Éva IZSÁK, Ferenc PROBÁLD, Annamária UZZOLI
Abstract. After a brief introduction describing the urban environment of Budapest, the local differences in the quality of life are characterized by means of an index derived from the broadest set of variables that are available for the 23 districts of the Hungarian capital. The concept of HDI is also adapted to the urban districts and by regressing its value against property prices, an extremely strong correlation could be revealed. Out of the components of HDI, the education level of the resident population appears to be most closely connected with the property values. By disaggregating the real estate transactions database of the years 2005 and 2006 according to street addresses in the hilly Buda districts, it is possible to assess the impact of altitude on the residential property values. The mean price related to unit floor area of the apartments reaches a peak at a height of 200 meter above sea level where favourable environmental attributes, like proximity to open space and visual amenities are coupled with prestigeous image and high status of the population. Beyond the natural endowment, the scarcity of land available for housing in the Buda Hills and high construction costs due to the physiography are also capitalised in the property values. Conclusions bearing relevance to urban planning are summarized in a SWOT analysis at the end of the paper.
Keywords: Budapest – HDI – Urban environment – Quality of life – Property prices – SWOT analysis