real estate

Wizz Air moves its headquarters to a landmark office in Budapest

Millennium Towers Wizz Air Budapest Hungary

The ultra-low-cost airline Wizz Air has relocated its headquarters to the Millennium City Center office park in Budapest. The company secured an 8,000 sqm of office space in a landmark office deal. The lease agreement was concluded for the long term with very flexible conditions. Newmark VLK Hungary provided tenant representation to execute this transaction.

In a landmark lease transaction, Wizz Air moved its staff to the Millennium Tower, which is part of Millennium City Center, a premium office park by the Danube in Budapest. The airline has set up its new headquarters by renting out the entire South Tower, which has state-of-the-art interiors and services to improve employee comfort. The company has a separate entrance and reception, a dedicated modern dining and catering area, and a unit of a leading café chain, while a modern fitness center is also available in the area.

“We tried to find a vibrant and rapidly developing location for the client. Millennium Tower is an excellent property as a lot of services surrounds it, and the building itself offers many amenities. It already functioned as a company headquarters, so a significant part of the fit-out could be retained, and a more cost-effective approach could be used to arrange the final interior space, which is an important aspect for a tenant which is a low-cost airline,” said Valter Kalaus, managing director of the real estate consulting firm, Newmark VLK Hungary which spearheaded the transaction, representing the tenant.

He added that only a few new projects have been launched in the Budapest office market over the past three years, most of the contracts are extensions, and there are very few suitable office buildings among those already operating where such a large company headquarters can be established according to the modern standards and requirements. In addition, the flexibility of the lessor has extended to the point that it can also provide additional space for the future expansion of the airline should there be a demand for it.

“We are delighted to be moving our corporate headquarters to an office building with such outstanding facilities. The new premises will give Wizz Air, Europe’s fastest-growing airline, a central hub to foster collaboration, community, and innovation to strengthen its low-fare leadership position. I am sure that the modern environment and easily -accessible downtown location will be appreciated not only by our existing and new colleagues but also by our partners while serving our continuously growing and expanding airline for many years to come.”

– said Ian Malin, Chief Financial Officer of Wizz Air.

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Orbán cabinet: State assets double since 2010

budapest parliament

Hungary has doubled the total value of its state assets from 11,600 billion forints to 21,800 billion in 2022, the national economy minister told a press conference held on the role and achievements of the National Asset Manager (MNV) on Monday.

Márton Nagy said a “significant” portion of the assets was real estate while the rest was equities and other assets.

Nagy said the MNV generated revenues 31.8 billion forints as opposed to a planned 22.7 billion forints in 2023, including 18.1 billion generated through property sales.

The company expects to earn 39.2 billion forints this year, including 32.7 billion forints from the sales of state properties, the minister said.

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Hopeful forecast: will real estate market boom in 2024?

Budapest real estate

The real estate market in Hungary saw an upswing in the first three months of 2024, with a rise in both property supply and buyer demand. We have reason for optimism for the rest of the year, according to one expert.

Encouraging performance in Q1 for Hungarian real estate

Both supply and demand in the housing market surged in March 2023. The market was characterised by a 16 percent annual increase in demand compared to 2023, reports Portfolio. In contrast to March 2023, 8 percent more apartments were offered for sale, which represents a 40 percent increase compared to 2022.

Overall, the Hungarian real estate market has been producing commendable figures this year. January 2024, for instance, witnessed a turnover that was 43 percent higher than a year before. Moreover, the amount of total mortgage loans showed an 80 percent growth.

As we elucidated in our article covering January’s statistics, the declining interest rate and loan rates below 6% contributed to the vitality of the market. Furthermore, the renewal of home purchase subsidies was also responsible for the skyrocketing buyer interest in properties.

Csongrád-Csanád county leads the list in terms of housing demand, experiencing a 50 percent increase in demand in the southern Hungarian region. In contrast, most apartments for sale were advertised in the counties of Nógrád, Jász-Nagykun-Szolnok and Vas.

In March 2024, Budapest saw a 16 percent increase in demand. However, there was a decline in the number of homes offered for sale, with 8 percent fewer ads placed compared to the previous year, resulting in a total of 12,000 properties advertised.

Budapest houses flats

László Balogh, the leading economic expert of ingtalan.com, holds an optimistic view regarding the future of the housing market. He anticipates a significant increase in market activity in 2024, projecting a 15-20 percent rise in turnover compared to 2023. This would entail approximately 120 transactions completed within the year.

Budapest: an outlier in pricing trends

The increasing supply of properties for sale benefits homebuyers, compounded by the recent reduction in interest rates on home loans within the country. Moreover, heightened demand in the housing market facilitates the sale of their own properties, which speeds up the process of purchasing a new home and relocating.

Furthermore, as Portfolio points out, the upturn in demand has not resulted in a significant increase in prices thus far, which is advantageous for prospective buyers.

Budapest property prices exceeded psychological barrier
Photo: depositphotos.com

However, as we previously covered, property prices in Budapest present a different scenario: at the onset of 2024, they experienced significant growth. Consequently, in mid-March, the average price per square meter of a brick apartment in the capital surpassed the psychological threshold of HUF 1 million (EUR 2.533).

