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Downward trend: Budapest rental prices fall below psychological limit
Rental prices in the Hungarian capital began to fall again in October. According to the latest analysis from the Rentingo rental platform, the average monthly rent in Budapest dropped to HUF 248,000, which is HUF 5,000 less than in September.
This means that rental prices have returned to levels last seen at the beginning of 2024, and experts believe the downward trend is far from over. The decline is largely attributed to the Otthon Start (or Home Start) housing programme, which became available in September but had already begun influencing the market over the summer.
Is the Home Start programme pushing down Budapest rents?
The preferential loan scheme has encouraged many higher-income tenants to purchase their own homes, reducing demand in the rental market. This shift has had a visible impact in a short period of time.
Rentingo reports that while fewer people are now searching for rental properties, the supply continues to grow. Many investors have bought apartments under the Home Start scheme, and these properties are now entering the rental market, further expanding the number of available flats.
This dual effect — declining demand and rising supply — is putting significant downward pressure on prices, a trend expected to continue over the coming months.
Meanwhile, asking prices have stabilised since their August low: renters were searching for properties at an average of HUF 219,000, narrowing the price gap between landlords and tenants from 20% in August to 13% in October.