering the monatary loosening elsewhere in the world "quanititive easing" is essentally another word for printing money - and this will lead to high inflation and high interest rates no matter what the politicians say. It has always been thus. There has never been quantitive easing without a subsequent period of high inflation.
I came across a good explaination of quantitive easing and the effect it has.
Think of the pool of money - the collective savings of the country - for example the UK or Ireland as a dam at the origins of a river, during the good times the dam is full of borrowed water - easy debt - cheap to service and pay back. Now consider the credit crunch - that particular source of water / money is massively restricted and expensive to repay, thus the damn becomes more and more dry - deflation kicks since money is no longer available so cheaply and thus slowly the population is freed from the burdens of debt either by repaying it or defaulting / going bankrupt. When the debt levels are so massive that the debt cant be repayed / debts increasing (Western economies right now), the cut backs begin, job losses and incomes fall. This time round the situation is so bad that high inflation / hyper inflation is the only way to save the economy by effectively making the currency worth less eroding the value of debt and unfortunately savings. The population can't afford to buy things thus they do not spend - we are effectively trapped in a negative feedback loop that will just lead to more and more monetary easing & more inflation.
The problem comes when the dam starts to refill since there is all this new money about, but the banks still dont lend and the people dont spend but save since their savings are worth so much less and their houses are worth less and prices so much higher since their wages are worth less. So the damn keeps filling and filling, they build the dam bigger and bigger and still it keeps filling until - at last the housing market bottoms out (approx 2013 /2014 in the UK / Ireland - approx another 15-20% fall). Banks will start to lend again, home owner loans will be available once more for those still with equity but then the dam will burst the water floods out inflation kicks in and this time the interest rates go up and up to make people save and prevent people from taking out loans to suck out the massive excess of liquidity in the market.
The point to this little essay is where do you want your money? Interest rates in Hungary are already high - but falling but so is inflation. Interest rates in UK are low but will be rising. The Hungarians cannot offer quantitive easing as a solution since it is against the rules of their IMF loan and EMU 2 entry in 2012 thus the Florint - although now weak will be strong in comparison
The answer to your question consider the place you are and how bad it is going to get. Investing smart is all about timing watching property cycles, buying now in Hungary is good - if you can since there are lots of desperate international sellers. Just put in a cheeky offer say 15-20 below their asking price. At least in Hungary the value of your money wont be eroded away by inflation.
Anywhere you invest money right now where you are not losing money is a good investment. Hungary is in an entirely different place in the property cycle since prices were already low before this credit crunch hit. Thus there should be less pain on the way out.
Places where property has boomed recently - specifically places fueled by international property speculators are those places to avoid since that is where the greatest falls will be.
For those looking for some kind of indication of how long prices will fall - look at the last big house price crash - prices fell for 4-5 years, which indicates that we still have a good 3yrs + to go. However this crash is far worse than any preceeding because of the fact that the bubble was the biggest in history and thus prices have to fall respectively to affordable levels. Prices will not rise as an average until after 2012.
However Hungary doesnt really have a house price index and thus prices will not offically fall since it is the prices of the other capital cities in the region that dictate what city apartment should sell for.
Having said that - it is well known that as an average, prices in Budapest are a good 20% cheaper than other EU capital cities.
New apartment asking prices will not fall because of the cost of development of new apartments unless the developers are willing to sell at a loss.
The way I look at this situation is that it a good for the market since there are too many new build flats - excess in supply. Thanks to the credit crunch there are far fewer developments - and the ones that were planned have been delayed. The economy will always result in the majority of job losses for the unskilled - low paid workforce primarily (temporary agency workers) and thus that part of society that is not buying new build anyway.
There is still demand for new property, just fewer from the international corporate clients. The stupid Loan to value % in the west have not really made it to Hungary in a substantial way and thus the return to norm within the Hungarian Mortgage lending will not have a huge impact on the market.
The economic conditions in Hungary have never been easy but looking to the future, where the Florint is so weak and where interest rates are low since inflation is low. Hungarian Florint lending will once more be attractive considering the monatary loosening elsewhere in the world "quanititive easing" is essentally another word for printing money - and this will lead to high inflation and high interest rates no matter what the politicians say. It has always been thus. There has never been quantitive easing without a subsequent period of high inflation.
I came across a good explaination of quantitive easing and the effect it has.
