The Hungarian rental market has been booming since the announcement of admission thresholds for Hungarian universities at the end of July. But there are a few details to look out for when renting a home, as experts estimate that prices could rise by up to 14% in the upcoming period. In this article, we share some tips to help you save on your rental costs!
Current rental fees
In mid-August, the average rent on the supply market in Budapest is EUR 483 (~HUF 195,000). This represents an increase of EUR 124 (~HUF 50,000) compared to EUR 359 (~HUF 145,000) a year earlier. This year, the average rent in eight districts of the Hungarian capital (I, II, III, V, VI, XI, XII, XIII) reaches or even exceeds EUR 496 (~HUF 200,000). In the university cities of Hungary, including Debrecen, Győr, Szeged and Pécs, the average rent of an apartment ranges between EUR 335-372 (~HUF 135,000-150,000). At the same time, it is important to note that rents in European university cities are much more expensive than in Budapest – reported by Világgazdaság.
In the county capitals, the overall average rent rose to EUR 297 (~HUF 120,000) from EUR 260 (~HUF 105,000) last year. In terms of rental market rents, Miskolc, Szolnok, Kaposvár, Békéscsaba and Salgótarján have the most favourable rents, numerically between EUR 223-248 (~HUF 90,000-100,000).
14% price increase?
Tenants who were thinking about changing their apartment are still in time. Currently, there are approximately 12,000 apartments for rent across the country. Besides the wide range of supply, demand is also intensifying. According to Ingatlan.com, demand for rented accommodation has increased by 10% since the announcement of the admission thresholds for Hungarian universities. However, it is worth making a decision in time, as experts say that inflation could increase the rent of many apartments by as much as EUR 25-50 (~HUF 10,000-20,000). This means a rental increase of 14% in the upcoming months.
Renewal of lease contracts
August and September are the anniversaries of many people’s tenancies. In several cases, automatic rent increases are explained by the rate of inflation. This was 13.7% in July, which can mean a monthly increase of up to EUR 25-50 (~HUF 10-20,000 HUF) in the near future. It is important to note that price increases are mentioned as an option in the lease contracts, so it is up to the owners to decide whether to take advantage of it. In the case of reliable tenants, it is not always applied by owners. If this is not the case, tenants should check whether it is worth extending their tenancy or changing their place of residence.
Presumably, the new utility regulations, which impose higher tariffs for above-average electricity and gas consumption, will push tenants towards newly build rental properties with lower consumption. Therefore, tenants can benefit from choosing a more energy-efficient and cheaper apartment with lower overheads from the current wide range of supply.
According to data from ingatlan.com, the average rent for newly built, modern or upgraded apartments in Budapest was EUR 496 (~HUF 200,000) at the end of July, compared to EUR 372 (~HUF 150,000) for apartments in average condition. This means a EUR 124 (~HUF 50,000) monthly rent advantage to make the higher rent worthwhile.
Similarly, in the larger university towns, there is a difference of EUR 50-149 (~HUF 20-60,000) between modern rentals and those in average condition. Because of these significant differences, it is important that prospective tenants check the exact consumption, utility bills and common charges of the apartment before signing a contract and make their decision on this basis.
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Source: vg.hu, tudastar.ingatlan.com