District VIII also known as Józsefváros (Joseph's Town) which has largely been untouched for a hundred years is tipped as the kind of olde-world bohemian area that will be the in-place for young people.
The centrally located area is crammed with small apartments, many of which have no indoor toilets and fell into decline at the height of the Communist years. But now they have the potential to become bijou pied-a-terres.
The centrepiece of the regeneration will be the widest pedestrian street in the city connecting up with Orczy Park, one of the largest gardens in Budapest with over 100 species of trees.
'This district was well known as a slum. Investors who participate early in this ground-breaking urban rehabilitation will be rewarded in years to come as District VIII is put back on the map, but this time for the right reasons,' said Adam Godwin, of Dream Homes WorldWide .
'The focal point is a pedestrian Promenade which will have a Parisian vibe with bars, shops, offices, hotels, entertainment, restaurants and a 1,500m² Wellness Centre with gymnasium, swimming pool and beauty salon. Traffic will be redirected underground into 5,000 new parking spaces leaving the air fresh and unpolluted,' he added.
The €405 million project is Budapest's, and indeed Central Europe's, biggest regeneration project and is due for completion by 2010.
Of the 2,500 apartments within the project area, 1,100 are beyond repair and have or will be bulldozed whilst the remaining 1,400 are to be renovated.
Budapest is already popular with young people as a short break destination and increase is continuing to grow. Other major infrastructure work adds to its appeal. The city's new Metro 4 underground route began construction in 2006 and the first section is expected to be ready in 2009.
