Record-high increase of rent in Budapest

The year 2021 ended with an increase in prices, although under the influence of Covid, this was not a sure thing at all. The drastic rise in prices is felt mainly in Budapest.

The rise in prices on the rental market continued in 2021, and in December 2021, rents increased by 0.6 per cent nationwide compared to November. Year-on-year price increases were 13.1% nationwide and 12.7% in Budapest. Last year, more than a hundred thousand apartments and houses were offered for rent, which corresponds to the 2020 supply level. In 2021, supply increased in Budapest and decreased in other cities, says mandiner.hu.

Budapest prices at a peak

In January 2022, the apartments in the 5th district of Budapest were offered for the most expensive price. The rent of HUF 245,000 (€675) corresponds to an increase of more than fifty per cent, a historical record.

Read also: Hungary broke EU record in real estate price rise!

In addition to last year’s changes in the rental market, the analysis also shows the current rent prices in January. In Budapest, the average amount is HUF 150,000 (€410) per month, which corresponds to an increase of more than 11 per cent compared to the level of last January.

Székesfehérvár, Veszprém, Debrecen as big players

Among rural towns, the owners offer the most expensive apartments in Székesfehérvár, for an average of HUF 140,000 (€385) per month, which means an annual increase of 17%. Veszprém was the second, with an average of 130,000 forints (€360), then Debrecen, with 120,000 forints (€330) – the former means an 8 per cent and the latter a 20 per cent price increase.

According to January data, rent prices were below HUF 100,000 (€275) in Szolnok, Kaposvár, Miskolc, Salgótarján, Békéscsaba, Nyíregyháza, and Szekszárd.

Read also: This is why 2022 will be a very exciting year for the Hungarian property market

The price increase is expected to slow down

In the case of Budapest, it can already be seen that house prices have not been able to rise faster than inflation since 2019, so the 14.5% increase was mainly due to the comeback of cheaper county seats and the dynamic price increase in the agglomeration and settlements around Lake Balaton.

Although there are always areas with fluctuating value, it is not expected that the capital-countryside housing price rates will change, so it is expected that the rate of price increase will slow down in the most popular rural locations as well, after which it will adjust to keep to the pace of inflation, added portfolio.hu.

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Source: mandiner, portfolio

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1 Comment

Norbert : says:

31/01/2022 at 12:44

Tennants of Rental Properties – in Budapest, Hungary and those looking or planing to Rent – do your Investigatory homework before you sign any Lease or Rental Agreement.
This article “Fuels” one of similarity published by DNH dated 26/01/2022 – titled ;
” Hungary Suffered a Brutal Rental Price Rise – Last Year”.
This latest article continues to Confirm – the GREED and Selfish – driven Philosophy of Landlords.
Tennants – those with intent to Rent – the high degree of properties for short or long term Rental requirement – that sees Landlords somewhat SCREAMING out for tennant occupation – through an over-supply of Rental property’s – tourism ain’t Happening – but over-supply IS – tennants and those looking to Rent – Bargin with Landlords and CHALLENGE them – if you view them being driven by – Greed – Selfishness – that gives you a sense or vibe – that you are being – EXPLOITED.
The key Factors used to anaylsis the performance of a countrys Economy and its Financial postion – currently and into the FUTURE – data and statistical information – the “Core” major componentry used – ALL – in the case of Hungary – continue to TREND Downwards.
The Hungarian economy is Dangerously – STRAINED.
This downward trend of the Hungarian Economy – will bring about CARNAGE – in the broadsheet of the Property Market in Budapest, Hungary.
Rental Costs – fill rates of available and increasing numbers of property’s for Rental in Budapest, Hungary – current/present rental cost levals – must be Re-Adjusted – to – balance into the over-all – Weakening and Downward Trending – the Economic & Financial picture – that Hungary sees itself at present and into the foreseeable FUTURE.
Tennants – do your Home-work and don’t Fall Foul – of Landlords – who through – GREED, Selfishness and Exploitation – try to lure you In.