Rental prices exceeded a psychological barrier in Budapest

Rental prices in Budapest exceeded a psychological record. Average rent prices in the capital have never been this high.

According to infostart.hu, the price rise was 5% compared to last December. As a result, the average rental price level exceeded HUF 250,000 (EUR 634) per month, a psychological barrier for most Hungarians.

The new year kicked off strongly in the Hungarian real estate market, especially in the rental market. The new, HUF 250,000 average is based on the latest rent price market analysis of the Rentingo.com rental platform.

Soaring rental prices

Thanks to the decreasing inflation and rising wages, more people can afford better places to rent. As a result, the balance between the demand and supply sides lowered to a 1.5-year record of 4.5%. Competition gets sharper. Pet owners are probably in the most difficult position because the number of rents allowing pets is low.

Rentingo says that soaring rent prices in the first two months of the year is something they got used to. The reason is that people tend to decide about their housing in December and start to search for new flats in January. Furthermore, even foreign university students boosted the sector in February when they swarmed the market, finishing the winter exam period and waiting for the start of the spring semester. The February demand is much beyond that in August, but still considerable.

Read also:

• Trend change: rent prices rise again in Hungary – Read more HERE
• The Economist: Budapest tops the list for most unaffordable rental prices! – Details in THIS article