Restrictive measures could bring cheaper rents in Budapest

The average rental price of flats in the Hungarian capital is currently 140 thousand Forints per month, which is 15 % cheaper than before the coronavirus outbreak. Restrictive measures to prevent the spread of the virus could decrease rental prices even more in college towns as Hungarian higher education moves to the online space again.

September ended with mixed results for the Hungarian rental market – says Forbes.

Based on KSH and ingatlan.com data, this September, rental prices were 5 % cheaper than a year ago.

According to László Balogh, chief economic expert at ingatlan.com, the yearly decrease of prices by 10-15 % seems to be stabilised in the capital. In contrast, in other parts of the country, prices are relatively steady. The newest restrictive measures imposed to prevent the spread of the virus, however, could alter rental fees in the rest of the year.

Coronavirus dictates the prices now

While in previous years, as a result of the start of the academic year, September has always brought increases in rental prices, the coronavirus now made the rental market volatile.

All higher education is moving to the online space from November, so many of the students are moving home and consequently, the supply of rental flats – which has already reached records –, could grow further.

“The growing number of flats on the market could certainly cause a further decrease in rental prices in the rest of the year.” – explains Balogh.

According to him, the winners of the situation could be the college and university students who move to flats as dormitories shut down since they can now pick from more than 14 thousand apartments in Budapest, and from more than 21 thousand flats in the whole country. The supply of rental flats in Budapest has increased by 62 % in recent years, and by 42 % in the entire country.

Feels like 2017

The average rental price of flats in Budapest is currently 140 thousand Forints per month, which is 15 % cheaper than it used to be before the coronavirus outbreak.

Rental prices in other college towns were relatively steady; in Debrecen, the average monthly cost is 110 thousand, in Győr 100 thousand and Pécs it is 90 thousand Forints. Nyíregyháza (80 thousand), Miskolc (84 thousand), and Eger (90 thousand) belong to the cheaper college towns.

Featured Image: Alpár Kató / Daily News Hungary

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Source: Forbes