LOCATION, LOCATION, LOCATION
The property market in Eastern Europe has attracted heaps of interest from Western European buyers. Robert Hodgson looks at where the bargains can be found
You can?t have failed to notice how many people are
talking about buying property abroad these days.
The capitals of the new EU countries are regularly
presented as ideal places to invest in real estate, but are
they really such a bargain? The answer is that they can
be, but you have to know what you are lookng for and
do some thorough research. Let?s take a look at Budapest, Warsaw, Vilnius
and Sofia ? all destinations to which Wizz Air flies, and all cities that have
attracted a lot of interest from foreign property buyers in recent years.
One thing is for sure ? property in the formerly Communist countries
(when will they lose that tag?) can seem almost comically cheap to
buyers from western Europe. The average price for a flat in central
Budapest, for example, is around ?1,200 per square metre, so a twobedroomed
flat can be bought for as little as ?50,000. The expectation
of rapid price rises led to a gold rush of mostly Irish and UK buyers in
the run-up to EU accession ? unfortunately, however, the really big
price rises had already occurred in the late 1990s.
BUDAPEST BECALMED
One thing that tends to strike people who actually live
in these cities is that what they read in the newspapers
doesn?t always reflect the reality they see around them.
Budapest, Warsaw and Prague were the first cities in
post-Communist Central Europe to attract the attention of
Western housebuyers, and between the early 1990s and
2000 there was a rapid rise in house prices.
Many companies dealing in Budapest real estate still claim
that prices are rising by 10% or more each year. This is,
unfortunately, not the case. If you had been one of the risk
takers who bought a flat in central Budapest in the mid- to
late 90s, you would now have seen capital appreciation
of well over 100%. Now, due mainly to a large amount of
new construction, the average price of a flat in Hungary?s capital has
stagnated, and average prices are only predicted to rise in line with
inflation over the next year. That?s not to say that a well-chosen flat in
an up-and-coming location will not see a substantial rise in value over
the coming years, but you?ll need inside knowledge to find out where
these locations are.
WARSAW RISING
In Warsaw, the average price of a second-hand flat is slightly lower
than Budapest at around ?1,000 per square metre (partly a reflection
of the lower quality of the remaining old housing stock). In both cities,
new flats from developers are typically priced at between ?1,400 and
?4,000, and you get what you pay for ? better locations and higher
quality will cost you
more. In certain areas of
either city you can find
basic new apartments
for less than ?1,000
per square metre,
especially when bought
off -plan (that is, before
construction has begun).
VILNIUS VARIETY
The market for flats in
Vilnius is diff erent if
only because this is a
much smaller city than
Budapest or Warsaw,
and foreign housebuyers were slightly slower in to show interest
here. Prices have risen dramatically in recent years, however, almost
catching up with Budapest and Warsaw. New flats in the centre are on
the market from around ?1,200 per square metre, though they can
be much cheaper further out. As for old flats, there is a lot of variation
depending on condition and prestige, but two-bedroom flats can still
be found near the beautiful Old Town for ?100,000.
BULGAR OFF
Bulgaria is the odd one out here as it is not yet a member of the EU, although it is set to join in 2007. Many investors look at Bulgaria as the new hot ticket ? average flat prices in the capital Sofia are still below ?1,000 per square metre, and some people hope to see substantial rises after EU accession. Also, Bulgaria has resorts on the Black Sea coast, where new holiday apartments are being off ered for as little as ?30,000. Many foreign buyers are being attracted by the Mediterranean climate and low prices of this up-and-coming tourist destination. There is also great potential for the development of ski tourism in the western part of the country.
BUYER BEWARE
If you want to buy the holiday home you have always dreamed about, now is as good a time as there has ever been. If, on the other hand, you are thinking of taking out a buy-to-let mortgage (which will probably be secured against your own home) to buy a flat in a capital city, you will have to do some serious research in order to establish what is lettable and what isn?t. Remember that the flats are cheap for a reason: the average wage in Central and Eastern Europe is far lower than in Western Europe, and so therefore is the average selling price, and the rent you can expect to attract.
Ultimately, nothing compares to visiting a place yourself. If you can, try to find some people who have already bought and speak to them. There are still plently of bargains to be found if you are prepared to invest a bit of time and energy looking for them. One thing is certain: these countries are developing quickly and will continue to do so ? and you could be there watching it happen.
INGATLAN FELLENDÜLÉS VAGY MEGTORPANÁS?
Budapest, Varsó, Vilnius és Szófia – mindegyik a Wizz Air célállomása – az utóbbi években felkeltette a külföldi befektetők érdeklődését. Jelenleg a nagyszámú fejlesztésnek köszönhetően a magyar fővárosban az átlagos lakásárak nem változnak, és az előrejelzések szerint az árnövekedés jövőre csak az infláció mértékét követi majd. Varsóban a használt lakások árai kissé alacsonyabbak a budapestiekénél – körülbelül E1,000 négyzetméterenként –, ami a fennmaradt régi lakások alacsonyabb színvonalát tükrözi. A lakáspiaci helyzet Vilniusban kissé eltérő, hiszen a város jóval kisebb, mint Budapest vagy Varsó, és a befektetők is később fedezték fel. Mindemellett az utóbbi években az árak drasztikusan megugrottak. A felsorolásban Bulgária a kakukktojás, hiszen még nem EU tagállam, bár a csatlakozást 2007-re tervezik. Sok befektető úgy tekint Bulgáriára, mint egy aranybányára.
KONIUNKTURA NA RYNKU NIERUCHOMOŚCI
Rynek nieruchomości w Budapeszcie, Warszawie, Wilnie i Sofii – miastach obsługiwanych przez Wizz Air – od kilku już lat budzi zainteresowanie zagranicą. Ostatnio, w związku z dużą ilością nowego budownictwa, średnia cena mieszkań w stolicy Węgier ustabilizowała się. W ciągu najbliższego roku ceny powinny wzrosnąc tylko o wartość inflacji. W Warszawie średnie ceny mieszkań na rynku wtórnym są nieco niższe od tych w Budapeszcie o około 1,000 euro za m2 (stare budownictwo jest tu jakościowo nieco gorsze). Rynek mieszkaniowy w Wilnie, które jest mniejsze od Budapesztu i Warszawy, wygląda zupełnie inaczej. Zagraniczni kupcy mniej się nim interesują. Jednakowoż w ostatnich latach ceny mieszkań również bardzo tutaj wzrosły. Bułgaria to zupełnie inna hisoria. Nie jest jeszcze członkiem Unii Europejskiej, chociaż ma nim zostać w 2007 r. Wielu inwestorów wiąże więc z tym rynkiem duże nadzieje.