Despite historically low demand in 2023, prices in Budapest surged, indicative of a nine-year depression in the country’s real estate market last year. Notably, our article highlights stark price discrepancies among different districts within the city.

Read our other reports on the real estate market:

Positive changes at Lake Balaton: Far more holiday homes for sale than in 2023

Will the luxurious mini Dubai propel real estate prices to new heights in Budapest?

Mini Dubai: Draft intergovernmental agreement goes before Hungarian parliament

rákosrendező railway station intergovernmental agreement Mini-Dubai

The government will submit to parliament on Thursday evening a draft agreement between the governments of Hungary and the United Arab Emirates for the development of an area around the Rákosrendező railway station in Budapest, the ministry of transport and construction said.

The ministry said the development project would enable a full revamp of a 130-hectare area in central Budapest where currently 170,000 cubic metres of waste and dangerous waste pollute the environment and threaten the health of the current residents.

Draft intergovernmental agreement before parliament

Thanks to a 5 billion euro development, a new city centre can be developed with residential buildings, shopping centres, community areas and public parks, it added.

“The government will help the nearly 2,000 billion forint development which is considered timely and is therefore given priority status by adjusting the regulatory and taxation environments,” it said.

If parliament supports the agreement, it will guarantee a world-class development in a rustbelt area to be carried out in line with European and Hungarian laws, serving national interests and the benefits of Budapest and its residents, the ministry added.

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SHOCKING: Budapest property prices exceeded psychological barrier

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

The average sqm price of a Budapest brick apartment reached HUF 1 million (EUR 2,516), which means it exceeded a psychological barrier.

According to 444.hu, 2024 began with a property price rise in Budapest. In the first two months, the average sqm price of the brick apartments in the capital grew above HUF 1 million (EUR 2,516), Duna House told MTI, the Hungarian News Agency.

Of course, price differences between the districts are significant. Sqm prices vary between HUF 558 thousand (EUR 1,403) and HUF 1.3 million (EUR 3,270) based on the purchases of the first two months.

On existing apartments, buyers spent HUF 56.5 million (EUR 142,156) in Budapest. In most districts, HUF 40 million (EUR 100,000) was enough to buy a 40 sqm property.

Budapest property prices exceed psychological barrier

budapest_property_market
Photo: www.facebook.com/spiceofeurope/

Duna House highlighted that prices went up despite the low demand and number of transactions in 2023, both on the market of existing and newly-built apartments.

According to their data, the most affordable district of Budapest in January-February was the 19th, considering brick apartments (EUR 1,403). The most expensive (EUR 3,270) was the 1st district (where the Buda Castle and many other popular tourist hotspots are located).

A newly-built apartment’s price is above HUF 3 million in the 1st district (EUR 7,548).

Read also:

  • Shocking housing market trends: foreign renters drive up prices in Budapest? – Read more HERE
  • Helpful initiative: Budapest launches Home Agency to match renters with homeowners – Details in THIS article

Featured image: depositphotos.com

Shocking housing market trends: foreign renters drive up prices in Budapest?

Housing market Rent prices Budapest downtown

A recent assessment reveals the distinct housing market preferences among younger and older nationals, as well as between foreign and Hungarian residents. Tenants under the age of thirty prefer to live in the inner city, while the elderly tend to gravitate towards the outskirts. On the other hand, foreign tenants demonstrate a higher rental budget, which conversely drives up prices within Budapest’s central districts.

According to Pénzcentrum, a third of tenants renting via the real estate agency Otthon Centrum are under thirty, with a majority expressing a preference for central Budapest. In fact, one-third of all young renters opt for city centre living, while others mostly choose major urban centres across Hungary. In contrast, older renters typically seek accommodation in suburban areas.

In terms of overall tenant demographics in the Hungarian housing market, only 25 percent choose downtown Budapest, with 20 percent favouring other major cities and 16.5 percent residing in Buda. Approximately 10 percent pick the outer districts of Pest.

Foreigners in the housing market

In the last half a year, Otthon Centrum saw an approximate 4 percent rate of foreigners among their customers in the Hungarian housing market, most of them being Russians (almost 30 percent) and Iranians (17 percent). Around 11 percent of their tenants are Ukrainians and Egyptians, while there are also Austrian, Portuguese, Polish, South Korean and Israeli nationals renting in Hungary.

When it comes to their housing market preferences, foreign tenants prefer brick apartments in inner Pest or Buda, seldom venturing into the agglomeration. Moreover, they tend to allocate significantly higher budgets for rent compared to locals, with an average monthly rental expenditure of HUF 313,000 (EUR 787.96), surpassing the Hungarian average of HUF 213,000 (EUR 536.22).

Rent prices rising in Budapest

“Budapest is flooded with foreign tenants: it is no wonder that apartments are hard to find, and they are expensive too” – Pénzcentrum titled their recent article on the matter. Indeed, as we reported in February, The Economist identified Budapest as the most expensive European city for single-occupancy flat rentals.

While The Economist suggests that rental expenses should not exceed 30 percent of an individual’s gross income, Budapest surpasses this benchmark and has recently been labelled the most unaffordable city for those renting a place alone: the average income in the capital is barely half of what would satisfy this 30 percent criterion.

