News from the real estate market: rental prices in Budapest
According to Vg.hu, the average rental price on the real estate market in the Hungarian capital increased from last year’s 130 thousand HUF (420 Euros) to 140 thousand HUF (450 Euros) per month.
In the last 5-6 years, average rental prices have doubled in Budapest. We can hardly find half as many flats under 100 thousand HUF (324 Euros) per month as two years ago. Recently, most of the apartments are available for rent for 100-150 thousand HUF (320-485 Euros) per month. The average monthly price of rent increased to 140 thousand HUF from last year’s 130 thousand.
The extent of soaring of the prices is much smaller, though than in the past few years.
Prices are stagnant now, turns out from the data collected for Világgazdaság by Ingatlan.com. As László Balogh, leader economic specialist at Ingatlan.com explained, the effect of measures taken, hoping that they will result in more legal contracts, can be detected in the offer, though the abolition of HCC did not cause a drastic movement of prices, realistic rental prices can be seen now in contracts. Those who offer their flats for rent can make more money. Because of the burden of paying the HCC, last year 83 thousand HUF (269 Euros) was the threshold level. This year leasers can go above this amount.
Still, about 20% fewer apartments are offered for rent than last year.
Anyhow, this is not the main change in the real estate market, but the decrease of the number of flats offered for 50-99 thousand HUF (160-290 Euros): it has plummeted from 40 percent to 17 percent in two years’ time. As a result, a bachelor apartment can hardly be found under 100 HUF and under 50 thousand, only fellow tenants are looked for.
The next milestone in the real estate market will be the dumping of the handover of new flats.
20-30% of the 20 thousand new flats built this year can appear on the rental market.
According to László Balogh, this will cause the expansion of the supply of flats advertised for more than 150 thousand HUF, and many tenants will go over to the side of up-to-date, energy efficient premises, with lower overhead charges, which assure lower monthly expenditures.
Rental prices have drastically increased in rural cities too, often exceeding the 100 thousand HUF (320 Euros) threshold level. Especially the settlements near the border have marked up because of the possibility of commuting. Prices have gone up in university cities and around bigger investments.
Featured Image: Wikicommons by Civertan