In this article, we'll look at the best districts of Budapest and break down where it's best to live, and which areas investors should pay attention to.
What makes Budapest attractive for an investor and an ordinary person
Budapest is the capital and largest city of Hungary. The country is located in Central Europe, which gives it a certain strategic and economic advantage.
Budapest is an old, multinational city with a rich history, an established foreign community, and, at the same time, modern and convenient infrastructure.
Despite all its advantages, property prices in the city are still lower than in other European countries. At the same time, in recent years there has been steady demand for housing, and as a result, price growth of around 8-10%.
On top of this, the country has recently started attracting more and more tourists, who primarily visit the capital first. This means that demand for real estate, particularly for rentals, is only set to keep growing going forward. This makes buying an apartment in Budapest an attractive proposition from an investment standpoint.
The city's administrative divisions
The Danube River divides Budapest into 2 main parts - the hilly Buda and the flat Pest, which in turn are divided into 23 separate districts. For convenience, all districts are denoted with Roman numerals - I, II, V, VI, VII and so on. They are also loosely grouped into various categories, such as central, tourist, peripheral, and others.
Let's take a closer look at Budapest's districts, their features, and their appeal from a living and investment standpoint.
Property features in Buda
Buda was originally a separate city, and today is the western part of the Hungarian capital, located on the right bank of the Danube. Buda is a quiet, historic and respectable part of the city, divided into 6 separate districts. All the city's main landmarks are located here, as well as the best restaurants, museums and other cultural sites.
District I is the old town, also known as the "Castle District" because of the Buda Castle located here. This district is home to all the most popular tourist spots - the Royal Palace, the National Gallery, the History Museum, Fisherman's Bastion and others. That's why it's often called a tourist mecca.
Despite the uniqueness and other merits of this Budapest district, buying property here is unlikely to be considered an optimal decision.
Many buildings have the status of historic monuments, which places significant restrictions on their use. For example, to carry out a simple renovation or reconfiguration of an apartment, the owner has to obtain permission from the local authorities.
You also need to keep in mind that traffic is restricted within the district. Only local residents and guests of the Hilton Hotel are allowed to use private cars. Everyone else has to rely on public transport and taxis.
On top of all this, there are very few properties for sale, and the average price even for a small apartment starts from EUR 130,000.
District II is a popular district among tourists, located not far from the city's historic center. Its main feature is an abundance of greenery - all kinds of parks, groves, forests and other places to enjoy nature. The infrastructure is well developed, and there are all the conditions for comfortable living: schools, shopping centers, cinemas, restaurants.
Property in Budapest's District II is relatively inexpensive. Prices for small apartments start from around EUR 100,000, and for houses - from EUR 200,000.
District III is the oldest district of Budapest, which is being actively rebuilt and changed today. New venues keep opening, houses are being built, and various concerts and exhibitions are held, which certainly attracts a lot of young people.
In the most comfortable and developed neighborhoods - Romai and Csillaghegy - apartment prices start from EUR 90,000. In the Bekasmegyer neighborhood there is significantly cheaper property - from EUR 25,000-30,000, but keep in mind these are simple, gray multi-story blocks.
District XI is the most populous district, home to a large number of university campuses and, accordingly, a lot of students. The district has well-developed transport infrastructure and everything needed for comfortable living. The most popular spots are the Sashegy and Sasad neighborhoods, as well as the famous Gellert Hill. Property prices here start from EUR 150,000.
District XII is an upscale district with plenty of forests, greenery and vineyards. This is where the president, prime minister and other high-ranking officials of the country live.
Keep in mind that the district has a poor public transport system, so having a personal vehicle is highly advisable. Property here is expensive, with some of the highest prices in the entire city - an average house will cost EUR 300,000, and the price of a large mansion can far exceed a million EUR.
District XXII is a well-developed and well-maintained, yet still fairly affordable district of Budapest. It has everything needed for daily life, plus numerous museums, theaters, restaurants and other entertainment venues.
Apartment prices start from EUR 30,000, and houses - from EUR 150,000. There are also more expensive options - old mansions that once belonged to wealthy merchants.
