Surge in rental market prices amid growing demand in Hungary
In the last month, prices in the rental market surged across Hungary, particularly in Budapest, as the high season kicked off with increased demand following the announcement of university admission points.
In July, both the national and Budapest rental markets saw continued price increases, coinciding with the start of the high season, which was triggered by the announcement of higher education admission points. Demand in the rental market has risen by 14 percent compared to last year, according to a report by Világgazdaság. Average rents increased by 1.8 percent nationally from June, while Budapest saw a 1.4 percent rise.
As of early August, the average rent for an apartment in Budapest reached HUF 250,000 (EUR 636), based on the joint rent index from KSH and Ingatlan.com. Nationally, rents have surged by 10.3 percent, while the capital saw a slightly lower increase of 9.3 percent. László Balogh, the chief economic expert at Ingatlan.com, highlighted that the start of the rental season likely influenced this rise, with demand growing by 14 percent since the admission thresholds were announced, compared to last year.
Photo: www.facebook.com/spiceofeurope/
Telex reports that rent increases varied across Budapest. In the Buda hill districts (districts I, II, and XII), rents rose by 0.8 percent monthly, while other Buda districts (districts III, XI, and XXII) experienced a 3-percent combined increase. On the Pest side, the outer districts (such as districts IV, XV, and XVI) saw the most significant monthly increase, reaching 2.8 percent. This may be because these districts were previously more affordable, making them increasingly attractive to renters, according to Ingatlan.com.
Világgazdaság also notes that high rents are causing more students to delay renting. Unlike in previous years, demand didn’t spike immediately after the admission thresholds were announced; instead, it is rising steadily. According to experts, students who wait until the end of August to sign contracts could save HUF hundreds of thousands in the major university towns, potentially leading to a busy rental market by late August.
Supply keeps up with rising demand in the rental market
Photo: depositphotos.com
The supply of rental properties has been trying to keep up with the increasing demand. Data from Ingatlan.com shows that the rise in rents could have been more dramatic if landlords hadn’t managed to increase the number of available apartments. Fortunately for renters, the supply is growing week by week. At the beginning of July, there were only 14,300 apartments available nationwide, but by mid-August, the supply had increased to 15,500 as more properties became available for rent.
According to László Balogh, this increase in supply is helping to moderate the pace of rental price growth, which is good news for those looking to rent. He also noted that a key concern this year was whether the usual seasonal increase in available rental properties would occur, especially as government bonds have attracted many property investors away from the market. However, the data suggests that enough investors have returned to the property market to kick off the season as expected.
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2 Comments
The Real Person!
The Real Person!
Underpinned by ;
Greed, Selfishness and Exploitation – created by, driven by the Real Estate and Property / Rental Property – Vultures.
REMEMBER – fellow Hungarians, the state of our collapsed Economy, which FACTUALLY worsens, the ratio of sellers in property in Budapest, Hungary over buyers, which widens as more new or “re-furbished” property’s come up for SALE.
Interest Rates in Hungary are the highest in the European Union.
PRESSURIZATION on our Currency – that will sooner than later “succumb” to the “Power” of “others”.
Government’s Debt – a Debt of the citizens, the “ageing” downsizing population of Hungary – BORROWINGS – Horrendous.
The DEBT building daily to the European Union through Orban’s FAILINGS on Compliance – that see’s this DEBT that factually has become un-serviceable – funds not available to RETIRE it.
Daily interest Rate’s on this HUNGARIAN owed DEBT to the European Union – Devastating.
Growing Political un-rest in Budapest, Hungary, the “Slow” awakening” of Hungarians coming to accept & REALIZE, that the Orban – Fidesz Government have PILLAGED them personally and Hungary.
Western Investment in the Property / Real Estate Market – won’t HAPPEN, through the GROWING Doubt of the Political future of Hungary and it’s COLLAPSING Economy.
The “nail” driven deeper into Hungary, through the DISTILLATION of Democracy, by it’s Orban – Fidesz Government, and Orbans “greased palm” – his DRIVE to grow and grow Partnerships and Relationships with Russia and China.
If the West don’t COME – who from the East will CONTINUE to “buy” us UP ?
Russia, China and Turkey – there a bit of a “sleeper” – from an investment perspective in the Property / Real Estate environment.
It REMAINS and it will WORSEN, the on-going CARNAGE happening within the Real Estate Property Profession of Budapest, Hungary.
Those – “Birds of Prey” – don’t GET into a position, that ALLOWS them to EXPLOIT you.
The Real Person!
The Real Person!
This is a complete disaster for young families looking to have children. They cannot afford to house them, so they’re unlikely to be born!