Budapest

Budapest
Budapest is the largest city in Hungary and the main political, cultural, financial and economic centre of the country. It was officially established in 1873 with the unification of three independent towns – Buda, Pest and Óbuda. In the late 19th centuries the development of Budapest accelerated considerably and the city became the second most important urban centre of the Austro-Hungarian Empire, next to Vienna. The current territory of the city was formed by the unification of Budapest and 23 neighbouring suburban municipalities in 1950.

Budapest is the largest city in Hungary and the main political, cultural, financial and economic centre of the country. It was officially established in 1873 with the unification of three independent towns – Buda, Pest and Óbuda. In the late 19th centuries the development of Budapest accelerated considerably and the city became the second most important urban centre of the Austro-Hungarian Empire, after Vienna. The current territory of the city was formed by the unification of Budapest and 23 neighbouring suburban municipalities in 1950.

Nowadays, Budapest is one of the most important nodes of economic development in Central and Eastern Europe. Several transnational companies (e.g., GE, IBM, Exxon-Mobil, Nokia, PricewaterhouseCoopers, TATA) as well as European institutions (European Institute of Innovation and Technology, Joint Technical Secretaries of Cross-border Cooperation Programmes) have regional headquarters here. Budapest is the most liveable Eastern European city according to the quality of life index of the Economist Intelligence Unit (EIU) and the second highest ranked city (after Prague) on the ‘Innovation Cities’ Top 100 index.

The importance of Budapest is well illustrated by the fact that 38% of the Hungarian GDP, 28% of its enterprises and 24% of its total investments are concentrated in the city (2011 data). However, taking into account the city’s socio-economic power, it is often called the ‘waterhead’ or ‘swollen head’ of Hungary, which phenomenon is a considerable challenges for regional planning.

Józsefváros (the 8th district) is one of the 23 independent district municipalities in Budapest. It is part of the historical inner-city area and its current physical layout was mainly formed during the late 19th century urban boom. Regarding its spatial structure, Józsefváros can be divided into 3 main parts including 11 neighbourhoods (called quarters; ‘negyed’ in Hungarian) with individual characteristics. Despite its relatively small territory, the 8th district is socially and culturally one of the most diverse parts of Budapest and it has a heterogeneous urban landscape as well. The Inner-Józsefváros – called Palace Quarter – comprises high quality residential buildings – belonging to the downtown of Budapest – built for the aristocrats in the late 19th century as well as several nation-wide institutions such as the National Museum, university buildings and the headquarter of the Hungarian Radio.

Middle-Józsefváros is predominantly a residential area with a mix of old, dilapidated housing stock and pre-fab housing estates. Local residents were traditionally workers, craftsmen and lower class people. The Middle-Józsefváros area has been the ‘loser’ in most phases of socio-economic transformation in the 20th century. The central part of the district has had the worst reputation during the last decades because of its numerous social problems such as poverty, crime, prostitution and other anti-social behaviour. The share of the Roma (Gypsy) population is around 50% of the total population in some parts of the neighbourhood (e.g. Magdolna Quarter). Several integrated urban renewal programmes were launched after the turn of the century in order to cope with the problems of the deprived areas.

The third part, Outer-Józsefváros is diverse regarding its land-use since it has brown-fields (e.g. large railway stations, industrial sites) on the one hand, and elegant low-rise residential areas with extended green spaces on the other. The share of public housing is relatively high (15% of the total dwelling stock) compared to Budapest (5%) and the national average (3%). One of the largest cemeteries of Budapest is also located in this part of the district. Józsefváros and particularly its central neighbourhoods have been the destination for immigrants from other parts of the country and more recently from abroad (China, Vietnam etc.) as well.

District Images

Key Statistics

HUNGARY Hungary Budapest Józsefváros
Area (km2) 93 036 525 6.85
Population [1] 9 937 628 1 729 040 76.25
Income (HUF per employee) [3] 144.94 188 564 No data
Income tax (HUF per capita) [4] No data 250 705 164 747
Unemployment** [5] 446.310 (6.75%) 41.527 (3.82%) 3.075 (6.21%)
Own-occupied housing [6] 96.33% 93.33% 84.91%
Average house price (HUF per m2) [7] 128 245 203
Highest level of education completed* [2] Hungary Budapest Józsefváros
Primary education; lower secondary education 56.92% 36.29% 37.01%
Middle vocational education; high school 27.54% 34.83% 35.95%
Higher vocational education; tertiary education 15.54% 28.88% 27.04%
Largest ethnic groups [9] Hungary Budapest Józsefváros
Hungarian 80.15% 78.25% 77.05%
Gypsy 2.98% 1.09% 4.00%
German 1.27% 1.02% 1.31%
Other domestic nationalities** 1.10% 1.24% 2.03%
Chinese 0.06% 0.26% 0.72%
Arabic 0.04% 0.13% 0.39%
Russian 0.06% 0.17% 0.33%
Vietnamese 0.03% 0.14% 0.30%
Others 0.27% 0.78% 2.83%
No answer 14.03% 16.09% 11.04%
Age Groups [8]

Budapest 0-14

Budapest 15-24

Budapest 25-44

Budapest 45-64

Budapest 65+


NOTES

* 7 and over 7-year-old population by the highest level of education and sex.

** The ratio of registered jobseekers comparing to the working-age population (15-59 years).
*** Domestic nationalities: Armenian, Bulgarian, Croatian, Greek, Polish, Romanian, Russian, Serbian, Slovenian, Slovakian, Ukrainian.

SOURCES
1. Population Census 2011, Hungarian Central Statistical Office, 2011
2. Population Census 2011. Hungarian Central Statistical Office, 2011
3. Income status, 2011. In: Statistical Mirror Vol. 2013/15, Hungarian Central Statistical Office, 2013
4. Income tax data. Spatial Information System (TEIR) / National Tax and Customs Administration of Hungary, 2011
5. Summary Report November 2013. National Employment Service, 2013
6. Population Census 2011. Hungarian Central Statistical Office, 2011
7. Real estate offer prices of www.otthonterkep.hu provided by the FHB Land Credit and Mortgage Bank Company, Dec. 2013
8. Population Census 2011. Hungarian Central Statistical Office, 2011
9. Population Census 2011. Hungarian Central Statistical Office, 2011

Budapest Reports

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Critical analysis of existing urban policy programmes and discourses in the case study city. Includes overview of political systems and governance structures, key shifts in national discourses, and approaches to policy over migration, citizenship, and diversity.

Governance Arrangements and Initiatives

Analysis of local governance arrangements and initiatives in the case study area that target social cohesion, social mobility and economic performance.

Work Package 5 Initiatives

Fieldwork Inhabitants

Analysis of how urban diversity and policies and arrangements affect different population groups living in cities in terms of social cohesion and social mobility.

Fieldwork Entrepreneurs

Analysis of how urban diversity and policies and arrangements with respect to urban diversity affect different population groups living in cities in terms of economic performance and to clarify who (which social groups) profit and how they profit

Budapest News

Budapest City Book

Budapest

Budapest, the focus of this book, is a diverse city with a population of about 1.7 million inhabitants. It is the largest city in Hungary and also one of the most important economic, political and