Regional characteristics are very important to understand for a successful greenfield investment. The north-east of Hungary has the lowest cost of operations in the country. For an average of 40 working hours per week, blue-collar workers earn an average of EUR 370, while white-collar workers make an average of EUR 700 per month (both are gross salaries).

Foreign investors are very often asking about the price of land in Hungary available for industrial activities. Basically, the further you go to the east from Budapest, the lower prices you will get. The purchase price of industrial land is between EUR 14/sq.m. - EUR 18/sq.m. The rental fee of an existing industrial building is more or less the same in this region as the capital city.

Let me mention some indicative prices for public utilities in East Hungary. Electricity costs EUR 4-5/kWh/month, industrial water costs EUR 1/m3, drinking water costs EUR 0.7/m3, sewage costs EUR 2-3/m3, gas costs EUR 5-6/MJ/h. If you do greenfield investment, you will need to cover the one-time utility development fee as well, based on the required capacity.

East Hungary has the reputation of low wages, flexible and skilled workers. Recruitment of workers is easy, many are temporarily unemployed, many are commuters. Unemployment rate in the eastern region is usually higher than the national average. The M3 motorway means excellent accessibility and logistical position as well as proximity of Budapest. Investors are offered full exemption from all local taxes for 3 or 5 years, depending on the municipality.

About the author:

Csaba Hegedus is running AskCsaba.com, a business consulting firm focusing to provide a wide range of local information for foreign investors coming to Hungary.