High-end parking craze in Budapest: Buyers shell out millions for premium garages
As real estate prices continue to rise, many are choosing to invest in property as a way to protect and grow their wealth. However, not everyone can afford to purchase full residential properties at current prices, prompting some to turn to garage investments as a more budget-friendly option. This trend is reflected in the market, with garage prices rising significantly. Pénzcentrum took a look at what kind of garages are available for as much as HUF 50-60 million (EUR 126.7 thousand-152 thousand), and even examined the most expensive listing, priced at an astounding HUF 229 million (EUR 580 thousand).
Parking space and garage prices on the rise
The rising number of cars on the road has naturally increased the demand for garages and parking spaces, but the supply hasn’t kept pace with demand. As a result, prices for both parking spaces and standalone garages have steadily climbed over the past few years. Last year alone, garage prices across the country increased by an average of 10%, Pénzcentrum reports.
In Budapest, the average price for a garage hit HUF 7.2 million (EUR 18.2 thousand) in September, marking an 11% year-on-year increase. The trend was not limited to the capital; similar price hikes were seen in other large cities across Hungary. Interestingly, unlike in most markets where an increase in supply usually leads to price stabilisation or a drop, the garage market has continued to defy this pattern.
Smaller investment, solid return
According to Otthon Centrum, the first quarter of this year saw a slight easing in garage prices in line with broader real estate trends, but garages remain an attractive investment, especially for those with smaller budgets who are unable to afford an entire home. Despite requiring a smaller initial investment, garages can still yield solid returns, sometimes comparable to residential properties.
The average sale price for garages nationwide has hovered around HUF 6.5 million (EUR 16.5 thousand) in recent months. The type of garage significantly affects the price; standalone garages tend to be more expensive than parking spaces in shared garages. Demand for garages is particularly strong in downtown Budapest, where the starting price for a parking space in a shared garage is around HUF 6 million (EUR 15.2 thousand), while more spacious or premium locations can cost up to HUF 8-9 million (EUR 20.2 thousand-22.8 thousand). Similar trends can be seen in regional cities, where prices typically range from HUF 5 to 6 million (EUR 12.7 thousand-15.2 thousand).
Experts from Otthon Centrum noted that while garages require a lower investment than residential properties, the income generated from renting them out is also lower. However, in some cases, the returns can be just as high, if not higher. For those unable to invest larger sums, garages represent a promising opportunity.
Data from OTP Otthon confirms that garage prices tend to follow the overall trends in the real estate market. According to Bohus Péter, PR manager at OTP Otthon, after a market dip in March 2024, garage prices began to climb again, exceeding an average of HUF 10 million (EUR 25.3 thousand) by July. He also highlighted that while garage rental prices are rising, they still lag behind residential rental rates.
According to the real estate listing website otpotthon.hu, the average monthly rental for a garage in Hungary is around HUF 32,000 (EUR 81), with prices in Budapest slightly higher at HUF 35,000 (EUR 88.7). Garages are also less prone to wear and tear compared to rental properties, making them a low-maintenance investment.
Top 5 most expensive garages on the market
Pénzcentrum checked the current listings on ingatlan.com and compiled a list of the priciest garages on the market to see what justifies their hefty price tags. The list focuses on standalone garages.
5. Budapest, 12th district, Tamási Áron Street: HUF 30.5 million (EUR 77.3 thousand)
The fifth entry on the list is a 36-square-meter garage in Budapest’s 12th district. The space, which is equipped with an automatic garage door, can accommodate two cars and remains comfortably warm in winter due to the house’s heating pipes running through the area. The seller recommends the property as an investment for rental purposes.
4. Budapest, 1st district, Fazekas Street: HUF 37.5 million (EUR 95 thousand)
In the 1st district, buyers can find a 32-square-meter heated garage for HUF 37.5 million. While in good condition, this garage lacks an automatic door, which might be a drawback for some.
3. Dunaújváros, Budai Nagy Antal Road: HUF 39.9 million (EUR 101 thousand)
A rare non-Budapest entry makes the list in third place. This unique property was created by combining six adjacent garages into a single 80-square-meter space. The garage is fully renovated, heated, and equipped with a security system. The listing suggests it could also be used as a workshop or storage space.
2. Budapest, 2nd district, Káplár Street: HUF 59 million (EUR 149.5 thousand)
For nearly the price of a small apartment, a buyer can purchase a 69-square-meter garage in one of Budapest’s most desirable districts. This large garage, which needs some renovation, can fit up to four cars. It’s situated near the Mammut Shopping Center and Millenáris Park, making it a rare find in a high-demand area with few standalone garages available.
1. Budapest, 13th district, Esztergomi Street: HUF 229 million (EUR 580.5 thousand)
The most expensive listing is a 411-square-meter space located on the ground floor of a new building in Budapest’s trendy Vizafogó neighbourhood, near the Forgách Street metro station. While officially categorised as a garage, its size and large glass windows overlooking a garden make it suitable for conversion into an office, showroom, or even a medical practice. This unique property offers flexibility well beyond traditional garage use.
As demand for parking spaces continues to rise, these luxury garages have become sought-after investments, with some even reaching the price of small apartments in Budapest.
Read also:
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- Hungary to implement stricter measures for hazardous vehicles and rule-breaking drivers
Featured image: depositphotos.com