Can it go even further? Hungarian rental market to experience price explosion!

Partly due to the Russian-Ukrainian war and refugees settling in Hungary, partly due to the likely disappearance of Covid, and partly because of the economy’s recovery, rental prices are soaring.

Growing demand, increasing prices

What is certain is that the situation in the Russian-Ukrainian war has stimulated the demand for apartments in Hungary, as suddenly tens of thousands of people have started looking for apartments.

After a long decrease due to the Covid epidemic and a long period of stagnation, the rental market is now recovering. Prices have mainly followed only inflation over the last 2 years but are now clearly on the rise, writes hvg.hu.

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Foreigners have returned, recovery is expected in the Airbnb market, which may lead to a decrease in demand in the rental market

Experts say real estate players have tried to minimise the economic effects of the pandemic after the sharp fall in 2020. Then, in the fourth quarter of 2021, there was a slight recovery in the market, but that too meant only a 2-5 per cent price increase for better apartments. However, since January and February, foreigners have been slowly returning to the rental market, and there are already signs that Airbnbs may get back on their feet, with more and more bookings coming to these accommodations.