Downward trend: Budapest rental prices fall below psychological limit
Rental prices in the Hungarian capital began to fall again in October. According to the latest analysis from the Rentingo rental platform, the average monthly rent in Budapest dropped to HUF 248,000, which is HUF 5,000 less than in September.
This means that rental prices have returned to levels last seen at the beginning of 2024, and experts believe the downward trend is far from over. The decline is largely attributed to the Otthon Start (or Home Start) housing programme, which became available in September but had already begun influencing the market over the summer.
Is the Home Start programme pushing down Budapest rents?
The preferential loan scheme has encouraged many higher-income tenants to purchase their own homes, reducing demand in the rental market. This shift has had a visible impact in a short period of time.
Rentingo reports that while fewer people are now searching for rental properties, the supply continues to grow. Many investors have bought apartments under the Home Start scheme, and these properties are now entering the rental market, further expanding the number of available flats.
This dual effect — declining demand and rising supply — is putting significant downward pressure on prices, a trend expected to continue over the coming months.
Meanwhile, asking prices have stabilised since their August low: renters were searching for properties at an average of HUF 219,000, narrowing the price gap between landlords and tenants from 20% in August to 13% in October.
The sharpest price drop was observed among mid-range apartments priced between HUF 250,000 and 350,000, which are currently the hardest to let.
Declining demand could have a lasting impact
The decrease in rental prices began in early August, when the usual late-summer surge in demand — typically following the release of university admission results — failed to materialise.
As a result, prices fell by 1.1% nationwide and 0.2% in Budapest in September. October’s data confirm that this is not a temporary fluctuation but rather the start of a long-term market adjustment.
Rentingo, which connects tenants and landlords through a transparent, verified platform, expects further moderate price declines in the months ahead.
According to experts, this period represents a “golden age” for renters, as they can now choose from a growing number of properties at more favourable prices, Telex reports.
However, analysts also caution that if the economy begins to recover and recruitment activity strengthens in the labour market, the situation could quickly reverse. In that case, rents would rise again and supply could tighten.
For now, the effects of the Home Start programme are still unfolding, and the market is likely to stabilise at the current, lower price level for the foreseeable future.