Airbnb prices began to decrease in Budapest

In 2023, the number of Airbnbs in the Hungarian capital expanded by 30%. As a result, there is a glut on the market, which may reduce the prices of short-term apartment rentals in Budapest, one of Europe’s most popular tourist destinations.

According to Világgazdaság, due to the huge support, average Airbnb prices started to fall in Budapest. Balázs Schumicky, the president of the Association of the Hungarian Short-term Apartment Renters (MAKE), said that many owners entered the market after the good news of 2022 when apartment owners could increase their prices considerably. Since lots of apartment owners entered the market, prices started to decrease last year.

The number of privately owned accommodations grew by 30% in Budapest in 2023 compared to 2022. After COVID, only 7-8 thousand apartments were on the market. At the moment, that number exceeds 16 thousand.

The number of foreign tourists in Budapest increased significantly in 2023. However, the rate did not reach 30%. For example, in December, the rise of guest nights in Hungary was only 12.8%.

Read also:

• Budapest is one of the cheapest cities in the world for an Airbnb holiday – Read more HERE
• Budapest’s downtown district shuts down illegal Airbnbs one after the other – Details in THIS article

Mixed-quality apartments and fraudsters on the market

The reason behind the rise of support in the market is that many apartment owners realised they could not increase rental prices since subtenants cannot pay more.

The utilisation rate of the Budapest Airbnb sector fell by 5%. Furthermore, the income of the apartment owners adjusted for inflation steeply declined in 2023. Moreover, guests wait for booking until the last moment because they can easily find empty rooms.

The president of the MAKE said the quality of the new apartments on the market is mixed.

Interestingly, Budapest became more expensive after the COVID pandemic. Therefore, the city is no longer at the top of the best price-best quality matrix. Mr Schumicky added that Budapest reached Western European prices in many aspects.

Concerning the future, he said that since Western European tourists got used to a 4-6% average inflation, nobody should expect a considerable price rise in the Budapest Airbnb sector. Therefore, many apartment owners decided to turn to the long-term rental market instead.

In Budapest’s downtown, a studio apartment costs HUF 5-7,000/person (EUR 13-18). Only those who work in the black market can increase their profits. Thanks to a new European Union decree, the Hungarian Tax and Customs Authority (NAV) will be able to spot and fine them from January.

In Budapest, there will be fewer grand events this year. One of them is the Formula-1 Grand Prix between 19-21 July and the Coldplay concert on 16 June. We wrote about that HERE.