Luxurious flats sell just as fast as the average-priced ones

Ingatlanhirek.hu reports that tenants are not afraid of high rents: flats which can be rented for 1,300 euros per month don’t stay empty for longer than 1-3 months.

Due to the growing number of flats for let, the prices have grown as well: if your income is not more than 650 euros net, then you will hardly have any money left after paying your rent and bills. Despite this, 10 percent of the flat owners are renting their properties for 13 euros per square meter. On average, the monthly rent of these flats is 1,300 euros. One would assume that because of the high prices, it takes a long time to find tenants, but this is not what’s happening: based on the findings of Otthonterkep.hu, Ingatlanhirek.hu concludes that these flats are rented within 1-3 months.

Luxurious flats in Budapest can be rented usually for 850-1950 euros per month, but there are extremes of 2600 euros as well. 80-130 square meters is the average, with some flats exceeding this, measuring 200-300 square meters or even more.

The rental of luxurious flats has not changed much lately, says Nándor Mester, chief analyst at Otthontérkép. He adds that the prices of penthouses and flats with big terraces have been growing exponentially until mid-2016, pricing over the average flats, but there has been only a 5-10 percent growth during the past year. They expect the same rate in the coming two years. Since people’s interest in luxurious flats is not declining, the chances for a decrease in price are seldom.

Luxurious flats are for rent in fenced homes as well, but they take longer to be sold, cheap or average-priced flats sell faster. Investors focus more on renovating flats in the downtown area and because of this, it is expected that the number of luxurious flats in fenced homes will be significantly less than of those renovated.

45 percent of above-average flats are found in the 5^th and 6^th districts, with a rental rate of over 15 euros per square meter. This is followed by the second and first districts. Even though the number of luxurious flats is significantly less than in the already mentioned districts, the rental rate of flats in the 9^th district starts at 15 euros per square meter. A possible explanation for this is the number of fenced homes especially built for the wealthier population in the district.

The reasons why there are so many above average priced flats are the abundance of new projects, the rise in the prices of average flats and also the popularity of short-term renting. Concluding these findings, it is still a good deal to invest in flats, especially if they are in good shape and you are willing to spend some money on remodelling it into a luxurious one.

Find our other news on investments in Hungary and Budapest here.

Ce: bm

Source: ingatlanhirek.hu