Hungary

Hungary has established itself as one of the leading new members of the expanded European Union. Annual inflation, as high as 17% in 1989, had fallen to a mere 4% by 2005, while the economy has been growing at around 4% a year since 2001. Inward investment and tourism are also increasing rapidly. All this has already had its effect on the property market. According to the Hungarian Central Statistics Office, average house prices rose 63% between 1999 and 2003. The market notched up further gains in the run-up to EU entry in May 2004, but things have since begun to slow, or even grind to a halt. The villain is over-supply, which has also had an impact on the rental market. If you want to make money in the short term, it is not as simple as putting down a deposit on any off-plan development you find on the internet and letting a rising market take care of the rest. You should instead act as if you were buying in London or any other mature market: do that little bit more research to try and determine which areas appear to be becoming more fashionable and buy there. It isn’t easy, but the extra effort can certainly pay dividends.

If you want to know more, you’ve got to buy the book…