Rental market turnaround might not come that soon in Hungary
The housing market started to slow down in Hungary at the end of the last year. However, financial experts are not expecting the Hungarian rental market to follow suit anytime soon. Purchasing a property is still an attractive investment option in Hungary, which could start to push prices down in the longer term.
As we have previously written, the housing market in Hungary started to slow down at the end of 2022. The number of transactions was at a decade-long low point, which affects the rental market as well. Pénzcentrum asked several experts to share their predictions on the rental market in Hungary.
What’s behind the stagnation?
“Demand in the current rental market is still very strong due to customers being priced out of the for-sale segment by more expensive credit facilities,”
said Benedikt Károly, Head of PR and Analysis at Duna House to Pénzcentrum. According to the expert, the high demand on the rental market stays until loan repayments and interest rates fall. Due to the high interest rates, people who would otherwise consider a purchase on the housing market, are pushed back to the rental market.
Read alsoEU funds will not arrive on time to Hungary
Balogh László, Chief economic expert at ingatlan.com further elaborates on the situation. According to Mr. Balogh, the growing supply in the rental market is being absorbed by a stable demand. The stabilisation of the economic environment could lead to increased prices in the near future.
Rental prices might grow due to the end of the heating season. Mr. Balogh argues that due to the utility crisis – following Russia’s invasion of Ukraine, – landlords were afraid to increase rents. They were afraid that tenants might not have been able to pay them due to the increase in their utility bills.
However, the utility crisis has been avoided, and wages are increasing with the line of inflation. This could mean that landlords will be more courageous to ask for higher rental prices, as the return on their investments took a huge hit in recent times.
How long should people wait?
Mr. Benedikt advises that those who are not in a hurry to change rent should not change for the time being. The expert argues that people are holding onto their investments in the rental market. Their desire to see a return on their investments could increase supply. Tenants might also wait for people to make their moves in the housing market.
“As prices of properties for sale fall and the increasing possibility of bargaining makes property investment more attractive, the supply of properties for rent is expected to increase,” said Mr. Benedikt, who predicts this might happen during summertime at the earliest.
Read alsoLooking to buy property cheaply in Hungary? Look here
Source: Pénzcentrum.hu
The growing Political uncertainty in Hungary, the economy present and future outlook, that it will decline further from its present destabilized position, the forint value against all other major currency’s, under “Ruthless” pressure, the ZENITH of inflation its effects presently and into the immediate future – escalated cost of daily life expenditure, these are just a “Handful” of the horrendous obstacles confronting ALL in Hungary at this time.
The property real estate market in Hungary, is SATURATED by SELLERS.
There will be an overall near 8% – rightfully “mean” decline reduction in the property market, in Hungary.
Factors & circumstances in previous paragraphs – the “Crumbling” of the economic & financial position of Hungary, the cessation, through the “Style” & “Games” played by the present Prime Minister of Hungary – Victor Orban – of European Union funding – with no indication, this cataclysmic situation is near being resolved, deepens the Future – it could be argued what FUTURE there is for Hungary.
Consumer Confidence across the landscape of the components of the Hungarian economy, the impact, it is aggressively spreading throughout civilian life is factual and appalling.
Is it likened you could ask – to the atmosphere of Hungarian life generated through events in 1945-1946 – then questioning as millions of us DID – what is happening to Hungary?
There are STRONG parallels of similarity to those DARKENED black times that extended in Hungary to 1989, being Governed as we were by a Communist Russian Government.
Victor Orban – because he has dismally FAILED – shamed himself & Hungary as our Prime Minister, in dismantling, fragmenting, stripping and pulling apart, dividing, – an agenda to DESTROY ultimately the European Union – the destruction of DEMOCRACY – the core functionality under which membership of the European Union is rightfully gained, and DELIVERS.
Hungary – sighting just the European Union “Slaughtered” relationship – effected directed from the desk of our present Prime Minister – Victor Orban, the proud name of Hungary – the brand name of Hungary has been HUMILIATED.
Who is LEFT as FRIENDS of Hungary?
Answer: Russia & China – both Communist Governments.
The BIG picture looking at Hungary – pressures from the outside WORLD on Hungary – the DEMOCRATIC world – then the ATMOSPHERE inside Hungary our civilian life – the FUTURE – gives no VALIDNESS to make INVESTMENTS into Hungary, which returns to the subject of this DNH article -the Real Estate – Property & Rental Markets in Budapest, Hungary – asking the potent / direct QUESTION – what incentive/stimulant – is visible to INVEST in Hungary?
History never Lies.
President – John. Fitzgerald Kennedy, the 35th President of the United States of America said, post the Cuban Missile crisis in 1961-1962 ;
“These are dangerous and uncertain times we live.
No one expects our lives in these years nor in decades to come to be easy.”
Russia – Cuban Missile Crisis – that name again, that is ‘SPOOKING” Hungary, being “Bowed” to by the present Prime Minister of Hungary – Victor Orban & his Government.