As Pénzcentrum further reported, rental prices in the capital soared to 190% of 2015 levels in February 2024, particularly in sought-after districts such as II, XI, and XIII, where rents averaged between HUF 240,000 and 335,000 (EUR 603.93 – 842.99) per month.

However, experts predict a potential slowdown in the rate of increase, as evidenced by a decrease in rental price inflation from 20 percent to 11 percent over the past year, with January and February of 2024 recording modest price hikes of 2 percent and 1.1 percent in the housing market, respectively.

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Helpful initiative: Budapest launches Home Agency to match renters with homeowners

budapest property real estate housing residential area university apartment hotel inflation

Budapest Mayor Gergely Karácsony announced the establishment of a city agency to match renters with homeowners at a press conference on Wednesday.

Karácsony said the city was working to “exploit hidden reserves”, adding that Budapest had a lot of vacant, unrented units, creating “waste and shortage” on the housing market at the same time. The mayor also said it was “very important” to increase the ratio of municipally owned rental units in the city.

Budapest Home Agency

The new Metropolitan Home Agency (Fővárosi Lakásügynökség) will ensure that rent and utilities bills are paid, taking on “practically all” of the risk related to renting out flats in the city, said Vera Kovács, the agency’s head.

Owners of flats between 20sqm and 100sqm, in good condition, are being invited to join the scheme. Soon, owners of flats in need of repair or renovation will also be allowed to register for the programme.

Karácsony’s Facebook post announcing the establishment of the agency:

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Featured image: depositphotos.com

From Beginner to Expert: Accelerating Your Success in Real Estate with Online Education

interior design living room

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In the fast-evolving world of real estate, staying ahead means constantly honing your skills, expanding your knowledge base, and adapting to the changing market dynamics. This is where online education steps in as a game-changer, especially for those enrolled in accredited real estate schools in New York. For individuals at the start of their journey or looking to scale new heights in their career, a real estate school in NYC that offers online courses can be the key to unlocking success. This article delves into how online education can transform beginners into experts, accelerating their success in the real estate industry.

The Rise of Online Education in Real Estate

The advent of digital technology has revolutionized many sectors, and real estate education is no exception. Online learning platforms provided by accredited real estate schools offer a flexible, accessible, and efficient way to gain the necessary knowledge and skills required in the real estate industry. Whether it’s mastering the fundamentals or diving into advanced investment strategies, online education caters to all levels of expertise and schedules.

Foundation Building for Beginners

For beginners, understanding the basics of real estate is paramount. This includes the principles of real estate law, property management, finance, and ethics. Online courses from an real estate school in NYC lay a solid foundation by covering these essentials in comprehensive modules, designed to take students from novices to knowledgeable practitioners ready to navigate the real estate market confidently. Interactive modules, virtual simulations, and real-world case studies facilitate a deeper understanding of course material, making the learning experience engaging and effective.

Flexibility and Accessibility

One of the most significant advantages of online education is its flexibility. Real estate professionals often juggle client meetings, property showings, and networking events. Online courses allow them to learn at their own pace, fitting education around their busy schedules without compromising their work commitments. Accessibility is another benefit, with courses available to anyone with an internet connection, eliminating the need to travel to physical classrooms and allowing learning from anywhere in the world.

Specialization and Niche Mastery

As real estate professionals progress in their careers, specializing in a niche market can set them apart from the competition. Whether it’s luxury residential properties, commercial real estate, or green and sustainable buildings, online education offers specialized courses that cater to various interests. These courses, provided by accredited real estate schools, enable professionals to deepen their expertise in specific areas, making them the go-to expert for clients and increasing their market value.

Staying Updated with Market Trends

The real estate market is dynamic, with laws, regulations, and market trends constantly evolving. Online courses offer up-to-date content that keeps professionals informed about the latest developments. This continuous learning is crucial for staying competitive and providing the best service to clients. Advanced courses cover topics such as digital marketing strategies, the impact of technological advancements on real estate, and emerging market trends, ensuring that professionals are well-prepared to meet the demands of today’s market.

Networking and Mentorship Opportunities

Contrary to the belief that online education is isolating, many real estate schools in NYC offering online courses also provide platforms for networking and mentorship. Discussion forums, webinars, and group projects connect students with peers and industry experts from around the globe. These connections can lead to mentorship opportunities, collaborations, and even referrals, enriching the learning experience and opening doors to new possibilities.

Real-World Application and Practical Skills

Online education in real estate is not just about theoretical knowledge; it also emphasizes practical skills essential for success in the field. From virtual reality property tours to simulations of negotiation scenarios, online courses equip students with the tools they need to excel in real-world situations. This hands-on approach ensures that students can apply what they’ve learned directly to their work, enhancing their effectiveness and efficiency.

Conclusion: A Pathway to Expertise

Online education offers a comprehensive, flexible, and efficient pathway for individuals aiming to accelerate their success in the real estate industry. From laying a strong foundation for beginners to facilitating niche specialization and keeping professionals updated on the latest trends, the benefits of enrolling in accredited real estate schools with online offerings are manifold. A real estate school in NYC that embraces online education is more than just a learning institution; it’s a launchpad for real estate professionals, propelling them from beginners to experts equipped to thrive in the competitive real estate landscape.

