Stories to understand the Hungarian real estate market

In 2018, the monthly rental fee could be decreased by 68 EUR on a national average; while in Budapest even more, 130 EUR could be saved by those tenants who rent their apartments from a friend or relative, or have been living in the property for a long time.

According to the nationwide research carried out by the Central Statistical Office in November 2018,

every 10^th Hungarian tenant pays less than the actual market rental price.

Half of the tenants rent a flat from friends or relatives, while the remaining part has been living in the apartment for a longer time, and the owner did not raise the rental fee. In some cases, tenants can stay for a lower price by completing some tasks around the house or are employed by the lessor who provides accommodation in return.

As it had been previously reported by the Hungarian news portal G7, from 2015 to 2017 there was a significant increase in the prices of the Hungarian real estate market which resulted in the capital’s property price boom.

One of the most interesting points that was revealed by the Central Statistical Office’s survey was that – if a lease agreement was established earlier, there is a greater chance that the rental fee is less than the actual amount required in case of a similar apartment. This can be explained by the fact that the owners rarely increase rental fees. Accordingly, 7% of the rental contracts realised in 2017 increased the rent, while in 2016 this proportion was 20%.

The amount of money that can be saved by renting apartment from friends or relatives are:

• 130 EUR in Budapest;

• 68 EUR in county towns;

• 34 EUR in smaller villages.

The survey also revealed the average monthly rent in October 2018 was 247 EUR on country basis; the highest amount was reported in the capital with 355 EUR rental fee/month.

The study also examined how tenants found the rented apartment. Nationwide, half of the tenants said they found it by acquaintance; one-third of them were assisted by a real estate agent; while 10% used social media, such as Facebook. As the settlement size is reduced, fewer people tend to find their homes online; however, the proportion of those who find their homes through relatives or friends is still significant in Budapest and other county towns, numerically 37% and 38.3%.

According to the results, Hungarians mainly live in rented accommodation due to employment reasons. In Budapest. their proportion is even higher than the national average, 37% of the tenants choose this housing form because of their jobs. The remaining part lives in lodgings due to family reasons (15%), as a result of marriage (10%), or because they move away from their parents (12%). In the case of Budapest and county towns, shared apartments are primarily rented by friends and students.

The proportion of foreign scholarship students is also significant in Budapest – every 5^th leased apartment are rented by foreigners, 40% because of their studies, while 31% work in the capital. This means that almost every 10^th apartment in Budapest are rented by foreign students.

Source: g7.hu