Location
The Velezda Park residential development merges the concept of a relaxed stylish living ambiance with bustling modern business life, in the new fashionable quarter on the Buda side of the city.
The project will be constructed in Budapest's significantly up and coming 11th District, at the junction of Barazda and Szeremi Streets. The historically somewhat industrial zone of the up-market Buda side is in the process of being entirely overhauled and redeveloped as the fashionable hub for the late 20s and early 30s young office workers and professionals.
The area gives access to the sought after Buda side at affordable prices and is moments from the headquarters of a multitude of multinationals' offices in Budapest. Also minutes from the development are the Ujbuda Center, translating to the new Buda Shopping Centre, which was completed in 2007, and the buildings of imposing and trendy Office Gardens Business Park development which is currently in the process of delivery. Within 5 minutes of the building is Budapest's tech office centre, named INFO-PARK, where the headquarters of IBM, HP and Microsoft and other software giants can be found, as well as the Technology Campus of ELTE, Budapest's most significant University.
While the immediate surrounds of the buildings maintain a leafy green park atmosphere, the ground floor of the development is set to offer shopping and lifestyle facilities and cafes.
Hungary's capital city is home to approximately 2,000,000 residents and the old communism dwellings are now much less desirable and occupants are moving out to developments such as this one.
The Developer
EI Holding Kft. was founded in July 2004; its major owner is MKB Bank Zrt, the third biggest commercial bank in Hungary. The residential property division, which is the core activity of the company, is currently involved in the development of approximately 5,500 residential units in total. These residential projects are in various stages of development. In addition, the company is in negotiations throughout the CEE region to purchase land for the development of several thousand additional residential units.
Intercolony is the European division of American Colony Ltd., an Israeli real estate developer company that grew from the fine traditions of three generations of architects. Its two owners are the child and grandchild of people who helped shape a country, building many of its edifices and constructing some of its most important projects. The company was established in 2005 and already has 5 residential projects finished in Israel with 25,000 sqm residential space and another 1,000 unit residential project under construction at the present. Also, the company has projects all over Europe; approximately 30,000 units in Romania, Cyprus, Ukraine and in Hungary too.
Now these two companies are to put their international experience together to create a real value for their buyers, Velezda Park in Budapest.
Ground breaking
Mid 2008
Completion Date
4th Quarter 2009
Number and type of units
Only 15 units released to the investor market as local Hungarian market buying most of the remaining units. Studios to 3-Bedroom penthouses available.
Price range studio apartments from 55,710 + 6,600 Euros.
Apartments from 55,710 Euros (+ compulsary minimum 6,600 Euros parking space) - price includes already 10% discount.
Deposit 20% in total. Entry level cash input at £9,500.
Closing Costs
Fixed legal costs of 1,600 Euros paid with deposit.
Finance available
Up to 80% of the price is available with a Swiss Franc mortgage with a 5-year interest only period available. Interest is payable at around 5.5% per annum. Please note that these figures are for example purposes only and are subject to change without notice
Projected Capital Growth
Strong. Over the last three years prices have been appreciating at over 15% per annum. With a pre-release development such as this, we anticipate 20-30% capital growth per annum.
Projected Rental Yield
8%+. This is based upon similar developments in the area currently renting exceptionally fast. Our management company rented 80 units in just 7 weeks on long term rentals.
Monthly service charge
Most developments are approximately 1 Euro per square metre per month (to be confirmed).
Ownership Structure
Freehold.
