Evaluating Indicators for Renewal of Properties via Gentrification in Budapest

Abstract

The aim of this paper is to evaluate the factors of gentrification based on the economical social and architectural framework in the field of maintenance management of real estates. Andrássy Avenue, announced to be a part of the UNESCO World Heritage site in 2002, is an inner-city neighbourhood in Budapest, which underwent a significant renewal process during the last two decade. This area was chosen because it represents very different types of gentrification processes. There are three research indicators defined and modelled over the statistical data. The applied modelling for evaluation of the gathered data are descriptive statistics and main factor analysis for the Shevky-Bell indices. The statistical model predicts that property market prices will rise after the architectural transformation however it will not have significant impact on the prices of the flats with bad conditions in the neighbourhood. This paper examines the renewals of the residential apartments as rent-gap or social displacement occurs. Factor points out that what motivate the young highly educated residents to move in the neighboured apartments of the Liszt Ferenc square area and what is the architectural benefit of these displacements. The facility manager of these buildings must be aware of the social profile of the owners of the individual properties inside the building to create their annual maintenance budget. The effects of rent-gap and the change in property functions are demonstrated as case study of the renewed residential palace in the under Teréz Town area of the Andrássy Avenue.

Citation

Róka-Madarász, L. and Mályusz, L. (2013), "Evaluating Indicators for Renewal of Properties via Gentrification in Budapest", Open House International, Vol. 38 No. 2, pp. 66-75. https://doi.org/10.1108/OHI-02-2013-B0007