Hungary borders Slovakia, Ukraine, Romania, Croatia, Serbia, Slovenia and Austria, and Budapest is located in the northern centre of the country on the banks of the Danube.

What's so special about it?

A sister city of Dublin since 2006, Budapest was up until 1873 two cities on either side of the Danube . . . Buda and Pest. Buda is older, with cobbled stones and medieval architecture, while Pest is busy and modern and is the city's commercial focal point.

While only about 20% of Hungarians live here the city receives 70% of foreign investment, amounting to over 20 billion since 1989. Low-cost airlines have increased tourism and last year 8.3 million people passed through the airport.

Best kept secrets:

Last year Budapest had some of its worst riots when the prime minister admitted he had lied to voters about the state of the economy. Unwilling to upset the electorate, the government has failed to take the necessary decisions and while it is spending heavily on infrastructural developments, it has run up a massive deficit of 10% of its GDP, which is three times the level set for inclusion into the euro. The economy has grown out of its Communist roots as 90% is now generated from the private sector and companies such as Tesco, Vodafone, and Hewlett Packard have set up. In 2005 the British Aviation Authority bought Budapest's Ferihegy airport.

Who lives here?

Famous Budapestians include composer Zoltan Kodaly, American politician Tom Lantos, escape artist Harry Houdini and actress Zsa Zsa Gabor. Famous faces seen in the city include Steven Spielberg, Giorgio Armani, Sophia Loren, Jeremy Irons, Microsoft Co-founder Paul Allen, Eric Bana and Jose Carreras.

What's the property market like?

Property costs about four times less than Dublin and has one of the lowest cost-of-living rates in Europe. Savills found that Hungary had high owner occupancy and that capital appreciation was highest among new buildings built after 1990. However the economy has slumped in recent times and the Global Property Guide (GPG) reports that in the new-build sector the number of construction permits declined in 2005 and 2006 by about 31% and the price of new condominiums fell by nearly 3%. Matt English, managing director of Christies Estates, believes what is keeping Hungary popular is the fact that it is cheaper than other European countries and when the economy picks up, in about five years, growth will result. Currencies Direct, who process money going abroad out of the UK, report that Hungary is the sixth most popular location in Europe, up four places since last year and above Poland and Romania.

How do you go about buying property?

Among the local media the Budapest Business Journal or the Budapest Sun. In the last five years Irish buyers have entered the market and many got burnt by unscrupulous agents who sold them overpriced properties in areas they could then not sell or rent. Therefore, source agents from the Hungarian Real Estate Association in Budapest or through the AIPP or FOPDAC. As it is part of the EU, foreigners can buy in Budapest but must get approval of the Administrative Office first and can only buy up to two apartments.

However, many people buy through a company which means you don't need approval and you can offset expenses, but it can have tax implications back home. It costs approximately 1,000 to set up the company.

Where are the best places to buy?

Central Budapest has become expensive for locals so many are moving to the outer districts. Matt English says that in Buda the upmarket areas are Districts 1, 2 & 3, while in Pest the main business areas are Districts 5, 6 & 7, with District 8 undergoing development in recent years.

What's the rental market like?

The Holiday Lettings Trend Tracker found that among holiday renters this summer Hungary was the second fastest emerging market. English believes rental yields are about 4-6%, while the [GPG] reports a 50sq m apartment in Pest will rent for about 600 a month, while in Buda a 100sq m apartment will make about 1,100 a month.

What's the resell market like?

While Hungary has high owner occupancy, the second-hand and resale market is quite underdeveloped as many Hungarians still cannot afford to move out of the Communist style blocks they are living in.

What type of property is available?

English reports there is ongoing redevelopment of historic city centre buildings, adding two floors, revamping the interiors and cleaning the exteriors, therefore providing the city with a facelift and developing centrally-located modern apartments.

Average property prices?

The Buyers Association reports that the average price for a two-bed apartment is 140,521. However studios can be snapped up for 42,000 and many Irish are investing from about 63,000.

What are the tax breaks with Ireland?

Hungary and Ireland do have a double taxation agreement. Tax rate on rental income ranges from 18- 40%, companies tax is 16%, building tax is up to 3%, capital gains tax is 25% and purchase costs range from 2.61 to 7.85%.

USEFUL CONTACTS

Embassy of Ireland in Budapest: 01-301 4960;

irishembassy@irishembassy. hu Embassy of the Republic of Hungary in Dublin:

01-661 2902; hungarian. embassy@eircom. net Budapest Business Journal: www. bbj. hu The Budapest Sun: www. budapestsun. com Hungarian Real Estate Association: 00361-336 0072 / www. maisz. hu Bank of Hungary: www. mnb. hu Hungarian Central Statistical Of"ce:

http: //portal. ksh. hu Invest in Hungary: www. itdh. hu Tourism in Hungary: www. hungarytourism. hu The Global Property Guide:

www. globalpropertyguide. com Association of International Property Professionals: www. aipp. org. uk Federation of Overseas Property Developers, Agents and Consultants: www. fopdac. com MyOverseasProperty: www. myoverseasproperty. ie OverseasCafe: www. overseascafe. com The Economist (Hungary):

www. economist. com/countries/hungary/ FAST FACTS Getting there: Ryanair and Aer Lingus "y direct from Dublin Area: 525.16sq km Population: 1,697,343 Currency: Forint ( 1.00 = 250.400 HUF) Weather: Temperatures range from -4degreesC to 27degreesC Transport: Ferihegy International Airport has three terminals, is being invested in and is getting a rail link to the city centre. A motorway is being built and a fourth metro link. A hydrofoil service is available in the summer up the Danube to Vienna. Budapest also has a good night-time transport service.

Going out: Great sights are Royal Palace, Buda Castle, the Danube Promenade and Andrassy Avenue to see the State Opera House, the Pest Broadway and the House of Terror. In Buda go to the A38 boat, an old Ukranian ship turned into a club and in Pest go to Morrisons, an underground club.

Eating Out: Local dishes are porkolt, a stew with lots of onions and halaszle, a soup that varies from area to area. There are many restaurants but avoid the expensive touristy ones. Coffee houses are popular and you could even try Kosher food.

Shopping: Malls include WestEnd City Center, one of the biggest in this area of Europe and Andrassy Avenue has many impressive branded stores.