Trend change: rental prices rise again in Hungary
Last year-end’s price decrease in the Hungarian rental market stopped, and the new year’s trend is quite the opposite: rental prices began to increase again. In January, the national average concerning the increase in rental prices reached 1.5%. Meanwhile, that rate was 1.9% in Budapest compared to last December. In an annual comparison, the national price rise was 13%, while in Budapest, it was lower, “only” 12%.
According to index.hu, the Hungarian rental market began the new year with a trend change. László Balogh, the leading economic expert of ingatlan.com, said they expected a price rise in early 2024 following last year’s fall. That is because of the rising salaries and the increasing real wages. That allowed apartment owners to ask more for property.
The Hungarian rental price index adjusted with inflation surpassed the 2015 level by 23%. In Budapest, it was 17% higher. The expert said the increasing rental prices may attract investors to the real estate market. As a result, even property prices may begin to rise again in Hungary.
In Budapest, the average rental price reached HUF 250,000 (EUR 642) per month in February. The most expensive district of the capital is the 2nd district with HUF 352,000 (EUR 904). The second and the third place went to the 5th and 1st districts. Both are in the heart of the city. The 1st district is the Buda Castle District and the area around it, while the 5th district is the historic town of Pest.
These are the most expensive Hungarian cities
But where can you find the highest number of flats to rent? In the 11th and 13th districts. In the former, the average is the Budapest average, HUF 250,000. In the latter, the average rental price is HUF 5,000 above that. The cheapest district in that respect is the 20th in South Budapest.
In big cities, the average rental price level went above HUF 200,000 in Debrecen and Székesfehérvár. Both are important industrial centres in rural Hungary. Debrecen is to host the new BMW plant, while Székesfehérvár has multiple companies. The third one is Győr with Audi, but the rental price is below that threshold at HUF 195,000 (EUR 500). The cheapest Hungarian city is Békéscsaba with only HUF 95,000 (EUR 244) per month.
Debrecen, Győr, Székesfehérvár and other expensive rural Hungarian cities are centres of higher education, too, which increases rental prices. In February, new programs started at the universities, which increased demand.
Banks offering better loans for homebuyers
Following the Hungarian National Bank’s base rate decrease in January, banks in Hungary gradually lowered their interest rates concerning loans for homebuyers, telex.hu wrote. In October, it stood at 8.5%, but from January, it decreased to 7.3%. In February, they went lower, and the current level is between 6.18% and 6.44%. That trend could also give a new boost to housing investments and the housing sector.