Online education in real estate is not just a stepping stone but a continuous journey of growth, adaptation, and success. By embracing the opportunities it presents, real estate professionals can ensure they remain at the forefront of the industry, ready to meet the challenges and seize the opportunities of tomorrow’s market.

Disclaimer: the author(s) of the sponsored article(s) are solely responsible for any opinions expressed or offers made. These opinions do not necessarily reflect the official position of Daily News Hungary, and the editorial staff cannot be held responsible for their veracity.

Luxurious Mini-Dubai in Budapest: Europe’s tallest tower and a shopping mall underway

skyscaper tower - Mini-Dubai project

At the forefront of the project dubbed Mini-Dubai, Emirati entrepreneur Mohamed Alabbar, owner of Eagle Hills Properties and the visionary behind the new five-billion-euro district planned for Rákosrendező, given his first statement on the details of venture.

The Khaleej Times reports not only on Europe’s tallest tower but also on a planned shopping centre and the development of a partly abandoned railway station.

Mini-Dubai project specifics

The mini-Dubai plans are attracting considerable attention, as investor Mohamed Alabbar was previously the builder of the world’s tallest and most famous building, the 828-metre Burj Khalifa.

“Eagle Hills Properties is excited about the opportunities that Hungary offers, a country known for its significant potential and rich cultural heritage. We are truly honoured to partner with them on this significant development,” said Mohamed Alabbar, President of Eagle Hills Group.

Alabbar said the project goes beyond mere real estate investment. It also shows their deep respect and admiration for Hungary’s historical significance, cultural life and future ambitions. He said the project will not only meet but surpass expectations.

Challenges ahead

As we previously reported, Minister of Foreign Affairs and Trade Péter Szijjártó had talks with UAE Minister of Foreign Trade Tani bin Ahmed al-Zejudi last Wednesday, during which the Foreign Minister hailed the development as a “flagship project”. Szijjártó remarked, “This vast urban development initiative will not only invigorate cooperation between our two nations but also propel the evolution of Budapest. It represents not merely a new, contemporary urban precinct but also a comprehensive urban development endeavour encompassing tourism, commerce, economics, and athletics.” Further details can be found HERE – Mini-Dubai: Hungary signs cooperation pact with UAE, EUR 5 billion

However, the plan, subsequently dubbed mini-Dubai or maxi-Dubai, has not garnered unanimous approval from the capital and its surroundings, with demands for multi-billion infrastructure enhancements in exchange. Nonetheless, site clearance has already begun.

  • Read also: Burj Khalifa is astonishing in the Hungarian national colours again – VIDEO

Cheap real estate: Romanians move to Hungary, own half the houses in this town

Hungary house real estate village garden rent Budapest agglomeration

In 2023, more than 300 houses were sold to Romanians in towns on the eastern border. Some work in Romania and live in Hungary, while others have moved to the country permanently. Hungarian towns on the border may see more and more Romanians arriving every year, as both the price of real estate and utilities are cheaper here than in their own country.

Világgazdaság spotted a video on a Facebook page titled “Timisoara, the European Capital of Culture”, in which a Romanian man claims to be driving in a small Hungarian town “where half the houses have been bought by Romanians.” The most liked comment under the video is from another Romanian and reads:

“I live in Battonya and am very happy. Utilities are cheaper than in Arad, it is clean and quiet here, the locals are nice people.”

Other commenters share the sentiment, with one person writing:

“This is exactly what the people from Nagyvárad do, too, half an hour from the Hungarian border. They are very satisfied, impeccable cleanliness, cultured village of Ártánd, Biharkeresztes…”

Real estate prices in Hungary vary

As we reported earlier, Hungary is one of the least desirable countries for real estate buyers in Europe due to steeply rising prices on the market. Indeed, in 2023, there was a 27% drop in the volume of real estate investment transactions compared to the previous year.

However, it seems that Romanians in particular are quite fond of Hungary, with many choosing to relocate to the other side of the border. Világgazdaság highlights the findings of the Romanian Digi24, which describes how interest in Hungarian real estate first peaked in 2007 after Romania joined the European Union. As prices remained relatively low in the area, business remained steady. In 2007, average house prices in local Hungarian towns were around EUR 2,500. Today, there are properties selling for EUR 10,000, but Világgazdaság quotes a real estate agent who just last year sold a 4,000-square-meter plot with a 100-square-meter, 3-bedroom property for the price of only EUR 5,000.

Border regions are appealing to Romanians

Located just a few kilometres away from the border, therefore very easily reached on the highway, the low prices and the good condition of the properties in these areas are appealing to Romanians looking to buy new homes. The pandemic played a crucial role in the housing market as well: many could work from home, which made moving across the border much easier. Another important factor is the price of utilities in Hungary, which might be as low as half of that in Romania.

Census data from 2022 shows that Hungary has a Romanian population of around 36,000 people, with most of them living close to the Romanian border, especially in Gyula and Battonya. In many cases, these communities have their own Romanian-language kindergartens and schools, as well as local Minority Self-Governments.

See our other reports on the real estate market in Hungary:

  • New survey: Hungary is among the least desirable countries for homebuyers – HERE
  • Positive changes at Lake Balaton: Far more holiday homes for sale than in 2023 – HERE

Positive changes at Lake Balaton: Far more holiday homes for sale than in 2023

lake balaton property real estate places to live

The Lake Balaton area is a huge favourite of expats when it comes to buying a holiday home in a calm environment, close to nature. A positive trend seems to be emerging, as the selection of holiday homes for sale in the area is getting larger.

