Property
Budapest's new metro line may lead to another Váci street in Buda - ReSource
Mainly its South Buda's inhabitants who are happy about the work which has finally begun on the fourth metro line. The new transport facility will certainly influence the office market too. Just look at Váci Street, in which its value reached its greatest potential through high accessibility and, its key element, the presence of the metro.
Now, Buda's southern side will gain a similarly advantageous feature. This will be especially appreciated by those living in the 11th district but, of course, all the South Buda region will benefit from it.
Both railway and metro stops can be highly attractive for companies, even if a local bus station is taken out of the picture - says Salamon. The value increase can be felt not only in the price offer, but also in the contracts signed. For instance, one florist has already sold its premise, just off of Etele Square, to a real estate developer.
When it comes to companies looking for premises, it's too early at the time being to expect them to take the future advantages into account - Salamon notes. He thinks the explanation is that rental agreements are usually valid for three to five years, so, customers who sign them now will hardly be able to take real advantage of the new metro line.
Apart from office projects, the residential market can also be influenced by the fourth metro line. If we consider that newly built flats are sold from one to one-and-a-half years before completion, we can understand why the new momentum has already been felt on the 11th district's market.
However, this trend is not likely to increase prices any further for the time being, as sellers have already calculated and added the planned metro project to their prices. Still, by all means, demand will grow due to the new transport facility and property owners in the area can make sales in less time and with fewer discounts.
Salamon believes the new metro line will have a remarkable effect mainly on the sales of flats and building sites. Also real estate developers will take this into account when they design their next project and there are many entrepreneurs who have taken a look at the area's pool of construction sites looking for the proper location for their future projects.
Available sites will certainly gain considerable value in the near future but it's hard to say to what extent. That depends on many other factors in addition to the metro project. For instance, the value of an industrial site currently not under regulation may even multiply several times over while some areas expect only a minimal gain on the market average.
Now, Buda's southern side will gain a similarly advantageous feature. This will be especially appreciated by those living in the 11th district but, of course, all the South Buda region will benefit from it.
The effect can be felt already.
The effect of the metro 4 project can already be felt by the local office market - Adorján Salamon, CEO of Eston International told ReSource. Salamon thinks it is not a new trend for developers to take underground transport into account, as it has made specific locations more valuable throughout past years. In this case, it is specifically the Etele Square vicinity that will grow in popularity due to the new transport development and this is not only related to the new metro line but also to the planned choice of route. Both railway and metro stops can be highly attractive for companies, even if a local bus station is taken out of the picture - says Salamon. The value increase can be felt not only in the price offer, but also in the contracts signed. For instance, one florist has already sold its premise, just off of Etele Square, to a real estate developer.
When it comes to companies looking for premises, it's too early at the time being to expect them to take the future advantages into account - Salamon notes. He thinks the explanation is that rental agreements are usually valid for three to five years, so, customers who sign them now will hardly be able to take real advantage of the new metro line.
Apart from office projects, the residential market can also be influenced by the fourth metro line. If we consider that newly built flats are sold from one to one-and-a-half years before completion, we can understand why the new momentum has already been felt on the 11th district's market.
However, this trend is not likely to increase prices any further for the time being, as sellers have already calculated and added the planned metro project to their prices. Still, by all means, demand will grow due to the new transport facility and property owners in the area can make sales in less time and with fewer discounts.
Salamon believes the new metro line will have a remarkable effect mainly on the sales of flats and building sites. Also real estate developers will take this into account when they design their next project and there are many entrepreneurs who have taken a look at the area's pool of construction sites looking for the proper location for their future projects.
Available sites will certainly gain considerable value in the near future but it's hard to say to what extent. That depends on many other factors in addition to the metro project. For instance, the value of an industrial site currently not under regulation may even multiply several times over while some areas expect only a minimal gain on the market average.
