A small Hungarian town located along its border with Romania has experienced a surge in the property sector and resort business since Romania joined Europe's visa-free Schengen zone at the beginning of the year.
The historical town of Gyula in southeastern Hungary is transforming from a quiet town with a medieval castle into an investment destination and even a place where people from neighboring Romania start a new life.
One new arrival is Eva Kun, who recently purchased a home with her family after years of living on the other side of the border.
"In Romania, houses are very expensive. And here is cheaper," she said.
Her family paid just over 22,000 U.S. dollars for a fixer-upper. Back in Romania, they said that a similar property would have cost nearly four times as much.
Local real estate agent Gabor Nagy said that Gyula's market has taken off since Romania joined the European Union's border-free Schengen zone.
"Property here costs about a third of what you'd pay in Romania's big cities. Some people buy weekend homes, but others are settling here for good - partly because nearby Gyula is a popular spa town with plenty of job opportunities," he said.
Gyula, with a population of 26,000, has long been known for its thermal bath and a 15th-century brick fortress. For years, this small town lured visitors seeking rest and renewal. But these days, its appeal is broadening.
This year, real estate searches for properties in Gyula by Romanians have increased by 90 percent, with tourist numbers also surging by 50 percent.
That attention has brought investors. Louis van Balen, once a music executive, is now betting big on Gyula. He's investing 20 million U.S. dollars in a large wellness resort.
"We are here building a place with approximately four hectares in a wood area of 66 hectares. It's going to be a kind of family park," he introduced.
His vision is affordability, not extravagance. He said that a week-long stay in a furnished yurt will cost around 160 U.S. dollars.
"This is only under 140 euros a week, seven days. So it's very cheap. And we even make money. But this we specially created for the people who don't have such much money," he said.
Van Balen hopes that this price tag will attract tourists from neighboring countries and even more distant European countries such as Germany.
Hungarian border town benefits from Romania's entry into Schengen zone
