From 31st October, Ryanair will operate up to four flights each week from the UK destinations of Liverpool and Glasgow. This will take the number of Ryanair budget routes flying into the Hungarian capital up to five, including flights from East Midlands, Bristol, Bremen and now Liverpool and Glasgow.

According to Caroline Hollingworth of UK-based overseas property specialists Hollingworth and Associates, the new flights will boost Hungary property investment around Budapest airport. "The focus for Hungary property investors is now clearly on the suburbs," she says. "Property prices are rising at around 15 to 20 per cent per annum, and driven by local direct investment rather than by foreigners, while rental yields are achieving on average between 6 to 8 per cent. This figure is expected to improve as the areas develop."

Hollingworth and Associates is currently offering one-, two- and three-bedroom apartments in the Holmi Residence 1.5 kilometres from the International Airport; penthouses are available from under £40,000.

It isn't just Hollingworth who is advising on the benefits of investing in Hungary's capital. "Traditional investment has often focused on happy holidaymakers returning from resorts," comments Valeria White, Managing Director of Access Hungary. "But typically infrastructure in these areas has to catch up with the development and surrounding poverty is a concern. In Hungary's capital, Budapest, for example, it is growing indigenous wealth that drives the market and locals who will be most likely to buy your Hungary property from you in the future. Every investor should consider their exit strategy – who are they going to sell to? You shouldn't rely on it being another overseas buyer."

According to White, investors should be looking at new-build property in Hungary, which tends to be more attractive to local buyers. "Eye-catching historical buildings are attractive but, while buy-to-renovate presents an excellent opportunity to add value, it is a specialist field," she says. "Importantly, new build is often more attractive to Hungarian buyers. City centre wealth boosts the market, so that vital exit strategy is not dependent on continuing outside investment."

If you are looking for new-build city centre property with good investment, then Access Hungary is currently offering opportunities to invest in the Corvin Promenade. This area is undergoing large-scale regeneration, and prices start at £35,000 for a studio apartment.

Fancy taking a gamble on Hungary property outside the capital? Then, according to Dream Homes Worldwide you couldn't do better than to consider the city of Gyor. Flanking one of the main arterial routes in central Europe, the city is within easy reach of Vienna, Budapest and Bratislava. With demand from university students and workers alike, the rental market in Gyor is also thriving.

Dream Homes Worldwide is now marketing the Amaryllis Garden development (pictured) in a large housing community in Gyor. The development comprises 81 studio and one-bedroom apartments, while facilities include a children's play area, underground parking and lift to shops, bars and restaurants at street level. Prices start at £37,400 for a studio apartment, with completion scheduled for mid 2007.

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Article first published 13 September 2007