property

Here’s what to expect from Budapest’s real estate market in 2025

Budapest real estate housing crisis in Budapest's real estate market

Hungary’s real estate market is poised for significant growth. This surge is anticipated to be driven by a tremendous influx of HUF billions from government bonds and pension savings, predominantly impacting properties in Budapest and major towns.

Real estate prices to face a sharp rise in 2025

As Telex reports, Hungary’s real estate market is set to experience a sharp rise in house prices, with an expected increase of 10-15% in 2024, according to an analysis by Ingatlan.com. This surge, driven by government bonds and pension savings potentially adding over HUF 1,000 billion (approximately EUR 2.5 million) to the market, will mainly impact properties in Budapest and major cities. Although Hungarian real estate saw significant depreciation in 2023 and early 2024, the forecasted price rise would represent a strong recovery, especially with inflation projected to remain low next year.

real estate market, Budapest — Source: depositphotos.com

Never-ending price hike?

Hungary’s real estate market continues to see notable price increases, with house prices rising by 6.5% in August and 6.7% in September compared to last year, according to Ingatlan.com’s house price index. The rise, however, has been uneven across regions. Budapest experienced a significant 9.1% increase, while the northern Great Plain, including the industrial hub Debrecen, saw an 8% rise. In contrast, northern Hungary recorded only a 1.8% increase, highlighting regional disparities in the real estate market. In Budapest, the average price per square metre reached HUF 1.07 million, with the 5th district being the most expensive at HUF 1.73 million, while the lowest-priced areas include the 20th district and Salgótarján.

Government bonds and pension savings

Looking ahead, the market is expected to accelerate further as an additional HUF 1,000 billion (approximately EUR 2.5 million) could enter the housing market by 2025, driven by pension savings and government bonds. This potential windfall, equivalent to a significant portion of the annual market turnover, will likely focus on properties in Budapest and larger cities, boosting demand and further driving up real estate prices. With the Hungarian state set to pay out substantial sums to government bondholders in the coming years, many investors plan to reinvest their returns into the property market, potentially fuelling further growth in house prices.

Hungary’s real estate market could see further growth following a recent government amendment allowing savings from voluntary pension funds to be used for housing purchases. While details are yet to be clarified, this policy may drive up house prices. A government policy paper also highlights the challenges young people face in acquiring homes, suggesting future measures to boost house-buying and construction. However, potential regulations like stricter Airbnb rules or rent caps could temper price rises driven by investors. According to Ingatlan.com, at least 145,000 sales are expected in 2025, with house prices forecasted to increase by over 10-15% next year.

Budapest rent prices property prices exceeded property in hungary — Photo: depositphotos.com

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October 12, 2024

Latest inflation data out: Hungarian inflation back on target, property prices keep increasing

budapest property real estate housing residential area university apartment hotel inflation Budapest's real estate market

Hungary’s annualised consumer price index reached 3.0pc in September, falling from 3.4pc in the previous month, according to data released by the Central Statistics Office (KSH) on Thursday.

Inflation in Hungary decreases

The KSH data show food prices rose 3.7pc in September. The price of flour jumped 32.9pc, milk prices rose 13.8pc and the price of eating out increased 7.6pc, but noodle prices fell 5.8pc, egg prices dropped 3.5pc and the price of poultry edged 2.4pc lower.

Household energy prices fell 5.0pc. Gas prices were 9.4pc lower and electricity prices declined 1.3pc.

Consumer durable prices edged down 0.2pc.

Motor fuel prices fell 9.5pc.

Prices of spirits and tobacco products increased 3.9pc and clothing prices rose 3.3pc. Service prices increased 8.4pc.

Core inflation, which excludes volatile fuel and food prices, was 4.8pc.

The CPI calculated with a basket of goods and services used by pensioners was 3.2pc.

In a month-on-month comparison, consumer prices edged down 0.1pc as motor fuel prices dropped 3.7pc.

Minister’s comments

Commenting on the fresh data, National Economy Minister Márton Nagy pointed to the success of government measures to bring high inflation, a consequence of the war and sanctions, down to a “persistently low” level.

The government is keeping some of those measures in place, such as an online price comparison platform featuring products stocked at the biggest supermarket chains in the country, he added.

Persistently low inflation translates as predictability and strengthens consumer confidence, boosting consumption and supporting economic growth, he said.

Home prices rise 6.7pc in September – ingatlan.com

Home prices in Hungary rose 6.7pc year-on-year in September, listings site ingatlan.com said on Thursday.

budapest property real estate housing residential area university apartment hotel — Budapest, Hungary. Source: depositphotos.com

Home prices in the capital climbed 9.1pc. Price growth continued to accelerate, ingatlan.com said.

Prices of homes in Budapest averaged HUF 1,070,000/sqm (EUR 2,673) at the start of October, but were as high as HUF 1,730,000/sqm (EUR 4,322) in the central District V.

In Debrecen, Hungary’s second-biggest city, home prices averaged HUF 839,000/sqm (EUR 2,096). Homes were the cheapest in Salgotarjan (NE Hungary) at HUF 282,000/sqm (EUR 705).

Next year, ingatlan.com augurs a 10-15pc increase in home prices.

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Featured image: depositphotos.com

October 10, 2024

It’s worth buying property in Hungary: you may even become an EU citizen!

Spontaneous euroisation Budapest rent prices property market prices exceeded property in hungary renting in Hungary news rental

Investing your money in property in Hungary is a safe way to protect the value of your money while it has some additional benefits. For example, property prices in the country increase with the rental prices and there is a housing crisis mainly in Budapest. Hungarian property is cheaper than in a lot of other EU member states. And finally, if you buy Hungarian real estate, you may become eligible to get a Hungary Golden Visa, which enables you to stay in Hungary and move in the European Union freely for 10+10 years.

Property in Hungary is relatively cheap generating high income

The Edinburgh Reporter collected several benefits of buying an apartment or house in Hungary. What is bad news for Hungarians is good news for foreign investors. Hungarian average wages make buying property more and more challenging for employees, especially young people. As a result, many leave Hungary to work in the West and collect enough money to get an apartment here.

