Passionate, proud people, hearty food and a capital city that is as prosperous as it is historical; these are just some of the things you can expect from a trip to Hungary.

While there are hints of its Communist legacy all over the country, and nowhere more so than the outskirts of Budapest, Hungary has managed to pull itself into the 21st century with some measure of success.

The property buying process in Hungary is simple and straightforward, though legal representation is recommended, the land registry is well established and the legal framework means it is unlikely homebuyers will face much confusion.

The arrival of low cost airlines like Ryanair and Easyjet to the capital of Hungary, Budapest, has created a surge of British holidaymakers choosing the country for city break tours. Economically, Hungary has benefited from 2004 EU accession, its Gross Domestic Product (GDP) rose by 4.2 per cent in the first quarter of 2004, and is predicted by The Economist to continue to grow by a further 4.2 per cent during 2007.

The private sector accounts for about 80 per cent of GDP, the largest in the region. The government of Hungary has stated that it plans to meet the criteria necessary for Euro adoption in 2008, though in reality it could take longer due to some public finance problems in the country.

Rental property in Hungary is almost entirely in the residential and long-term sectors in Budapest, meaning there is a market all year round. As for buying property in Hungary, individuals can buy without setting up a company, and most property is sold freehold, as leasehold property has a notorious reputation for accruing complications after purchase.

While the property market in Budapest is considered by most to be significantly more of an investment opportunity than any other area in Hungary, the Lake Balaton region deserves a mention as a potential holiday home hotspot between June until the end of August - especially as Ryanair now fly there.

Hungary, and more specifically, Budapest, is patchy in the quality of property on offer, but has proven popular as an emerging property market, and as tourism increases prices are likely to continue following suit.

Hungary factfile:
Timezone: GMT+1–2
Exchange rate: GBP1=HUF405.33 (HiFX, July06)
Mortgage availability: Moderate
Deposit required: 40%
Agent's fees: 0–5% legal fees: 1.5%
Capital gains tax: 20% (Reduces after six years)
Peak letting season: All year
Average daily temps celcius (Jan–Dec):
-1, 0, 5, 11, 16, 19, 21, 20, 16, 11, 4, 0, 10 (Budapest) 
Average property prices: 1-bed apart: £67,103; 2-bed apart: £97,102; 3-bed house: £142,480

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Article published in August 2006