Think of the pool of money - the collective savings of the country - for example the UK or Ireland as a dam at the origins of a river, during the good times the dam is full of borrowed water - easy debt - cheap to service and pay back. Now consider the credit crunch - that particular source of water / money is massively restricted and expensive to repay, thus the damn becomes more and more dry - deflation kicks since money is no longer available so cheaply and thus slowly the population is freed from the burdens of debt either by repaying it or defaulting / going bankrupt. When the debt levels are so massive that the debt cant be repayed / debts increasing (Western economies right now), the cut backs begin, job losses and incomes fall. This time round the situation is so bad that high inflation / hyper inflation is the only way to save the economy by effectively making the currency worth less eroding the value of debt and unfortunately savings. The population can't afford to buy things thus they do not spend - we are effectively trapped in a negative feedback loop that will just lead to more and more monetary easing & more inflation.
The problem comes when the dam starts to refill since there is all this new money about, but the banks still dont lend and the people dont spend but save since their savings are worth so much less and their houses are worth less and prices so much higher since their wages are worth less. So the damn keeps filling and filling, they build the dam bigger and bigger and still it keeps filling until - at last the housing market bottoms out (approx 2013 /2014 in the UK / Ireland - approx another 15-20% fall). Banks will start to lend again, home owner loans will be available once more for those still with equity but then the dam will burst the water floods out inflation kicks in and this time the interest rates go up and up to make people save and prevent people from taking out loans to suck out the massive excess of liquidity in the market.
The point to this little essay is where do you want your money? Interest rates in Hungary are already high - but falling but so is inflation. Interest rates in UK are low but will be rising. The Hungarians cannot offer quantitive easing as a solution since it is against the rules of their IMF loan and EMU 2 entry in 2012 thus the Florint - although now weak will be strong in comparison
The answer to your question consider the place you are and how bad it is going to get. Investing smart is all about timing watching property cycles, buying now in Hungary is good - if you can since there are lots of desperate international sellers. Just put in a cheeky offer say 15-20 below their asking price. At least in Hungary the value of your money wont be eroded away by inflation.
Anywhere you invest money right now where you are not losing money is a good investment. Hungary is in an entirely different place in the property cycle since prices were already low before this credit crunch hit. Thus there should be less pain on the way out.
Places where property has boomed recently - specifically places fueled by international property speculators are those places to avoid since that is where the greatest falls will be.
For those looking for some kind of indication of how long prices will fall - look at the last big house price crash - prices fell for 4-5 years, which indicates that we still have a good 3yrs + to go. However this crash is far worse than any preceeding because of the fact that the bubble was the biggest in history and thus prices have to fall respectively to affordable levels. Prices will not rise as an average until after 2012.
wexford dude
Registered User
- Messages
- 112
BudaRich,
I don't understand why some commentators think that Hungary is in a stronger position than other countries.I recently completed the sale of an apartment in Budapest (sale price in euro - unfortunate for the buyer).The sales agent told me that I would be getting at least 15% less now and would be very unlikely to get a euro sale.
The point I want to make is this
eople are advised to invest small & invest central in Budapest.If
I don't understand why some commentators think that Hungary is in a stronger position than other countries.I recently completed the sale of an apartment in Budapest (sale price in euro - unfortunate for the buyer).The sales agent told me that I would be getting at least 15% less now and would be very unlikely to get a euro sale.
The point I want to make is this
eople are advised to invest small & invest central in Budapest.Ifwexford dude
Registered User
- Messages
- 112
BudaRich,
I don't understand why some commentators think that Hungary is in a stronger position than other countries.I recently completed the sale of an apartment in Budapest (sale price in euro - unfortunate for the buyer).The sales agent told me that I would be getting at least 15% less now and would be very unlikely to get a euro sale.
The point I want to make is thiseople are advised to invest small & invest central in Budapest.If you invest €60,000 what is your realistic returns.It may make sense if you are paying hard cash and looking for a long term 15 - 20 year investment.If you take out a mortgage surely you are better off investing in Ireland in a town or city close to you that you know well and have easy access to.With your foreign apartment you will have tenant finding fees, maintenance fees as the need arises, cost of transferring money home, foreign travel for purchasing the apartment etc.For the small money you are investing I cannot see how the returns could justify sending this much money abroad unless you intend starting small with a view to increasing your investment portfolio over the years.
I have been monitoring house prices in the south east for the past few years and there are substantial reductions in the past year and a half.The estate agents are trying to mask the house price reductions by offering small reductions on an on going basis but there are properties that I can see the owner has clearly told the estate agent to drop the price by 40 - 50% to get the house sold.There are now houses appearing in towns in the south east for less than €100,000 and this downward trend may well continue.So in a few years an investment of between €70,000 - €80,000 may be possible.The house is easily accessible for maintenance pruposes , find your own tenants, no initial foreign travel but much easier to do your own research and visit in the first place, no currency transfers etc.