From the perspective of those living in Western European countries, however, property in Hungary is not that expensive. Real estate prices in Milan are 37% higher, but Berlin (26%) and Prague (25%) also precede our capital. Meanwhile, rental prices in Hungary grew by 165% between 2013 and 2023 and the trend continues. As a result, rental yields are higher (5.09%) than the EU average. Finally, if you buy real estate in Hungary for more than EUR 500,000, you and your family (spouses, children under 18, and later, dependent parents) can get a Hungary Golden Visa enabling you to live here and travel in the European Union for 10+10 years. That may lead to citizenship in the EU.

New Hungarian Golden Visa program property in Hungary — Source: depositphotos.com

Prices and taxes

Prices vary between regions, cities and even inside Budapest. One sqm in the most expensive districts (1st, 2nd, 5th, 12th) can reach EUR 5,500. But the average in Budapest is “only” EUR 2,360. In Debrecen, Győr or Hévíz near Lake Balaton, the investment amount you need is even lower.

Regarding resale property in Hungary, the price is just EUR 2,200 in Budapest.

Of course, you may pay approximately 10% more because you must pay the stamp duty (4% of the price if below EUR 2.6 million, 2% if above) and some other administrative fees listed in the article.

property in budapest investment — The downtown of Budapest. One of the best places to invest your money. Photo: Daily News Hungary – Alpár Kató

If you are under 35, you may get a 2% reduced tax rate but only to the portion over HUF 15 million (EUR 37,400). Finding a house or apartment below HUF 15 million is hard in Hungary but not impossible in the rural areas, especially in small settlements.

Getting a Hungary Golden Visa simplified

Foreigners can buy property in Hungary except for agricultural lands and heritage assets. However, you must obtain permission from the Land Registry in the district where the property is located. You should know that some local governments do not grant that to foreigners.

However, if you are a Hungarian citizen, a citizen of EU countries, Norway, Liechtenstein, Iceland, Switzerland, or a foreign citizen inheriting property, you do not need such permission.

Finally, as a buyer, you must obtain an up-to-date energy performance certificate for the property.

An additional tip is to hire a Hungarian legal company to navigate you through the process.

If you only want a golden visa but do not have EUR 500,000, you can purchase real estate funds for EUR 250,000. If you have more money and do not want to buy property, you may donate EUR 1 million to an approved institution of higher education in Hungary.

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Featured image: depositphotos.com

October 8, 2024

Shifting trends in Budapest: Real estate prices, population declines, and creative housing solutions – VIDEO

Over the past two decades, Budapest’s real estate market and population landscape have undergone significant changes, with varying trends across its districts. These shifts reflect broader transformations in the capital, from population declines in the city centre to rising property prices in certain areas, and even the emergence of tiny, innovative living spaces.

Population decline in Budapest’s core districts

Between 2001 and 2022, Budapest’s population decreased by 5%, with 17 out of its 23 districts experiencing a decline, G7 reports. Notably, the most severe population losses occurred in the central districts of the city, such as the V, VI, and VII districts. In the V and VII districts alone, populations dropped by 24%, while the VI district saw a 20% reduction.

Interestingly, while inner-city districts faced depopulation, areas on the outskirts saw growth. The XXIII district recorded nearly a 10% increase in population, with the XXII and XIII districts also experiencing significant growth, each over 7%.

The issue of population decline in the VI district has been highlighted in connection with a potential ban on Airbnb. Local authorities have raised concerns that short-term rentals could be driving residents away, a factor contributing to the district’s noticeable depopulation.

Real estate prices: rising but uneven

budapest property real estate housing residential area university apartment — Budapest, Hungary. Source: depositphotos.com

While population declines mark the city centre, the real estate market in Budapest has seen notable activity, especially over the summer. Prices nationwide have shown little month-to-month change, with a slight increase of just 0.1% between July and August. However, over the past year, real estate prices have continued to climb at a steady rate of 6.5%, a slight uptick from the previous annual figure of 6.4%, László Balogh, economy expert at ingatlan.com, told Economx.

In Budapest’s outskirts, specifically in the agglomeration of Pest County, real estate prices surged by 1.2% in July, while the rest of the country saw more mixed results. Despite this, the annual growth in Pest County remained the lowest in Hungary, at only 3.2%.

Central Budapest’s luxury real estate market saw some price adjustments recently. In the VI district, the average price per square metre for premium apartments dropped by 1% in just four weeks, from HUF 1.45 million (EUR 3,670) to HUF 1.43 million (EUR 3,618). This decline comes amid broader discussions about potential regulations targeting short-term rentals, like Airbnb. In mid-September, a referendum on banning short-term rentals is set to conclude in the VI district, with government actions on the matter likely to follow.

Despite these fluctuations, real estate remains a hot commodity in several Budapest districts, with average prices per square metre exceeding HUF 1 million (EUR 2,530) in 11 districts. Meanwhile, in four districts—XVII, XXI, XX, and XXIII—prices remain more affordable, with average prices still under HUF 800,000 (EUR 2,024) per square metre.

Creative solutions in Budapest’s housing market

Amid these changing trends, creative housing solutions have emerged in Budapest. The city recently gained attention for what could be Hungary’s smallest apartment. Located near Nyugati station, this 3.2-square-metre property originally served as a bathroom, but the owner has transformed it into a fully functional living space.

The compact apartment, currently available for rent on Airbnb, includes a kitchen area, bathroom, and sleeping loft accessible by ladder. Despite its small size, the apartment is cleverly designed to meet basic needs for a short stay. However, it lacks natural light, with only a small window by the bed and a ventilation system to provide fresh air.

This tiny apartment is also up for sale, along with a larger, 30-square-metre property, underscoring the city’s growing interest in unconventional housing solutions as real estate prices and demand continue to rise.

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Featured image: depositphotos.com

September 15, 2024

Home prices up again in Hungary

Home prices in Hungary rose 6.5pc year-on-year in August, after climbing 6.4pc in July, listings site ingatlan.com said on Friday.

Home prices in Pest County rose just 3.2pc in August, but prices in the Northern Great Plains region, home to Debrecen, Hungary’s second-biggest city, climbed 8.3pc. Prices in Western Transdanubia were up 8.1pc and prices in the capital rose 7.8pc.

