Airbnb made flat hotels in Budapest’s city centre more expensive

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Photo: Alpár Kató - Daily News Hungary

In two and a half years the number of rented flat hotels in the Hungarian capital’s centre increased by 70% while flats offered by private individuals by 6%. This statistical increase means additional thousands of HUF people need to pay for the rent.

Index reported that experts examined the changing tendencies of the real estate market caused by Airbnb, and how much money customers need to pay for a 50 square-metres flat above the average rent fee. The results showed that Airbnb still has a significant effect on the real estate market of Budapest.

In November 2016, Airbnb offered 6,300 flats, but this March this number increased to 10,000 which means 67% improvement.

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Flats offered by private individuals for long term increased by 6,5% which means 3,200 estates, while the average number of flats in the whole capital is approximately 8,800. Most of these flat hotels are in Districts VII, VI, and V. The Airbnb-effect is the strongest in District V where 50 square metres flat costs 202 thousand HUF/month (611 EUR) – the average rent fee is 159 thousand HUF (481 EUR).

  • District I – 200,000 HUF (605 EUR)
  • District VI – 178,000 HUF (538 EUR)
  • District VII – 167,000 HUF (505 EUR)
  • District XII, XX, XXIII – 109,000–125,000 HUF (330–378 EUR)

Before flat hotels in 2010, the rent prices of flats located in the popular centre districts of Budapest were only higher by 2–3% from the average. The currently measured 10–27% of increase means that although the prices of flat hotels affect the real estate market, it is only significant in the city centre.

Because of Airbnb, rent fees increased by 13–27 thousand HUF (40–80 EUR).

However, the expansion of flat hotels on the real estate market is overlooked by the local governments with strict rules and regulations.

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Photo: Alpár Kató – Daily News Hungary

Source: www.index.hu

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