Transformation processes of the city center of Budapest: from historical development to the new economy

Within the confines of this paper, we aim at exploring some of the recent transformation processes of the city center of Budapest. First, a concise overview of the geographical notion of ‘city’ is provided, after which the historical formation, evolution and transformation of Budapest’s economic center is presented. Second, the intricate relationship between the new economy and city centers is outlined, followed by the presentation of the results of an empirical research focusing on the emergence and the spatiality of the new economy in the Hungarian capital’s city center. Based on the findings of the research, we argue that in Budapest, just as in other European metropolises, the first apparent signs of economic changes are manifested in the ‘city’, and they diffuse from these central areas to other (inner) parts of the city.