The price of homes in Budapest averaged EUR 2,684/sqm in the first two weeks of September, ingatlan.com said. In Debrecen, prices averaged EUR 2,109/sqm, while they averaged EUR 2,010/sqm in Győr, EUR 2,002/sqm in Veszprém, EUR 1,980/sqm in Székesfehérvár and EUR 1,952/sqm in Szeged.

budapest-property-building flat home prices — Photo: Daily News Hungary – Alpár Kató

Home prices will rise in Esztergom?

Thai President Foods will invest around HUF 18bn (EUR 45.5 million) to expand capacity at its noodle plant in Esztergom (North Hungary), Minister of Foreign Affairs and Trade Péter Szijjártó announced on Friday. The state is supporting the investment, which will create 80 jobs, with HUF 2bn, Szijjarto said. He added that local suppliers’ share of Thai President Foods’ feedstock was on the rise.

Close to 100pc of the plant’s output is exported, mainly to markets in Europe. European countries open to investments by Asian companies can profit much in the new era of the global economy, Szijjarto said, adding that Hungary was the “best example” of that.

The investment in Esztergom by the Thai-owned company, clearly shows the success of the government’s Eastern Opening policy, he said, adding that Asian companies were dictating the pace in a number of sectors, taking the place of their Western competitors.

He noted that bilateral trade between Hungary and Thailand had exceeded USD 750m last year.

He added that around 155,000 people were employed in the food sector in Hungary. Since 2014, the government has provided support for 78 big food industry investments, creating close to 9,000 jobs. About half of food sector output is exported.

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September 13, 2024

Housing market: High costs in Hungarian cities make smaller towns and cities abroad more appealing

Budapest is considered one of the less affordable cities, according to the central bank’s comparison of the housing market. The dynamic growth of housing prices in Central and Eastern Europe over the past 4-5 years has narrowed the previously significant gap in price levels between the more developed regions of Europe and the rapidly developing Central and Eastern European countries, writes Pénzcentrum.

Although internal migration is relatively uncommon among Hungarians, it is still feasible to relocate to another part of the country for a job with better opportunities, education, healthcare, or family reasons.

The latest data from the Hungarian Central Statistical Office (KSH) shows that the majority of the population, 38%, resides in the eastern part of the country. Meanwhile, 32% live in the capital, Budapest, and Pest County, and only 30% of the country’s total population lives in the western part, known as Transdanubia. According to the 2022 census, the most populous of the nine county seats in the Transdanubian region is Pécs, with a population of 139,000. However, the population of all county seats has decreased since the 2011 census.

Budapest rent prices property prices exceeded psychological barrier russians real estate housing market — Photo: depositphotos.com

Despite the slightly reduced popularity of suburban areas around larger cities, which offer more space and natural surroundings, these areas remain highly sought after by families looking for a home. This trend partly explains the declining population in some county seats, according to Károly Benedikt, Head of PR and Analysis at Duna House. For example, Győr, which has the second-largest population (127,000), experienced the smallest decrease in permanent residents, at just 1.5%.

Housing affordability remains a challenge in Hungary, but renting in Budapest is cheaper than in many other regional capitals. While few new homes are being built in Hungary, they are still cheaper than those in Prague or Bratislava, according to a new housing market study.

Housing affordability in Hungary has not changed significantly since 2022, with wages in Hungary meaning that property remains expensive compared to other countries, as noted in the Deloitte Property Index 2024, published on Monday (read more in THIS article).

It is often cheaper to buy a home abroad than in the Hungarian cities’ housing market

Among the capital cities, Budapest ranks in the middle in terms of affordability, even though affordability slightly worsened from 2022 to 2023. “Looking at the housing market in 2023, for instance, the average price per square meter of new housing in Italy (EUR 2,118) was lower than in all four Visegrad countries. However, in Italy, second-hand housing is already cheaper than second-hand housing in the Czech Republic, Slovakia, and Poland,” said Gábor Kohári, a real estate consultancy expert at Deloitte Hungary.

According to G7, this trend is evident in the data: in Budapest last year, the average salary required 10.4 years of savings to buy a new 70-square-meter apartment, while the national average was 10.2 years. Hungary built the fourth fewest dwellings per 1,000 inhabitants among the 24 countries surveyed last year, a trend expected to continue in 2023, as it did in 2022.

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September 3, 2024

Hungarian government’s new plan on savings may skyrocket property prices

The Hungarian government believes the country’s economy and the state budget are struggling because of the Hungarian people’s low consumption rate. The Orbán cabinet thinks they should somehow facilitate the release of savings, which statistics show to be high. Therefore, the Economic Cabinet is discussing an initiative allowing savings to be spent on home buying tax-free.

Property prices in Hungary may skyrocket again

According to G7.hu, the VAT revenue of the state budget is EUR 1.27 billion lower than calculated during the budget planning. Some experts believe one of the main reasons is the high prices in Hungary and the shopping tourism, as a consequence. We wrote HERE that the number of Hungarians shopping abroad because of the lower prices is rising unstoppably.

Meanwhile, the government believes that one of the main reasons behind the decreasing consumption is the growing savings, which the Hungarians do not want to spend due to the multiple crises between 2020 and 2024.

The Economic Cabinet is now mulling over an initiative allowing people to spend their savings on home buying tax-free. Even though we do not know any details, such a measure would revitalise the sluggish Hungarian property market. The proposal would enable money in pension funds, long-term investment accounts, and life insurance to be spent on property. It might happen that the government would make that possible even for owners of government bonds. Those two coffers contain EUR 28 and 33.08 billion, respectively. Currently, people do not spend their yield.

New bank products needed

Such a large amount of money would stimulate the Hungarian construction industry and the country’s economy. Márton Nagy, Hungary’s national economy minister, said growing real wages in Hungary does not result in more consumption in the retail sector. Instead, people spend more on housing.

Hungarian real estate property — Photo: FB/Budavári Palotanegyed

Péter Gergely, a BiztosDöntés.hu expert, said banks should create new financial products to cover new needs. For example, they should have new real estate loans adjusted to government bond deadlines and yield payments. He added those savings could lower property interest rates and divert people’s attention to government bonds since they would have a new role in the market.

