Rent prices skyrocket in Hungary: how long will the rise last?

Rents continued to rise in May in Hungary, according to the latest data from the KSH-ingatlan.com rent index. Nationally, the rise was 1.8 percent. Meanwhile, in Budapest, rent prices increased by 0.6 percent in just one month. On an annual basis, average rent prices went up by 15.6 and 16.5 percent respectively, according to the latest data.

Prices are still rising

In 2023, rent rises have gained momentum. However, the rate of increase is below the rate of inflation. Taking inflation into account, May rents are 11 percent below the national real rent index’s record high in August 2019, Portfolio reports.

The rental market has also seen an increase in supply, which can be seen as a prelude to the summer season, Portfolio explains. In mid-June, tenants in Budapest and nationwide had 14-18 percent more apartments for rent to choose from. The national rental supply consists of more than 11,800 apartments and houses for rent. According to an expert from ingatlan.com, if the supply growth persists, it could put a brake on rent increases.

Rent prices in Budapest

According to ingatlan.com, the average rent for apartments advertised by owners in Budapest in mid-June was HUF 230,000 (EUR 615,49). The highest rents were in Districts 2 and 5. There, apartments were offered for HUF 350-350,000 (EUR 936,84).

The average rent was HUF 225,000 (EUR 602,09) in District 11 and HUF 240,000 (EUR 642,36) in District 13, which are the most popular and the neighbourhoods with the highest supply. Meanwhile, the cheapest districts include Districts 17, 21 and 23, where apartments were offered to tenants for HUF 150-155,000 (EUR 401,47-414,88).

Rent prices across the country

The average rent in the county seats is HUF 130,000 (EUR 347,97). However, there are significant differences. Veszprém is the most expensive city with a rent of HUF 167,000 (EUR 447). It is followed by Székesfehérvár, Debrecen and Tatabánya with HUF 160-165,000 (EUR 428,24-441,81). Salgótarján and Békéscsaba remain among the cheapest cities, with rents of HUF 90-90,000 (EUR 240,84).

Featured image: illustration