The Hungarian and Budapest rental market is picking up. Although average prices are still high, prices of apartments are not as daunting as previously.
Although it is still possible to rent an apartment in Budapest at a lower price than in previous years, the price level is still higher than last year’s average, piacesprofit.hu reports the latest summary by real estate marketplace Otthon Centrum.
Buyers’ market moves rental prices
The Hungarian housing market is stagnating, as prices and inflation reached their limit. However, the big turnaround favouring buyers haven’t come so far. At the same time, more and more experts are expecting a change of fortune for buyers once this current stagnation period ends. But until then there should not be any major changes in the rental market either.
“The real estate market trend, which began to slow down significantly from Q4 2022, continues to have an impact on the rental market,” said Otthon Centrum’s head of analysis, Gábor Soóki-Tóth.
Summarising the latest developments in the rental market, the expert said that in the first quarter of this year, the average monthly rent of used brick apartments in the capital was HUF 216,000 (EUR 570). This is higher than the average of last year, but compared to the last quarter of last year, the rent is already 6 percent lower.
The Buda districts – historically the most pricey – remain the most expensive, with an average monthly rent for apartments of HUF 256,000 (EUR 675). The decrease in these districts is the smallest, at just 2 percent. In the inner city, the average is HUF 220,000 (EUR 580), while in the outer Pest districts, the average monthly rent is HUF 156,000 (EUR 412), in both parts of the city, already 6 percent cheaper on average compared to the fourth quarter of last year.
In Budapest, rental prices for large apartments dropped the most significantly in the past months. For three-bedroom flats, the average price of HUF 263,000 (EUR 694) is already 15 percent lower than in Q4 2022. One-bedroom flats could be rented for HUF 144,000 (EUR 380), which is 2 percent lower than the last months of last year.
However, popular two-room apartments saw a rental price increase, as the HUF 212,000 (EUR 560) average was 7 percent larger than last year.
In the most popular districts, these are the prices tenants currently face while looking for an apartment: district V is the most expensive at HUF 327,000 (EUR 863) while in district XI, the average monthly rent is HUF 232,000 (EUR 612) and in district XIII HUF 205,000 (EUR 540).
In the outer Pest districts, which have traditionally lower prices, such as in district VIII, the average rental price was HUF 180,000 (EUR 475) and in district XIV HUF 175,000 (EUR 462).