G7.hu wrote that the most pressing question is how the market will price the new measures and whether or not they would cause a considerable property cost increase.

budapest_property_market — Photo: www.facebook.com/spiceofeurope/

Read also:

New apartment prices in Budapest see highest increase among European capitals in 2023 – read more HERE
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Featured image: depositphotos.com

September 1, 2024

New apartment prices in Budapest see highest increase among European capitals in 2023

Deloitte conducted a survey covering 24 European countries and 59 cities. According to the report, Budapest experienced the most significant rise in new apartment prices among EU capitals last year, with an increase of 11.2% in Hungarian forints.

Budapest sees highest rise in new apartment prices

According to the report of Telex, Warsaw (9.7%) and Oslo (7.2%) followed behind. No other European capitals saw price increases above 5% in the past year.

When considering prices in euros, Budapest also saw the highest rise.

However, Budapest remains relatively affordable compared to the region, with an average price of EUR 3,260 per square meter. New apartments are more expensive in Prague (EUR 5,153) and Bratislava (EUR 3,884), while Warsaw has lower prices (EUR 3,022).

budapest property real estate housing residential area university — Budapest, Hungary. Source: depositphotos.com

Paris remains the most expensive capital, with an average price of EUR 14,900 per square meter for new apartments, followed by Munich at EUR 10,900. Copenhagen saw the largest drop in new apartment prices in 2023, down by 7.4%.

The survey also examined London, where central city prices fell by 12.5%. When looking at countries rather than cities, Italy experienced the greatest decrease in new apartment prices. Austria is the most expensive country, with an average price of EUR 4,920 per square meter, followed by Germany (EUR 4,700), France (EUR 4,538), and the Netherlands (EUR 4,266).

In recent years, the gap between Central and Eastern European and Western European apartment prices has narrowed. In 2023, the price of new apartments in Italy fell below the average level of the four Visegrád countries (Czech Republic, Hungary, Poland, and Slovakia). Additionally, used apartments in Italy are now cheaper than in the Czech Republic, Slovakia, and Poland. Hungary was among the lowest in terms of new apartment construction per capita in the 24 countries surveyed in both 2022 and 2023.

Rental prices in Europe

Deloitte’s Property Index also analysed rental prices: Budapest has the 18th lowest rental cost among 59 European cities, with an average of EUR 11.3 per square meter, similar to Linz, Graz, and Athens. However, it’s worth noting that The Economist reported in February that

renting an apartment in Budapest is the most expensive relative to wages.

The survey also looked at how many years of average gross salary are needed to buy a typical 70-square-meter new apartment. In Hungary, this amount is 10.2 years in 2023, compared to 13.3 years in the Czech Republic. In Poland, the Netherlands, the UK, and Slovenia, it ranges from 6 to 8 years. In Romania and Italy, it’s 5 to 6 years, while in Denmark and Norway, it’s 4.7 and 4.8 years, respectively.

In 2023, mortgage interest rates varied significantly across Europe. Poland had the highest rates at 8.1%, followed by Romania at 7.7% and Hungary at 7.4%. However, Hungary also offered more favourable subsidised loan options, though these often do not reach those who need them the most. The lowest interest rates were found in Belgium (3.33%), Croatia (3.26%), and Spain (3.45%).

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Featured image: depositphotos.com

August 27, 2024

High-end parking craze in Budapest: Buyers shell out millions for premium garages

As real estate prices continue to rise, many are choosing to invest in property as a way to protect and grow their wealth. However, not everyone can afford to purchase full residential properties at current prices, prompting some to turn to garage investments as a more budget-friendly option. This trend is reflected in the market, with garage prices rising significantly. Pénzcentrum took a look at what kind of garages are available for as much as HUF 50-60 million (EUR 126.7 thousand-152 thousand), and even examined the most expensive listing, priced at an astounding HUF 229 million (EUR 580 thousand).

Parking space and garage prices on the rise

The rising number of cars on the road has naturally increased the demand for garages and parking spaces, but the supply hasn’t kept pace with demand. As a result, prices for both parking spaces and standalone garages have steadily climbed over the past few years. Last year alone, garage prices across the country increased by an average of 10%, Pénzcentrum reports.

In Budapest, the average price for a garage hit HUF 7.2 million (EUR 18.2 thousand) in September, marking an 11% year-on-year increase. The trend was not limited to the capital; similar price hikes were seen in other large cities across Hungary. Interestingly, unlike in most markets where an increase in supply usually leads to price stabilisation or a drop, the garage market has continued to defy this pattern.

Smaller investment, solid return

According to Otthon Centrum, the first quarter of this year saw a slight easing in garage prices in line with broader real estate trends, but garages remain an attractive investment, especially for those with smaller budgets who are unable to afford an entire home. Despite requiring a smaller initial investment, garages can still yield solid returns, sometimes comparable to residential properties.

The average sale price for garages nationwide has hovered around HUF 6.5 million (EUR 16.5 thousand) in recent months. The type of garage significantly affects the price; standalone garages tend to be more expensive than parking spaces in shared garages. Demand for garages is particularly strong in downtown Budapest, where the starting price for a parking space in a shared garage is around HUF 6 million (EUR 15.2 thousand), while more spacious or premium locations can cost up to HUF 8-9 million (EUR 20.2 thousand-22.8 thousand). Similar trends can be seen in regional cities, where prices typically range from HUF 5 to 6 million (EUR 12.7 thousand-15.2 thousand).

high-end luxury garage parking space2 — Illustration. Photo: depositphotos.com

Experts from Otthon Centrum noted that while garages require a lower investment than residential properties, the income generated from renting them out is also lower. However, in some cases, the returns can be just as high, if not higher. For those unable to invest larger sums, garages represent a promising opportunity.

Data from OTP Otthon confirms that garage prices tend to follow the overall trends in the real estate market. According to Bohus Péter, PR manager at OTP Otthon, after a market dip in March 2024, garage prices began to climb again, exceeding an average of HUF 10 million (EUR 25.3 thousand) by July. He also highlighted that while garage rental prices are rising, they still lag behind residential rental rates.

