Budapest's renowned Central European University has finally completed a new wing - the first phase of an enourmous development for expanding in the next few years, the new building in Nador street is now buzzing with life. 

While Budapest, the capital of Hungary, may not be the first city that tourists heading to Europe put on their itineraries, it's becoming a new magnet for global real estate investors. Budapest is not as saturated with buyers and sellers as cities that are more on the beaten track. That's only part of its appeal, however. The "Pearl of the Danube" is a world class location with assets that outshine more high profile markets. The advantages to buying property there may never be as ideal.

Hungary’s capital city of Budapest continues to attract foreign investors seeking high-end apartments. Professional real estate investors see the boom in tourism and now seek to rent the properties they purchase. This boom has led to a rise in real estate purchase transactions and helped stabilize the housing market in Budapest. Many risk-averse foreign investors now consider Budapest as their preferred investment destination.

A new wave of foreign property investors has descended on Budapest, the capital city of Hungary. According to a study recently released by estate agency Otthon Centrum, the first half of 2015 saw an astonishing increase of property transactions in the city. In fact, the total figure was ultimately revealed to be 40 percent higher than the final figure that was reported for the previous year. In a word, the property market for foreign investors in Budapest is booming at a rate that was frankly inconceivable even a few short years ago.

When Viktor Balint and Lazslo Katona bought their first apartment in Budapest as an investment, they knew they were onto something big.

“Tourists from western Europe come here and they have a laughing fit because they can rent an apartment for so little,” Katona told Bloomberg.com. “We’re also smiling, looking at the profit.”

Housing prices in Hungary have rose by a stunning 21% in  2014 and 2015, much faster than the neighborhing countries, but according a report published by the Hungarian National Bank, this is not excessive growth. 

According to the Hungarian Central Stastical Office, the number of construction permits and simple declaration of  new residential buildings have doubled in the first quarter of year compared to the same period in 2015. This further proves the outstanding optimism Hungarians have about the property market. 

According to a survey taken in January 2016 by GKI Economic Research Company, both Hungarian and Budapest real estate market indices were up by 3 points this quarter, representing a 35-quarter peak: 2007 was the last time the index was this high. 

Construction works have been going for a while on a large area behind the so-called “Whale”, and the Central Market Hall in the 9^th District.

The municipality of the district has recently released the architectural design plans regarding the area, which are to be done at the end of this summer. 

Our property of the month in January is a wonderful apartment overlooking the iconic and gorgeous St. Stephen's Basilica that is located right in the center of town, perfect for those wanting to be in the center of it all or within walking distance to main features that the city has to offer.

It was announced on December 11^th along with 46 other cities from 33 countries that Budapest has been crowned by the UNESCO Creativity City Network, as one of the world's most creative cities, under the category of Design.

Most certainly the biggest news this week in real estate was Hungarian Parliament passing the bill to reduce the currently 27% VAT on construction on new residential properties to 5% from 1^st January, 2016.