Budapest - Hungary

A tale of three cities - Budapest continues to surprise and should be on everyone’s radar. Both sides of the Danube have seen strong returns in the property market and with a blend of beautiful architecture styles, there’s something for everyone.

- Sophie Kalkreuth

Budapest has been Hungary’s cultural, political and commercial heart since the towns of Obuda, Pest and Buda officially united in 1873. The city, which spans both banks of the Danube, is known as one of Europe’s most beautiful, but it has its share of scars – it was destroyed by the Mongols in the 13th century, captured by the Turks in the 16th century, and nearly destroyed again by Soviet troops in 1945. Some 30,000 buildings were destroyed during World War II and in the 1956 Revolution, and the past still lurks on the peeling architectural details of historic buildings.

However, since the end of the Cold War, the city has undergone yet another renaissance. In recent years previously neglected neighbourhoods, like the 7th district, have been transformed into edgy cultural hubs complete with galleries, cafes and performance spaces. More and more restaurants, shops and boutiques have opened their doors and a new metro line now links the colourful hills of Buda, with the wide boulevards of Pest.

The property market is also gaining momentum. Values in Budapest fell sharply during the financial crisis (over 11% between 2009 and 2012), but since 2014 investors have begun taking advantage of prices still below their pre-crisis peak. In 2014, the average price for a renovated apartment in the city centre was USD 1,700 per square metre, half as much as Prague and a fraction of london or paris.