According to the real estate listing website otpotthon.hu, the average monthly rental for a garage in Hungary is around HUF 32,000 (EUR 81), with prices in Budapest slightly higher at HUF 35,000 (EUR 88.7). Garages are also less prone to wear and tear compared to rental properties, making them a low-maintenance investment.

Top 5 most expensive garages on the market

Pénzcentrum checked the current listings on ingatlan.com and compiled a list of the priciest garages on the market to see what justifies their hefty price tags. The list focuses on standalone garages.

5. Budapest, 12th district, Tamási Áron Street: HUF 30.5 million (EUR 77.3 thousand)
The fifth entry on the list is a 36-square-meter garage in Budapest’s 12th district. The space, which is equipped with an automatic garage door, can accommodate two cars and remains comfortably warm in winter due to the house’s heating pipes running through the area. The seller recommends the property as an investment for rental purposes.

4. Budapest, 1st district, Fazekas Street: HUF 37.5 million (EUR 95 thousand)
In the 1st district, buyers can find a 32-square-meter heated garage for HUF 37.5 million. While in good condition, this garage lacks an automatic door, which might be a drawback for some.

3. Dunaújváros, Budai Nagy Antal Road: HUF 39.9 million (EUR 101 thousand)
A rare non-Budapest entry makes the list in third place. This unique property was created by combining six adjacent garages into a single 80-square-meter space. The garage is fully renovated, heated, and equipped with a security system. The listing suggests it could also be used as a workshop or storage space.

2. Budapest, 2nd district, Káplár Street: HUF 59 million (EUR 149.5 thousand)
For nearly the price of a small apartment, a buyer can purchase a 69-square-meter garage in one of Budapest’s most desirable districts. This large garage, which needs some renovation, can fit up to four cars. It’s situated near the Mammut Shopping Center and Millenáris Park, making it a rare find in a high-demand area with few standalone garages available.

1. Budapest, 13th district, Esztergomi Street: HUF 229 million (EUR 580.5 thousand)
The most expensive listing is a 411-square-meter space located on the ground floor of a new building in Budapest’s trendy Vizafogó neighbourhood, near the Forgách Street metro station. While officially categorised as a garage, its size and large glass windows overlooking a garden make it suitable for conversion into an office, showroom, or even a medical practice. This unique property offers flexibility well beyond traditional garage use.

As demand for parking spaces continues to rise, these luxury garages have become sought-after investments, with some even reaching the price of small apartments in Budapest.

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Featured image: depositphotos.com

August 23, 2024

Válasz Online: All-time greatest property scam in Hungary involving Orbán cabinet and government-close businessmen unveiled

Sovereignty Protection Research Institute Orbán government

Válasz Online reported a week ago on the greatest property scam in Hungary in the last 35 years. However, learning more details, they said it was the biggest of all time. In a nutshell, the Hungarian government will buy office buildings for HUF 600 billion (EUR 1.52 billion) from government-close businessmen whose companies were the constructors of the buildings before. However, their market value is at least 40% less.

In an international comparison, the overpricing can reach 70%, Válasz Online wrote on 16 August. An approximate estimate of the overpricing is 40%. Who are the winners of the business if not the taxpayers who pay for it?

355,000 sqm of office building for EUR 1.52 billion

According to Válasz Online, the Hungarian government bought office buildings in three Budapest venues. They paid HUF 244 billion (EUR 620 million) for a Bosnyák Square office building complex. The Hungarian taxpayers will pay for another one at the Kopaszi Dam (EUR 650 million). Finally, the Orbán cabinet is paying HUF 100 billion (EUR 250 million) for a third office building at the Ajtósi Dürer sor, close to Budapest’s City Park.

budapest 11th district budapart visual plan property scam — Visual plan of the Kopaszi Dam. Source: Facebook/BudaPart – Kopaszi-gát

All contracts were administered by Judit Pete, a Hungarian lawyer, who took the state assignments, and the law firm of Minister Márton Nagy’s sibling.

The Hungarian government decided about the transactions in secret. There were no public procurements or competition. One of the questions that arise is: what does the Hungarian state need 355 thousand sqm of office buildings for and why it is worth buying instead of renting it? Válasz Online suggests the purchase was in the interest of the Tiborcz-circle (the son-in-law of PM Orbán) instead of the Hungarian taxpayers.

A purchase on which taxpayers lose money

Válasz Online calculated the market value of the office buildings by asking experts and comparing the transaction costs with international examples. The result was devastating.

The overpricing of office buildings is between 40 and 70%, so it is probably the all-time biggest property scam in Hungary. Válasz Online presumes nobody ever earned this much money with only one idea. The essence is that you should convince the state to buy expensive office buildings regardless of whether they need them. Provided the government is headed by your father-in-law, such persuasions become possible.

Moreover, Tiborcz-circle companies constructed the office buildings (businessmen Attila Balázs and István Garancsi and their associates). That revenue complemented their profit.

Former PM Gyurcsány’s DK turns to police

The opposition Democratic Coalition (DK) is filing a police report alleging embezzlement regarding the government’s decision to buy an office building for HUF 600 billion (EUR 1.5 billion), the party’s deputy group leader said in Budapest on Wednesday.

Gergely Arató told an online press conference that it was “outrageous that at a time of a housing crisis, the government is spending on its own housing rather than that of young people and families.” That sum would have been enough to build 15,000 apartments, he said.

Former PM Ferenc Gyurcsány's party DK slams President Sulyok — Photo: FB/Ferenc Gyurcsány

Citing experts, Arató insisted the offices were overpriced “by at least 40 percent”.

Read also:

Lake Balaton overrun with luxury properties and controversial projects – read more HERE
Orbán family associate develops massive new residential project in Budapest

August 22, 2024

How Can a Cost Estimating Company Help Your Business?

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August 21, 2024

Lake Balaton overrun with luxury properties and controversial projects

lake balaton property real estate places to live

In recent years, the shores of Lake Balaton have seen a proliferation of large-scale investments, luxury buildings, and private properties. Often met with pushback from locals, the amount of green space and open beach areas is severely reduced with each new project. Despite the opposition of some residents, who have even taken matters to court, several giga-investments have been commenced and finished around Lake Balaton in the last decade or so.