There has been a significant increase in the supply of properties for sale on Lake Balaton, with 10-20% more properties for sale on both the north and south shores than this time a year ago. Prices have fallen in real terms over the past year, and even nominally on the south shore, Világgazdaság reports based on ingatlan.com data.

“There has been a significant increase in supply at Lake Balaton, while property prices are stagnating, the first signs of which were already visible in the summer of 2022, and the trend has been growing ever stronger since then”, summarised László Balogh, chief economic expert at ingatlan.com, the largest property advertising platform in the country.

Real estate development at Lake Balaton

Source: Bahart

The Balaton region is buoyed by the fact that in the last two or three years, a lot of real estate development has started. It also increases liquidity in the region that “when the economic or financing situation turns bad, most people put their second home on the market instead of their primary one, typically realising the value added on investment properties,” said László Balogh.

Supply has increased by between 10-20% on both the north and south coasts, and prices have also fallen in real terms over the past year. On the south coast, prices have also fallen in nominal terms, the expert pointed out. According to data on ingatlan.com, demand picked up in January-February compared to last year; however, it is not yet at the same level as in the first two months of 2022.

Only the areas not near the lake saw a decrease

Balatonalmádi
Balatonalmádi. Photo: FB/Balatonalmádi Város

Last year, there was a sharp drop in demand of almost 40% in the first two months of the year. This year, the number of enquiries has increased by 13%, but is still nowhere near the level of two years ago. Comparing last year’s data with the first two months of this year, it can be seen that interest has increased both on and around the south coast, the north coast and even around the Kis-Balaton region: 13-23% more people registered. Only the settlements around the north coast, i.e. not near the lake, showed a decrease.

The Balaton market has slowed down, but prices in some regions are still more expensive than in Budapest. The first signs of a slowdown were already visible in the summer of 2022, making the resulting increase in supply less of a surprise, according to the expert.

Why are so many holiday homes on sale at Lake Balaton?

Source: mavcsoport.hu

Real estate on Lake Balaton can be part of a family’s property portfolio. For many, it was an excellent investment between 2015 and 2022, Világgazdaság writes. The increase in supply is explained by the fact that sellers now want to realise the return on their investment and thus obtain cheap funds. Meanwhile, entrepreneurs who have invested the profits of their companies in property on Lake Balaton do not want to take out bank loans in the changed market environment and find cheaper financing here, according to ingatlan.com.

Balogh thinks it is unlikely that the price of property on Lake Balaton will be invested in foreign real estate, saying that the number of properties for sale in the region has increased not because of more attractive foreign markets, but for the previously mentioned reasons.

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Featured image: depositphotos.com

This is where rent takes the biggest part of the salary in Hungary

budapest_real_estate_building_flat rent autumn_panorama dnh_kató_alpár_

In recent years, rents in Hungary have gone through the roof. This is confirmed by the latest survey, which shows that in some places rent costs almost half of the average salary, while in others it is only a quarter.

In theory, the ideal housing situation would be if rents did not exceed 30% of tenants’ salaries. With this in mind, Ingatlan.com has analysed the rents of more than 14,000 rental properties in different parts of Hungary to find out how much of the average salary is needed to rent an apartment.

Rent situation in Budapest

There are significant differences in housing, no wonder. In the capital, on average 37% of salaries go on rent: the average gross salary was 697,000 forints (1790 euros), compared to 250,000 forints (642 euros) in mid-February.

The capital’s fifth district is particularly expensive, with 44 percent of the average salary: an average rent of 340 thousand forints (EUR 873) for an average salary of 779 thousand forints (EUR 2000). In districts XI and XIII, with the largest supply of rented accommodation, the ratio of rents to gross salaries is 30 and 31 percent respectively. With rents of 250 thousand forints, earnings were 841 thousand forints (EUR 2160) respectively. The cheapest district continues to be the 15th, where the average rent for a rented apartment is 24 percent of the local gross wage.

Rent situation outside Budapest

Székesfehérvár and Debrecen are the most expensive of the duchy towns, but even there the ratio is close to ideal, at 33-33 percent. Debrecen has a rent of HUF 200,000 (EUR 513) and an average salary of HUF 599,000 (EUR 1530), while Székesfehérvár has an average rent of HUF 205,000 and a gross average salary of HUF 620,000.

The ratio is more favorable in Veszprém, Győr and Pécs, where the rent of HUF 150-180 thousand is 26% of the average gross salary of the district, which is HUF 581-694 thousand. In Szolnok, Szekszárd, and Miskolc, one of the big university cities, rents are the cheapest in this comparison, at 18-20 percent. As a rent of 100-120 thousand HUF (EUR 256-310) can be financed from 539-553 thousand HUF gross (ca EUR 1420).

Based on official figures, but…

“If we look at the average rents in Budapest and in the duchies, the capital has the most expensive apartments for rent compared to the average salaries. However, when looking at the wage data for a given district, city or borough, it should be taken into account that although an increasing proportion of tenants are registering for the address, not everyone is doing so, so the latter’s salary data may not or not at all appear in the local earnings data,”

László Balogh, chief economist at ingatlan.com, was quoted as saying in the release.

