Budapest has undergone major physical change and transformation since the 1980s. Much of this change has been as a result of international investment and development of new commercial, retail and out of town shopping centres. This paper considers the extent to which Budapest has changed during Hungary's transition in the post-socialist era. In this context the paper examines changes in spatial function of business activity including expansion of CBD, and distribution of retail activity. Furthermore the research reports the findings of a programme of interviews with the different actors involved with planning, development and investment and draws from empirical research concerning the activity of international real estate investors and developers in Budapest. The research stems from an ESRC funded project that seeks to evaluate the extent to which the capital cities of central Europe have been able to attract investment in the property sector.