Telex has collected the most important major controversial projects that have been completed already and which could be completed in the coming years around the lake.

The north shore of Lake Balaton

In Balatonakarattya, the conference centre of the Hungarian National Bank Foundation was erected in 2022 on the site of a former holiday resort used by the Hungarian Railways. A special feature of the conference centre is that the lake itself was channelled onto the property, with a permit to create a so-called “welfare water area”. Locals have criticised the project mainly because the new complex, which covers over 12,000 square metres, has significantly disturbed the environment and the surrounding infrastructure has not been adapted to the development.

The fate of the former waterfront campsites is the subject of some controversy in Balatonakali. One of them has closed for good, but the planned terraced houses have not been built on its site. The other was liquidated in 2016 and split in two, one half of which came to the ownership of Lőrinc Mészáros (this campsite still operates today), while on the other half, new apartment buildings have been erected. The latter project, called The Village Holiday, made the news in 2019 when the contractor demolished protected reeds in a 150-metre-long area, for which the two people on the contractor team received suspended prison sentences and fines.

In Badacsonyörs, part of Badacsonytomaj, a similar issue arose in 2021, when the owner of a camping site there cut down trees claiming that they were diseased, to the outrage of many. Residents and holiday homeowners organised a public forum to find out what works were planned in the area, eventually finding out that a four-star hotel, apartments, and a campsite were to be built at the previous campsite. However, the project has yet to be completed.

Balatonfüred is in a unique position when it comes to development: as Telex reports, although the number of projects linked to government officials is extremely high there—there is almost always some kind of project going on, the biggest being perhaps the Balaport real estate complex, which includes luxury apartments and a five-star hotel—local residents do not usually take a united stand against them.

Telex also reports on NER (Nemzeti Együttműködés Rendszere, System of National Cooperation) expropriation in the case of Tihany, which is a favourite holiday resort of the Hungarian political elite, who have holiday homes and plots of land here. In contrast to Balatonfüred, in recent months there has been a big stir over a planned investment project that would have virtually built up an area that had been spontaneously afforested but was officially counted as a construction site. The construction of the apartments, planned by the real estate development company Cordia, was opposed by several civil groups and was postponed in March. From 1 October, Balázs Kötél, an independent politician, will take over as mayor, therefore it is not known whether the project will ever start.

tihany balaton — View from Tihany, photo: Pixabay

The southern shore of Lake Balaton

Investors plan a 71-apartment, three-storey building complex in Balatonmáriafürdő, which was announced in 2022 and sparked a huge backlash from local civic activists: 12,000 people signed a petition against the project. In the end, the investor found a loophole to obtain the necessary building permits by increasing the number of service apartments in the plans.

The construction of a new electric e-port in Balatonföldvár met with similar resistance from some locals, although it eventually received the necessary permits. A 2.3-hectare marina with a total area of 2.8 hectares and two jetties with a capacity of 175 boats will be built on the site, for which Balabo Ltd. won a state subsidy of HUF 897 million (EUR 2.28 million).

Balatonszemes is also to see a new luxury residential complex on the site of a former campsite, with 153 apartments, underground parking, swimming pools, and a private beach. As part of the project, over 8,600 square metres, the bed of Lake Balaton will be deepened by dredging and a 150-square-metre pier will also be built.

Balaland, a hotel and residential complex in Szántód, has received an even more significant non-refundable investment from the state of more than HUF 6 billion (EUR 15 million). As Telex highlights, this venture is also closely linked to NER.

BalaLand new Residence at Lake Balaton — Photo: Facebook/BalaLand Residence

In Balatonvilágos, a 540-metre-long promenade was parcelled up and cleared, creating 13 plots directly on the shore of Lake Balaton. Locals oppose the property complex investments because they fear they will lose their free beachfront. The issue has already been taken to court several times.

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Featured image: depositphotos.com

August 16, 2024

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.

budapest_property_market rental market — 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

Budapest rent prices property prices exceeded psychological barrier russians real estate 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.

Read also:

Hungarian real estate prices and rents continue to rise in the summer – Read here
Potential Airbnb restrictions threaten Hungary’s tourism sector – Read here

August 15, 2024

Hungarian real estate prices and rents continue to rise in the summer

The Hungarian real estate market has experienced notable price increases compared to the first quarter of the year. Average costs per square metre in Budapest have consistently remained above HUF 1 million (EUR 2,534). Concurrently, rents in the capital have risen by as much as 15 percent compared to the previous year. Data from rental platforms indicates that further increases are anticipated as rental agreements expire during the summer.

Hungarian real estate prices rose in July

According to Infostart, purchasing property in Hungary has become more expensive, with the annual rate of house price appreciation surging from 1.6 percent in January to 6.4 percent in July. Data from ingatlan.com reveals that the most significant price increases were observed in Eastern Hungary, including cities such as Szeged and Debrecen, where house prices have risen by 8.1 to 8.3 percent compared to the previous year. In contrast, Pest County experienced the slowest growth, with prices rising by around 3 percent.

László Balogh, Chief Economic Expert at ingatlan.com, noted that the average Hungarian real estate price per square metre of property in Budapest was HUF 1.02 million (EUR 2,585) in July. He added that while some districts in the capital are relatively affordable, others require significantly higher budgets.

In Districts VIII, XI, XIII, and XIV, Hungarian real estate prices range from HUF 970,000 to 1.2 million (EUR 2,457 – 2,585) per square metre. However, in the most expensive area, District V, the average price per square metre is approximately HUF 1.8 million (EUR 4,560). In comparison, in District XXIII, the cost of one square metre of property is less than HUF 700,000 (EUR 1,773).

Among other major cities, Debrecen is the most expensive, with an average cost of HUF 815,000 (EUR 2,065) per square metre. In Győr and Veszprém, average Hungarian real estate prices per square metre range between HUF 783,000 and 786,000 (EUR 1,984 – 1,991). Conversely, in Kaposvár, Szolnok, Miskolc, and Békéscsaba, average prices are between HUF 441,000 and HUF 479,000 (EUR 1,117 – 1,213). In Salgótarján, prices for one square metre were below HUF 300,000 (EUR 760) in July.