As we wrote earlier, based on The Economist’s recently coined Carrie Bradshaw index, Budapest emerges as the priciest European city for solo flat rentals, details HERE.

The Economist: Budapest tops list for most unaffordable rental prices!

Based on The Economist’s recently coined Carrie Bradshaw index, Budapest emerges as the priciest European city for solo flat rentals.

According to Qubit, the Carrie Bradshaw index, introduced by The Economist in 2023 and inspired by the iconic character from the famous Sex and the City series, assesses the affordability of single occupancy flats.

In 2023, The Economist assessed the real estate landscape of the USA, and this year, they turned their attention to the European market, unveiling some startling findings.

Their analysis spanned from Ankara to Warsaw and included 35 European cities. The Economist asserted that no one should pay more than 30% of their pre-tax income to rent an average one-bedroom flat.

To facilitate comparisons, the paper converted income figures to USD. London and Geneva emerged as the two most expensive European cities, demanding a minimum annual income of USD 95,000 to secure the rental of an average one-bedroom flat. Conversely, at the other end of the spectrum lies the Turkish capital, Ankara, where a modest USD 18,000 annually is sufficient for a one-bedroom flat without compromising on essentials.

Budapest and several other CEE region cities deemed unaffordable

However, prices and incomes differ in Europe, which prompted the authors at The Economist to devise the Bradshaw scale. This adjustment factors in average wages relative to renters’ wages, with the wage being tied to the workplace location rather than residence. The Economist relied on open-source official data throughout this process.

The implications are rather gloomy concerning Budapest and Hungary. The Hungarian capital is at the top of The Economist’s latest index, signifying that individuals in Budapest must allocate the highest proportion of their yearly or monthly income towards rent. Consequently, Budapest stands out as the most unaffordable city for solo occupants who do not own an apartment.

Trailing behind the Hungarian capital are Prague and Lisbon. Within the CEE region, Zagreb, Bratislava, Sofia, Bucharest, Warsaw and Ljubljana all share the burden of hefty rental prices. Limited to Central and Eastern Europe, only Berlin and Vienna offer some relief to renters with their affordability.

The Economist underscores that the average wage falls short by half of what is required, which might be another contributing factor why tens of thousands of Hungarians seek work abroad. Notably, a record number of Hungarians have found employment in Austria, a trend covered in our previous article.

Read also:

  • Trend change: rental prices rise again in Hungary – Read more HERE
  • Mini Dubai to rewrite Budapest property market: what should we expect? – Details in THIS article

Mini Dubai to rewrite Budapest property market: what should we expect?

Budapest property market

As we reported, the so-called “mini Dubai” giga investment project is launching in Hungary. The Orbán cabinet is planning to carry out an 800-million-euro infrastructure development project in Budapest’s downtown, on the Rákosrendező site. The plans involve even the erection of a skyscraper not far from the Heroes’ Square. It already seems certain that the mini Dubai could well make property prices in the surrounding neighbourhoods skyrocket.

As reported by Daily News Hungary, the Rákosrendező project has reached a new phase. Last week MÁV Plc. initiated the termination of leases and other rights of use by order of the Ministry of Construction and Transport. It also called on the users of the properties left behind or erected without permission to hand over the area.

As the first serious steps have already been taken, it is increasingly certain that there will be a huge change not only in the cityscape of Budapest but also in the capital’s real estate market. Pénzcentrum asked real estate market experts what can be expected on the market for new-build apartments in Budapest if thousands of apartments flood the market as part of the project.

Price boom is still to come

The news of the investment has not yet caused a price explosion among properties in the Rákosrendező area, László Balogh, chief economic expert of ingatlan.com, said.

He added that, according to their data, the average price of used apartments and houses for sale in the Rákosrendező area is HUF 955,000/sqm (EUR 2457/sqm), which is 2.2% higher than in December last year. This 2% increase is slightly higher than the rate shown by the housing price index of ingatlan.com for the capital.

The average price per square metre of new homes is HUF 1.26 million (EUR 3242), roughly the same as in December 2023.

The price boom has not happened yet because the project has not even physically started, so its completion is still years away,

the expert stressed.

Value of the area expected to rise

When asked by Pénzcentrum about what can be expected in the area based on previous examples, he said that there have been few large investments in Budapest like the mini Dubaj project (also called the MaxiDubai project). However, when new neighbourhoods grow out of the ground, new housing and new commercial properties spring up, which usually adds value to the area.

“In addition to the Mol Tower project or the development of the Váci Street office corridor, thousands of new homes have been built in these neighbourhoods. The appreciation of some neighbourhoods is also due to the increased ability to pay of those buying new-build apartments or those working in a new premium office building,” László Balogh said.

For example, the average price per square metre of new-build apartments around the Mol Tower in Budapest has risen from HUF 1.1 million (EUR 2831) in April 2020 to HUF 1.7 million (EUR 4375) in February 2024,

he added.

According to Károly Benedikt, Head of PR and Analysis at Duna House, a price boom is a certainty in the future. “Essentially, a whole new neighbourhood is being built here with a lot of opportunities and available features,” he said.