It's impossible to say definitively which district of Budapest is best to live in, since it all depends on your needs, means and preferences. District I is suited exclusively to history enthusiasts prepared to accept high prices and restrictions. Families with children should look at Districts XI, XII and XXII, young people at III and XI, and well-off investors at II and XI.
Property features in Pest
Pest is the busy and dynamic part of the city, home to major Hungarian and international companies, as well as a large number of shops, restaurants and other places to relax.
Pest is divided into 17 districts, but it's worth looking at the main ones:
District V is a small but very diverse and vibrant district of the city. It's home to landmarks such as the Parliament building, St. Stephen's Basilica, Liberty Square and others.
Property prices here are considered the highest in the city. For example, the price of a small apartment overlooking Liberty Square can reach EUR 350,000.
A significant share of Budapest's rental apartments are located precisely in this district, which is why it's well suited for buying with investment purposes in mind.
District VI is the cultural center of Budapest, home to a large number of theaters and museums. It also has expensive shops, restaurants and hotels. Property here cannot be called cheap - average apartment prices range from EUR 170,000 to 230,000.
District VII is a small, densely populated district with a large number of synagogues. Until recently it was poor and rundown, but changes in recent years have transformed it significantly. Today it has many bars, nightclubs and other venues that attract tourists and young people.
Residential property in this district mostly consists of apartments; private houses are rare. Apartment prices range from EUR 50,000 to 170,000.
District VIII used to be considered a fairly crime-ridden, dangerous and unreliable district of Budapest. Today the situation has changed dramatically, and experts call it one of the most promising districts in terms of property-price growth. The district is now actively developing and being upgraded, so it has everything needed for a comfortable life. In recent years, housing prices have risen substantially, so it can no longer be called cheap. On average, an apartment costs around EUR 100,000.
District IX is attractive both for living and for investment. It's home to Budapest's main universities, so a lot of students live in the area. On the main street, Raday, there are also plenty of cafes, restaurants, clubs, art galleries and other venues.
Property prices are mid-range - an apartment in a good building will cost around EUR 100,000-170,000.
District XIII is a large and extremely diverse neighborhood. It has everything needed for daily life and leisure: schools, universities, hospitals, entertainment venues. Residential property is also represented by different options: from budget panel high-rises with apartments up to EUR 100,000, to upscale homes with a river view.
As with Buda, Pest's districts vary widely in terms of conditions and standard of living. Families with children should look at Districts VIII, IX and XIII, and well-off people and investors at V, VI, VII and IX.
Outlying districts of the city
Outlying districts are considered the quietest and calmest, and thanks to the well-developed public transport system, getting from them to the city center is not a problem.
Property prices on the outskirts are significantly lower than in the historic or cultural center, but you can still live comfortably here or rent such housing out. For example, a decent apartment in a typical residential neighborhood can quite realistically be found for EUR 40,000-50,000.
Affordable housing is mostly found in Districts XVI, XVIII, XIX, XX and XXIII. For investment and rental purposes, look at Districts IV and XXI.
Conclusion
In Budapest, every district of the city has its own unique features, which must be taken into account when choosing a place to buy property.
In general, the main districts can be divided as follows:
- IX, X, XIII, XIV, XV, XVI, XX - have well-developed infrastructure and good transport accessibility, making them ideal for families with children.
- V, VII, VIII, IX - many educational institutions, entertainment venues, cafes and restaurants, which is especially important for young people.
- IV, V, VII, VIII, IX, XXI - many apartments here are rented out, making these districts promising from an investment standpoint.
- IV, XV, XVI, XVII, XVIII, XXIII - districts with affordable property, worth considering if your housing budget is limited.
If you want to buy property in Budapest but don't know what to choose or how to handle the paperwork correctly, reach out to MIRBEZVIZ for help. For more than 6 years we have successfully provided services for acquiring property in Europe and are ready to help find the best offer on the market.
Program Hungary Residency →Questions about this article?
We'll look at your situation and suggest the next step.