László Balogh pointed out that the price upturn in the Hungarian real estate market has urged those planning to buy a home to enter the market instead of waiting, driving up demand. Indeed, July performed extremely well in terms of the number of people seeking properties on ingatlan.com.

Budapest Hungarian real estate — Photo: Alpár Kató / Daily News Hungary

Budapest sees rents surging with the start of the semester

The end of the summer marks the end of many annual rental contracts, often coming with an increase in rent prices when leases are renewed. Meanwhile, demand on the rental market usually increases significantly at this time, as students in higher education flock to the capital come September. As DNH surveyed here, shifts in the Hungarian rental market commenced in many cities across the country after university admission scores were announced earlier in July.

As for Budapest, Index reports that in June, landlords asked for an average of HUF 239,000 (EUR 605) a month, but by July, tenants had to fork out HUF 245,000 (EUR 621). Overall, prices of Budapest flats have been affected by last month’s growth to varying degrees. Rents below HUF 200,000 (EUR 507) have risen the most, with some being up to 15 percent more expensive than last year. In comparison, the monthly cost increase for apartments that lease for HUF 200 to 350,000 (EUR 507 to 887) was less than 10 percent.

However, according to the social renting platform rentingo.com, there has also been a slight change in the amount of money offered by tenants for a flat. After four months of steady decline, the average amount they were willing to pay rose to HUF 219,000 (EUR 555) in July, from HUF 216,000 (EUR 547) the previous month. However, it is clear that this increase is well below the change in rent prices, meaning that, as Index points out, the gap between supply and demand has broadened to 12 percent.

According to László Balogh, the fast pace of house price appreciation and the intense demand for rental apartments in the Hungarian real estate market can drive investors back into the market in the future. This can not only give the sector a short-term boost but, as he highlighted, “The return of investors could also restore the faith of real estate developers in housing, which could further stimulate the market and contribute to economic growth in the longer term.”

Orbán family associate develops massive new residential project in Budapest

soroksári road millennium towers investment property budapest

Adnan Polat, a Turkish businessman closely linked to the Orbán family, is set to continue the development of the City Pearl residential complex on Soroksári Road, next to MÜPA (Palace of Arts) in Budapest, with four new phases.

A huge residential project

Polat’s project company, APD Real Estate Ltd., submitted applications in July for preliminary environmental impact assessments and unified environmental usage permits for the third, fourth, fifth, and sixth phases of the six-phase project on the 4.6-hectare site of the former Közvágóhíd, Népszava writes. These applications were filed with the Pest County Government Office, known for its close ties to the Hungarian government.

The first two phases received permits without prior assessment, under the assertion that they would have no environmental impact. According to the submitted documents, the new concrete structures, the influx of thousands of residents and cars, as well as new restaurants and shops, will similarly have no significant environmental effects.

The new development, bounded by Vágóhíd Street, Soroksári Road, Máriássy Street, and Vaskapu Street, will feature five residential towers, each 12-13 stories high, housing a total of 1,098 apartments. The ground and first floors of the buildings will offer 8,350 square meters of space for restaurants, shops, offices, and a two-story, 1,200-square-meter fitness complex. A two-level underground garage with a capacity for 1,747 cars is also planned. A large square with a “grand amphitheatre,” accessible via green steps and surrounded by shops and restaurants, will be created in front of the partly preserved old water tower.

city pearl residential park — Building of the new office and residential complex called City Pearl in 2022. Photo: MTVA/Bizományosi: Balaton József

The water tower, pavilion building at the entrance, and statues of bulls on either side of the gate will be restored. The water tower will be leased to the municipality for ten years, while the ground floor of the pavilion will house shops, cafes, and restaurants. The facades of the old slaughterhouse buildings will be rebuilt to resemble their original design, albeit using new materials, raising concerns about authenticity.

The environmental impact assessment application, submitted on 3 August, indicates that the green space ratio will be 15% in the new phases, an improvement over the 8.5% in the first two phases. Construction of the third phase is set to begin next spring, with subsequent phases starting in 2027, 2030, and 2031, and the entire project is expected to be completed by February 2034. During construction, an additional 84 trucks per day are anticipated, and once completed, the development is expected to generate nearly 5,000 additional car trips daily, representing a significant increase in local traffic.

Little to no effect on the environment?

The new district will accommodate approximately 4,000 new residents, several hundred employees, and numerous shoppers and visitors to the commercial and dining establishments. However, the documentation claims that the development will have minimal environmental impact.

Traffic-related air pollution is expected to increase slightly but remain below health thresholds in residential areas, and noise levels will not be perceptibly higher. According to the documents, the climate adaptability of the area will not change significantly, despite the installation of numerous split air conditioning units. Since there are currently no plants on the site, the project will not affect natural values.

The authors of the document conclude that the low environmental impacts will exclude any negative health effects, suggesting that obtaining the necessary permits should face no obstacles.

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August 8, 2024

Renting or buying: What’s the better choice for students in Hungary?

university student renting buying apartment

In a recent episode of a podcast by Pénzcentrum, experts delved into the age-old question of renting or buying a home that many students and their families face. This dilemma becomes particularly pressing after university admission results are released, as students need to secure housing, often far from home.

Renting vs. buying: The debate

With high rental prices across Hungary, particularly in major cities like Budapest, the question of whether to rent or buy is crucial. Although renting may seem cheaper initially, Palkó István, a credit market expert, suggests that buying might be more beneficial in the long run—even if it involves taking out a mortgage, Pénzcentrum writes.

Current market conditions

Rental prices vary widely across different areas. In smaller university towns like Szeged, Veszprém, and Pécs, and in some of the cheaper districts of Budapest, monthly rents for a 50-60 square meter apartment range from HUF 150,000 to 160,000. In contrast, in the more expensive districts, especially in Buda, rents can reach HUF 250,000 to 280,000 or more.

Cost of buying

Currently, a small one-bedroom apartment in Budapest costs around HUF 40 million. With a 20% down payment, the monthly mortgage payment would be approximately HUF 240,000 to 260,000. While this is higher than some rental prices, the potential long-term benefits could outweigh these initial costs.