Read also:

Trend change: rental prices rise again in Hungary

Property Budapest

Last year-end’s price decrease in the Hungarian rental market stopped, and the new year’s trend is quite the opposite: rental prices began to increase again. In January, the national average concerning the increase in rental prices reached 1.5%. Meanwhile, that rate was 1.9% in Budapest compared to last December. In an annual comparison, the national price rise was 13%, while in Budapest, it was lower, “only” 12%.

According to index.hu, the Hungarian rental market began the new year with a trend change. László Balogh, the leading economic expert of ingatlan.com, said they expected a price rise in early 2024 following last year’s fall. That is because of the rising salaries and the increasing real wages. That allowed apartment owners to ask more for property.

The Hungarian rental price index adjusted with inflation surpassed the 2015 level by 23%. In Budapest, it was 17% higher. The expert said the increasing rental prices may attract investors to the real estate market. As a result, even property prices may begin to rise again in Hungary.

In Budapest, the average rental price reached HUF 250,000 (EUR 642) per month in February. The most expensive district of the capital is the 2nd district with HUF 352,000 (EUR 904). The second and the third place went to the 5th and 1st districts. Both are in the heart of the city. The 1st district is the Buda Castle District and the area around it, while the 5th district is the historic town of Pest.

These are the most expensive Hungarian cities

But where can you find the highest number of flats to rent? In the 11th and 13th districts. In the former, the average is the Budapest average, HUF 250,000. In the latter, the average rental price is HUF 5,000 above that. The cheapest district in that respect is the 20th in South Budapest.

In big cities, the average rental price level went above HUF 200,000 in Debrecen and Székesfehérvár. Both are important industrial centres in rural Hungary. Debrecen is to host the new BMW plant, while Székesfehérvár has multiple companies. The third one is Győr with Audi, but the rental price is below that threshold at HUF 195,000 (EUR 500). The cheapest Hungarian city is Békéscsaba with only HUF 95,000 (EUR 244) per month.

Debrecen, Győr, Székesfehérvár and other expensive rural Hungarian cities are centres of higher education, too, which increases rental prices. In February, new programs started at the universities, which increased demand.

Banks offering better loans for homebuyers

Following the Hungarian National Bank’s base rate decrease in January, banks in Hungary gradually lowered their interest rates concerning loans for homebuyers, telex.hu wrote. In October, it stood at 8.5%, but from January, it decreased to 7.3%. In February, they went lower, and the current level is between 6.18% and 6.44%. That trend could also give a new boost to housing investments and the housing sector.

New survey: Hungary is among the least desirable countries for homebuyers

budapest real estate
A new study has named Hungary as one of the least desirable European countries for homebuyers, featuring in 1st place at the bottom of the list.
The team at 123Jaloezie have researched countries across the EU to reveal Europe’s property hotspots. Based on factors such as the number of property searches, property price index, and the increases in rent and property prices since 2015, combined to make a single ‘Property Hotspot Score.’
You can view the full research HERE.
The 10 least attractive European countries for homebuyers

Rank

Country

Rent change since 2015

House price change since 2015

Numbeo Property Prices Index 2023

Global Property Searches

Property Hotspot Score

1

Hungary

46.33%

154.35%

0.70

58,900

0.77

2

Lithuania

53.02%

95.05%

1.10

33,910

0.89

3

Czech Republic

22.30%

115.30%

0.90

50,730

1.16

4

Estonia

58.56%

86.76%

1.50

39,970

2.09

5

Poland

42.00%

65.21%

0.90

115,730

2.55

6

Slovenia

42.79%

73.65%

1.30

87,940

2.86

7

Austria

22.71%

70.77%

1.40

153,700

3.64

8

Slovakia

8.15%

75.47%

1.20

29,990

3.72

9

Romania

18.48%

43.70%

1.00

153,010

3.83

10

Portugal

15.79%

90.17%

1.20

800,280

4.47
  • Hungary is the least desirable country in Europe for homebuyers with a score of just 0.77 out of 10. This low score can be attributed to an incredibly high increase in property prices, which have more than doubled on average since 2015. There are also relatively few property searches focused on Hungary, with only 58,900 in the last twelve months.
  • Lithuania is the second least attractive European country for property searchers scoring 0.89 out of 10. Although property prices have not risen as much as in Hungary, in Lithuania they have almost doubled since 2015. There were just under 34,000 property searches targeting the country, the second lowest in the study.
  • The Czech Republic completes the bottom three with a score of 1.16. The combination of high real estate price increases, low relative affordability and few searches is only mitigated by the slower increase in rental prices in the country.
The research also revealed:

  • Italy is the Property Hotspot of Europe with a score of 8.81, making it the most desirable location for people looking for a new home. Italy recorded the lowest house price increase since 2015 at 6.90%. They also recorded very low average increases in rent since 2015 at 2.60%. Italy received more than 968,000 property searches in the past 12 months, indicating strong public interest.

    • Greece experienced the lowest increase in rental prices since 2015, average rent fell by 6.54% and is the only EU country to have a decrease in rent.
    • Belgium has the highest real estate price index score of 2.30. The higher the score in this index, the more affordable it is for the people who live there to buy or rent a home.

