In a prime location, just adjacent to the House of Ministers and parallel to the Hungarian Parliament, a new development is poised to make the best of Hungary’s fast-pace move into the property investment scene.

A major sign of how far Hungary has matured is the proposed bid for Budapest to host the 2016 Olympic Games. If successful the bid will bring billions of euros of investment to Hungary. A decision will be made in 2009.

In the meantime, two years on from its expansion into the EU, Hungary and in particular Budapest are continuing to thrive. National newspaper, Magya Hirlap, recently reported that prices of new housing has broken €4,000 per square metre mark claiming that "prices will soon match New York and Paris."

Annual price appreciation on property prices in Budapest is 20%.

Wages and affluence in Hungary are also continuing to increase. The gross average wage in the private sector increased almost 9% year on year in March, up from 6.3% the previous year. Unemployment remains the lowest in Central Europe at just 6%.

A number of major deals have also been announced for this year: Tesco are to open 25 new stores; Sanyo is investing €3.98m in its factory outside Budapest; and British Airports Authority recently paid €2.33 billion for a 75% stake in Budapest airport.

Now, Prestige Group, the international property development and investment company, has launched 4 Garibaldi, the €15m development in Budapest’s prestigious District V, to property investors.

4 Garibaldi is situated in a highly sought after location, adjacent to the House of Ministers and parallel to Hungarian Parliament, in the heart of the city’s embassy belt and close to the Danube. The luxury developments will appeal to the corporate rental market, including diplomats and politicians, where rental returns as high as 7% could be achieved.

Paul Coghlan, Chairman at Prestige Group, explains the opportunity available to investors: "This is the eagerly awaited final phase of 4 Garibaldi, one of the highest specification residences in Budapest."

"We’re confident that the exclusivity, location, quality of finish, and the potential target market for rentals will ensure that 4 Garibaldi is an extremely secure investment. It should hold its value and sustain its demand far more than competing properties."

Prices in 4 Garibaldi reflect the exclusiveness of the project and capital appreciation since the first phase. One-bedroom residences start at €274,000, rising to €349,000 for two-bedrooms and €589,000 for three-bedrooms. Shops and a gymnasium are proposed for the ground floor and basement. Completion is due early in 2007. There are 37 units in the development.