This is just a thought but it may have merit.
I don't understand why some commentators think that Hungary is in a stronger position than other countries.I recently completed the sale of an apartment in Budapest (sale price in euro - unfortunate for the buyer).The sales agent told me that I would be getting at least 15% less now and would be very unlikely to get a euro sale.
The point I want to make is this
eople are advised to invest small & invest central in Budapest.If you invest €60,000 what is your realistic returns.It may make sense if you are paying hard cash and looking for a long term 15 - 20 year investment.If you take out a mortgage surely you are better off investing in Ireland in a town or city close to you that you know well and have easy access to.With your foreign apartment you will have tenant finding fees, maintenance fees as the need arises, cost of transferring money home, foreign travel for purchasing the apartment etc.For the small money you are investing I cannot see how the returns could justify sending this much money abroad unless you intend starting small with a view to increasing your investment portfolio over the years.I have been monitoring house prices in the south east for the past few years and there are substantial reductions in the past year and a half.The estate agents are trying to mask the house price reductions by offering small reductions on an on going basis but there are properties that I can see the owner has clearly told the estate agent to drop the price by 40 - 50% to get the house sold.There are now houses appearing in towns in the south east for less than €100,000 and this downward trend may well continue.So in a few years an investment of between €70,000 - €80,000 may be possible.The house is easily accessible for maintenance pruposes , find your own tenants, no initial foreign travel but much easier to do your own research and visit in the first place, no currency transfers etc.
This is just a thought but it may have merit.
Why NOT England or Ireland.
1. Property prices WILL continue to fall for another 3 yrs MINIMUM.
2. Prices will not RISE until until 2014.
Why buy a non-performing asset and hold it in an high inflationary period (yes high interest rates and inflation are on the way!).
People do not think ahead.
THINK!!
Interest rates are low now - and yes you can get a fixed rate deal at 2.7% for 2 yrs through HSBC but 2 yrs just doesnt cut it since its just not long enough.
The first indication that prices will rise is the recovery of the house builders, and right now they are laying off 1000's of workers - a long long time before recovery comes.
http://www.guardian.co.uk/business/2009/feb/25/rents-fall-amid-glut-in-lettings-market
Why risk it?
There are MANY reasons to invest in Budapest - reasons that im not willing to discuss on this forum. If you dont understand the inner workings of the mortgage market in Hungary you will not be able to make the most of the situation there.
One reason property prices wont fall in Hungary despite the usual desperate sellers is that there is no real house price index like there is in the UK or Ireland, there is no real way of reliably determining property value. Another good reason to say invested in Budapest is the Euro effect - the increased likelyhood of an early entry will have a profound effect once announced.
Just earlier this week there was a long article in the Financial times regarding this - the only way to save the currencies within these countries is to bring them into the Euro early despite the obvious economic problems these countries has. This view is becoming more and more common and I forsee early entry for Hungary.
1. Property prices WILL continue to fall for another 3 yrs MINIMUM.
2. Prices will not RISE until until 2014.
Why buy a non-performing asset and hold it in an high inflationary period (yes high interest rates and inflation are on the way!).
People do not think ahead.
THINK!!
Interest rates are low now - and yes you can get a fixed rate deal at 2.7% for 2 yrs through HSBC but 2 yrs just doesnt cut it since its just not long enough.
The first indication that prices will rise is the recovery of the house builders, and right now they are laying off 1000's of workers - a long long time before recovery comes.
http://www.guardian.co.uk/business/2009/feb/25/rents-fall-amid-glut-in-lettings-market
Why risk it?
There are MANY reasons to invest in Budapest - reasons that im not willing to discuss on this forum. If you dont understand the inner workings of the mortgage market in Hungary you will not be able to make the most of the situation there.
One reason property prices wont fall in Hungary despite the usual desperate sellers is that there is no real house price index like there is in the UK or Ireland, there is no real way of reliably determining property value. Another good reason to say invested in Budapest is the Euro effect - the increased likelyhood of an early entry will have a profound effect once announced.
Just earlier this week there was a long article in the Financial times regarding this - the only way to save the currencies within these countries is to bring them into the Euro early despite the obvious economic problems these countries has. This view is becoming more and more common and I forsee early entry for Hungary.