  • Zeeland is the property hotspot of the Netherlands with a score of 8.14, combining affordability with a 1.6% annual rent increase and an average property price of €326,521.

Read also:

  • Huge growth: Hungarian real estate market takes off in January – Read more HERE
  • Property and rental prices will boom in this Hungarian city

Huge growth: Hungarian real estate market takes off in January

Hungary real estate market Budapest

The Hungarian real estate market started the year actively, with turnover 43% higher than a year earlier. Meanwhile, the mortgage loan amount showed an even more dynamic growth of 80%, according to real estate agency Duna House.

Duna House’s estimate of 8354 transactions in January indicates an increase of 6% compared to December and 43% compared to January 2023, Üzletem.hu reports.

The active start to the year can be explained by the postponement of transactions from last year and the deliberate preparation of transactions for January, the sales generated by the new, expanding home purchase incentives and the rising confidence due to the declining interest rate environment.

According to Duna House, both home buyers and sellers can expect an increasing real estate market in the first quarter, which may be further strengthened by the declining interest rate trajectory and the availability of loan rates below 6%.

Budapest property real estate market
Photo: facebook.com/bkkbudapest

According to domestic data from Credipass, the Duna House Group’s international financial brand, the credit market continued to strengthen in January after an active year-end. Credipass estimates a contracted volume of HUF 73.5 billion in residential mortgage loans for the first month of the year, an increase of 80% year-on-year.

In January this year, the impact of the renewed home purchase subsidies on demand is clearly being felt. The Duna House Demand Index (Keresletindex) almost doubled compared to the end of last year, rising from 45 to 87.

Nationally, customers were more likely to buy properties in good condition in the first month of the year. With the exception of Western Hungary, where the second most sought-after property condition was the habitable category, in all areas, very good condition was preferred after good condition. Based on sales data, the proportion of properties to be renovated was weakest in the East, with the strongest propensity to renovate in the West at 13%.

Budapest vs countryside; investment vs first home

Among those buying a property in the capital, the majority of those buying a property were those aged 30-40, at 24%. The main buyer motivation was investment, at 36%, and the proportion of first-time buyers increased by 1 percentage point compared to last year. Customers spent HUF 57.7 million on investment and HUF 38.9 million on their first home.

In rural areas, first-time homebuyers outpaced investment buyers in terms of buyer motivation, with a 26% presence, and their activity declined by 13 percentage points compared to the same period last year. First-home buyers spent HUF 30.6 million on property, while investment buyers spent HUF 27 million.

Read also:

Surge in foreign investors expected in Hungary’s real estate market

the most expensive street in hungary budapest

An analysis conducted by ingatlan.com indicates that in 2024, a surge of foreign investors may emerge in the Hungarian real estate market due to a new regulation. This could impact residential properties priced at more than EUR 500,000.

There was a 27% drop in the volume of real estate investment transactions in 2023 compared to 2022. The reason behind this drop was mostly because of the inflation and the increase in raw material prices in the construction sector. The cost of capital has increased, and there is still a wide gap between buyers’ and sellers’ expectations. According to Portfolio, a slow recovery in the real estate market is forecast from the second half of 2024 to 2025. The recovery of the real estate market could be one of the reasons why the government chose to change its regulations.

The analysis shows that the interest in residental properties for sale in Budapest, within the price range of HUF 200-500 million (EUR 520,000-1.3 million), increased by 16% in January compared to a year earlier. However, in the county seats, the increase was 25%. Meanwhile, a decline was seen in the top category of properties between HUF 500 million and HUF 5 billion (EUR 1,3 million – 13 million), according to Telex.

According to another analysis which was conducted by Duna House, real estate prices increased by an average of 10% last year compared to 2022. The average price per square metre of real estate in six districts of Budapest reaches HUF 1 million (more than EUR 2600), while it takes 11.7 years to buy a large apartment in the Hungarian capital. Nevertheless, the rental market situation in Budapest, which be could affected by these new changes by the government, is experiencing a significant surge. Various factors also play a crucial role in shaping rental prices in the Hungarian capital.

Read also:

  • Unbelievable: rental prices sky-high in Budapest, here is why – Read HERE
  • BREAKING: Budapest public transport monthly pass price falls from 1 March! – Read HERE

The reason behind the increase

Behind the move is the new legislation that allows non-EU residents to obtain a visitor investor visa. This can be achieved by either purchasing residential property for at least EUR 500,000 or buying at least EUR 250,000 worth of units in real estate funds registered with the central bank, according to László Balogh, an economic expert at ingatlan.com.

“Similar regulations are in place in several EU countries. In Hungary, the minimum threshold for buyin a home is EUR 500,000 (HUF 190-200 million) which covers the upper end of the domestic property market. There are currently more than 8,500 residential properties on offer that meet these criteria,” László Balogh stated. According to their data, most foreign home buyers continue to come from EU countries. Among the non-EU locations, the US, the UK, Turkey, Indonesia and Switzerland received significant number of inquiries for residential properties for sale last year.

The situation in the real estate market is looking good since the number of people interested in properties at the price range of HUF 200-500 million in Budapest rose by 16% year-on-year, and by 25% in the county seats. Meanwhile, smaller towns and villages, where there are relatively few such properties, have seen a decline, according to Portfolio.