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Strategies for
Your investment in Budapest

Budapest is also the Hungarian capital, a business location for numerous international companies, a globally recognized university city and, above all, a magnet for international city tourism. This diversity of target groups means many options for investors. 

We have compiled the most interesting ones here. 

Nepszinhaz Studenten WG Blick vom Balkon

Student 2 Go

Potential: Over 20,000 international students (around 10% of them from Germany) at Budapest’s almost 40 universities are an important economic factor for the city. Rented housing, on the other hand, is exceptionally scarce.

Procedure: We are looking for apartments in the university districts that already function as shared apartments or are suitable for 3-5 students with minimal adjustments. We concentrate on good B-locations in the 7th district, 8. and 9th district.

Advantages: All costs are known from the outset or can be estimated very easily. The rental income starts flowing as soon as the property is taken over or a few weeks later.

Disadvantages / risks: Finished shared apartments mean a higher price per square meter when purchasing. Any increase in value will be correspondingly lower.

Expected return: 4 – 7 % (after tax and after deduction of all costs)

Example: 5-bed apartment share || 3-bed flat share in top location

Airbnb Wohnung in Budapest im 9. Bezirk - Gesamtansicht

AirBnb 2 Go

Potential: Budapest attracts tourists and business travelers all year round: currently 12 million overnight stays per year. With 16% of Hungary’s economic output, tourism is a pillar of the economy, and a good 40% of this is accounted for by privately rented accommodation a la Airbnb.

Approach: We are working with developers who are completing apartments in central districts of Budapest, and where the Airbnb license question has already been answered positively. We often work to ensure that these properties are perfectly adapted and equipped for Airbnb guests.

Advantages: With the complete equipment and the license already granted, the most important milestone has been reached – as a buyer, you take over a running business and don’t have to worry about anything else.

Disadvantages / risks: The higher purchase price, and the theoretical possibility of Airbnb regulation, which could make the model unprofitable. However, due to the enormous importance of tourism and the high proportion of private short-term rentals in these figures, this is currently very unlikely.

Expected return: 6 – 9 % (after tax and after deduction of all costs)

Example: Airbnb 2 Go apartment

Wohnzimmer in Ferien-Apartment in Budapest

Fix & Rent

Potential: Budapest has an enormous stock of historic buildings, but many of them have not been renovated for decades. So the chances are good of finding an apartment in an attractive location whose value can be increased enormously through renovation. But instead of selling it immediately, as would be the case with “Fix & Flip”, you hold the property and realize an excellent rental yield for at least 5 years (end of the speculation period).

Approach: We find properties in need of renovation, make the plans to match the objectives, and work with partners who can renovate such old apartments from the ground up and at a reasonable price. We then take care of the finishing touches and marketing: whether tourists, students, digital nomads, foreign executives, the film industry: there are many lucrative target groups. IMPORTANT: We always make sure that an apartment is always attractive to more than one target group.

Advantages: Because of the lower price per square meter, you can buy larger spaces and have significantly more design freedom, for example by dividing them into 2-3 independent apartments. The refurbishment has also led to an immediate increase in the value of the property, which will significantly increase the overall return.

Disadvantages / risks: The costs of a refurbishment and the time frame can sometimes deviate significantly from the initial estimate. The reasons for this are not always within our own sphere of influence. So you have to allow for a bit of a buffer, both in terms of budget and time planning.

Expected return: 6 – 10 % (plus capital appreciation)

Examples: 2 Airbnb units from one apartment || student flatshares

Studenten-WG im 13. Bezirk

Value memory

Potential: There are locations in Budapest, such as the 5th and 12th districts, which are low-yielding due to high prices, but at the same time have a high prestige value. Typically, purchases are only made with equity, so prices hardly react to the banks’ interest rates. Fans of these locations therefore emphasize the high value stability of such investments, and that you can also liquidate your property quite quickly in case of doubt.

Approach: We work with partners who specialize as brokers or developers in locations such as the 5th district or the Buda side. We pay attention to historical buildings (no new construction) in good condition. As space is at a premium, loft conversion projects are also of interest. International buyers pay prices per square meter from 6,000 euros upwards in an appropriate environment. It can therefore also be worthwhile to deliberately secure a property in need of renovation, renovate it later and then sell it tax-free after 5 years.

Advantages: Properties close to the city center are always in demand if, in addition to the location, the quality of the building is right. Since the introduction of the Golden Visa in 2024, this mainly affects properties in the luxury segment over 500,000 euros. However, due to the low price level in international comparison, the value for money is astonishing.

Disadvantages / risks: Letting in this location will nevertheless not bring in significantly more, so that a net rental yield will only reach 4% with difficulty.

Expected return: 3 – 4 %

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also for appointments on site in Budapest.