Rent increases accelerate in Hungary

Rents in Hungary have increased extremely rapidly in recent times. We have already read about the rate at which real estate prices have risen, and now it is time for rents to start rising rapidly.

Rapid increase in rent prices

Rents rose at an accelerating pace in May: 2.6 percent nationally and 2.5 percent in Budapest compared to the previous month, Portfolio.hu reports. In the capital, prices on offer were on average 21 percent higher than in the same period last year, with the highest increase (24 percent) in the inner districts of Pest. In May, rentals were 9.7 percent higher than the pre-pandemic peak in January 2020 nationwide and 5.8 percent higher in Budapest, according to the latest KSH-ingatlan.com rent index.

After a downturn in the year of the Covid-19 outbreak, rents have risen steadily since February 2021. Rents in May were 60 percent above the 2015 base period level nationally and 51 percent above in the capital – and 9.7 and 5.8 percent above the pre-pandemic peak in January 2020.

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Rents in Buda Hills and Pest inner districts are higher

Compared to the previous month, prices rose in all districts of the capital: most significantly – by around 3 percent – in the Buda Hills and the inner districts of Pest, while in the outer disctricts of Pest and other districts of Buda, the increase was slightly less pronounced: 1-2 percent, reports Portfolio.hu.

Over a year, rents rose by the most – 24 percent – in the inner districts of Pest and by the least – 13 percent – in the outer districts of Pest; by 19 percent in both the mountainous and other districts of Buda and by 21 percent in the transitional districts of Pest.

Average rent prices

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According to the summary of ingatlan.com, the average rent in Budapest was HUF 190 000 (EUR 482.34). The most expensive district is the II. district with an average rent of HUF 330 000 (EUR 837.71), while the V. district came second with HUF 312 000 (EUR 791.94), although the average monthly rent per square metre is higher. In the two districts with the largest supply – XI. and XIII. –, average rents were HUF 196 000 (EUR 497.52) and HUF 174 000 (EUR 441.68) respectively.

Rents in the county capitals

According to azenpenzem.hu, in the county capitals, prices range between HUF 92 500 (EUR 234.76) and HUF 150 000 (EUR 380.7). The most expensive cities are Veszprém, Debrecen and Székesfehérvár. Kaposvár, Salgótarján and Szekszárd remain among the cheapest, with average rents below HUF 100 000 (EUR 253.8).