Proposed “congestion charge” seen raising Budapest property prices

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Once the real estate market recovers, property prices in downtown Budapest could rise at an above-average rate with the introduction of a congestion charge, napi.hu reports, citing BDO Magyarország.

Budapest plans to levy a charge on motorists entering the downtown area in accordance with an agreement signed with the EU in 2009 in return for funding for the Metro 4 project.

According to existing plans for the scheme, five central districts will fall entirely within a controlled or “cordon” area subject to fees, while another five or six districts will partially fall within the zone.

property: residential

Damian Hockney, London, UK

I am not sure of how anyone can arrive at the extraordinary idea that placing restrictions on people through extra taxes will increase the value of property. There is no data which even vaguely validates this. It is just rather bad propaganda to make people accept something which will damage them and force them to pay more to the state. In London, the C-Charge has notably had a bad impact on business and wealth and delivered none of the advantages promised. Business registrations in the charging zone fell dramatically after the imposition of the zone, and rose outside of it. There is no evidence in London at all of ‘less smog’ and all of these other things which are being promised. I presume those who peddle this misinformation do not refer to the facts regarding London because the facts and truths are inconvenient.