Calculations and future projections

A detailed analysis compared the costs of renting versus buying over a five-year period. Starting with a monthly rent of HUF 166,667 and a mortgage payment of HUF 242,017, the analysis assumed a 20% down payment. It noted that students typically lack sufficient income to qualify for a mortgage themselves, so the loans are usually taken out by parents.

Over the five years, while the rental payments are expected to increase by 6.5% annually, the mortgage payments remain fixed due to a stable interest rate environment. By the end of this period, the rent would rise to HUF 214,411 per month, slightly less than the mortgage payment.

Long-term gains from buying

The key advantage of buying is the potential for property value appreciation. The analysis estimated that a property purchased for HUF 40 million could be sold for around HUF 54.8 million after five years, taking into account a similar 6.5% annual increase in property values. After repaying the remaining mortgage balance, this would leave the owner with approximately HUF 27.5 million, more than three times the initial HUF 8 million down payment.

Investment comparison

If a student or their family chooses to rent and invests the difference between the rental cost and what they would have paid for a mortgage, assuming a similar 6.5% annual return, the investment would grow to around HUF 14.9 million after five years. This amount, however, is still significantly less than the potential gains from property ownership.

Conclusion

The current market analysis suggests that, despite the higher initial costs, buying a property could offer greater financial benefits than renting. However, the decision depends on individual circumstances, including financial stability and future housing needs.

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Featured image: depositphotos.com

August 4, 2024

Home construction crisis reached Hungary, prices record-high

The 2022 international home construction crisis reached Hungary. The market of newly built properties is concentrated in Budapest, its suburbs, and Lake Balaton. The average sqm price is EUR 3410 in Budapest, 3% higher than last July.

Based on the data of ingatlan.com, there were more than 8,000 newly built properties for sale in July. László Balogh, an expert in the market segment, said the prices were at the edge of solvent demand. The average sqm price in the county seats is at EUR 2,238, index.hu wrote. Furthermore, the market still waits for the investors’ return.

Here are the prices

The number of completed homes was down by 18 percent year on year in the first half of 2024, at 6,027, the Central Statistical Office (KSH) said on Wednesday.

Building permits issued in the period were also down by 18 percent, at 8,972, KSH said.

Budapest saw the completion of 2,124 new homes, down by an annual 8.3 percent. Home constructions were down year on year by 20 percent in county seats, 27 percent in other cities and 19 percent in other localities, KSH said.

Read also:

How the rental market is shaping up in Hungary after the announcement of university admission scores – Read more HERE
The price of an average panel apartment in Budapest is shockingly high

Featured image: depositphotos.com

July 31, 2024

How the rental market is shaping up in Hungary after the announcement of university admission scores

After today’s announcement of university admission scores, a new wave of excitement hits prospective first-year students and their families, with a pressing question: where will they live during their studies?

Budapest rent prices property prices exceeded psychological barrier russians real estate — Photo: depositphotos.com

University towns: Rental market in Szeged

In Szeged, the anticipation had already stirred activity around rental properties even before the scores were revealed, Világgazdaság writes. Gabriella Szil, head of the Belvárosi Real Estate Office, noted that the limited availability of dormitory spaces in Szeged drives students towards renting apartments. Unlike previous years, when many parents purchased apartments for their university-bound children, this year shows a shift towards renting.

However, the demand has driven up rental prices. Currently, renting an apartment in Szeged costs 20-25% more per month than last year. Hungarian families typically seek more affordable rentals, ideally under HUF 140,000 (EUR 357) per month.

In contrast, foreign students studying in the city are willing to pay higher prices. They generally rent properties within the city’s central ring, close to the university, often based solely on video tours. The GDN office in Szeged expects a surge in the market and is prepared for the rush.

Rents in Kaposvár and Szombathely

Kaposvár, on the other hand, experiences little fluctuation in the market due to student arrivals. According to Zita Zsobrák, sales manager at Kaposingatlan, the university campus can accommodate most students, resulting in few seeking rentals or purchases specifically because of their studies.

Similarly, in Szombathely, the rental market is more influenced by migrant workers rather than students. While some students do seek out rentals, they generally prefer to purchase properties, as noted by Ernő Gombos, owner of the local GDN office.

Real estate market in Debrecen

Debrecen’s real estate landscape has been significantly shaped by industrial development. The influx of workers requires adequate housing, and with restrictions on worker dormitories, many turn to renting apartments. This demand keeps the rental market vibrant, even before the influx of students, driving up prices.

In Debrecen, the market is clearly a seller’s market, with rental prices ranging from HUF 180,000 to 230,000 (EUR 458 to 585). Dávid Préda, owner of PREDA SIP Real Estate, mentioned plans to offer property management services due to the high demand for well-conditioned properties, which often get rented out quickly without advertising. They also aim to assist renters, particularly young people, who may not fully understand their rights as tenants.

The Miskolc market

The Miskolc university campus, rich in dormitory spaces, generally keeps rental demand steady. However, properties near the Avas area, close to the university, are an exception, as pointed out by Gáspár Zsolt Hajdú, head of the Demeter Real Estate Center. Some investors target these areas specifically for student rentals, while others have seen foreign students opting for properties further from the campus due to direct transport links.

The situation in Pécs

In Pécs, the trend leans more towards renting than purchasing properties, as stated by László Marosvári, owner of the local GDN office. The rental market in Pécs is diverse in terms of price and amenities, with international students willing to pay more for well-equipped, often new or renovated apartments with balconies. Rent prices typically range around HUF 3,000-4,000 (EUR 7.63-10.17) per square meter.

Rental prices in Budapest

Even before the announcement of admission scores, rental prices in Budapest began to rise. Students primarily look for small studios or share larger apartments, according to Anna Radics, sales manager at Your Home in the I District, part of the GDN network. Radics highlighted a shift from short-term rentals to long-term leases, bringing many well-furnished, centrally located apartments onto the rental market.

This shift has made it difficult to find quality rental properties at a good price if they’re not modern and well-equipped. Many properties are newly built or significantly upgraded, with rents ranging from HUF 200,000 to 300,000 (EUR 509 to 763) per month. The trend shows that finding cheaper, quality rental housing in the capital is increasingly challenging.

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Featured image: depositphotos.com

July 24, 2024