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New Hungarian real estate trend: Slowly shifting to euro pricing?

Foreign-buyers-reappear-in-the-Hungarian-real-estate-market Hungarian real estate market

The Hungarian real estate market is increasingly embracing euro pricing, especially for high-value properties in prime areas like Budapest’s city centre. As the forint weakens, sellers and investors are turning to the euro for stability in transactions.

A growing preference towards euro

As Pénzcentrum reports, The rise of euro-based property ads in Hungarian real estate has been linked to the forint’s weakening exchange rate. Experts, including Zsuzsa Lipták of zenga.hu, note that sellers increasingly favour euro-paying buyers, even when prices are set in forints, particularly in high-value areas like Budapest’s city centre and the Buda Hills. Some developers are now pricing properties exclusively in euros, a trend also seen in sectors like car sales. While the euro isn’t the country’s official currency, its growing use in Hungarian real estate reflects the challenges posed by the forint’s instability.

Spontaneous euroisation Budapest rent prices property market prices exceeded property in hungary renting in Hungary news rental — Photo: depositphotos.com

Pricing properties in euros

In the Hungarian real estate market, the trend of pricing properties in euros is becoming more prominent, particularly for high-value and luxury properties. According to Ferenc Máté, Deputy CEO of Duna House, 3% of current property listings are advertised in euros, with most over EUR 100,000. Due to the forint’s instability, sellers are increasingly favouring buyers willing to pay in euros, even if the original price is set in forints.

While euro-based rentals are more common for luxury apartments in prime areas, such as Budapest’s city centre and Buda Hills, they are less frequent in the wider rental market. This shift highlights the growing preference for the stability of the euro. However, experts suggest it remains more typical for high-end properties, with standard apartments still predominantly priced in forints. The trend also reflects changes in buyer behaviour, with foreign buyers and those in the western regions of Hungary more likely to encounter euro-based transactions.

Rent prices in Budapest reached a psychological barrier Budapest's rental market — Source: depositphotos.com

High-end homes in Budapest

The Hungarian real estate market isn’t showing a strong shift towards euro pricing just yet, according to ELTINGA. Their data highlights that euro pricing is mainly seen in smaller, high-end developments in central locations. The latest Budapest Housing Market Report notes that only six residential projects in the city currently advertise prices in euros or factor in exchange rate changes between the euro and forint. These projects are in sought-after areas of Budapest’s 2, 7, 11, and 12 districts, including Endrődi38 Residence, Limetree Residence, Essence of Gellért, Eötvös12 Villa Park, and Diana Condominium. However, these developments represent just a tiny fraction of the overall new-build housing supply in the city.

What about rentals?

In the Hungarian real estate market, around 15% of rental properties are advertised in euros, while euro pricing is far less common for properties listed for sale, according to Zsuzsa Lipták, managing director of zenga.hu. Among homes for sale in euros, 26% fall between EUR 200,000 and EUR 500,000, while 33% are priced above EUR 500,000—making these two categories 60% of the market. For rentals, 40% are listed at EUR 200–500, with nearly 30% advertised at EUR 1,500 or more.

Investors often calculate in euros, but Hungarian sellers tend to prefer forints, partly due to the complexity of euro transactions and the need for specialised accounts. Some rentals to foreign tenants, paid in euros, remain off the books, contributing to the grey market. The number of euro-priced listings surged in October and November, likely tied to euro exchange rate fluctuations, with high-end properties seeing the most growth.

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January 10, 2025

Budapest’s housing crisis in focus: What about the worsening situation in Debrecen?

As Hungary’s housing crisis dominates the headlines, the focus remains firmly on Budapest, where rental costs consume up to 60% of monthly incomes. However, the overlooked city of Debrecen faces its affordability struggles, with a house price-to-income ratio consistently worse than the capital’s for much of the past decade.

Everyone focuses on Budapest

As G7 writes, the housing crisis in Budapest has reached critical levels, with rental costs consuming 50–60% of monthly incomes, according to Hungary’s Ministry of National Economy. Responding to Airbnb’s call to protect hosts’ rights, the Ministry of National Economy attributed surging property and rental prices partly to Airbnb-driven investments.

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

To tackle affordability, the government unveiled plans to ban new short-term rentals in Budapest for two years starting in 2025, quadruple flat taxes on private accommodations, regulate rental fees, and revive the stalled Budapest Diákváros dormitory project. Critics argue the government’s sudden focus is politically motivated, with elections looming in 2026, and point to its prior neglect of the housing crisis. Meanwhile, opposition leaders, including Gergely Karácsony, face accusations of failing to fulfil earlier housing promises, adding to the contentious debate.

Debrecen remains overlooked

The Hungarian National Bank’s latest report on the housing market challenges the government’s focus on Budapest’s housing crisis, revealing nuanced data on affordability across Hungary. While Budapest has seen significant price increases in recent years, affordability has improved since 2021, with the capital’s housing market faring better than several European cities like Berlin and Sofia. Interestingly, Debrecen, often overlooked in government narratives, has a house price-to-income ratio that has consistently been worse than Budapest’s for much of the past decade. Additionally, while rents remain a concern in Budapest, the affordability of rental properties compares favourably internationally. This highlights the complexity of housing challenges across Hungary and raises questions about the government’s selective prioritisation of affordability issues.

Mind-blowing increases in 2025

Housing affordability in Hungary, including in Debrecen, faces potential challenges by 2025, with experts predicting property price increases of up to 20%, outpacing projected wage growth of 7–8%. This trend, highlighted by Habitat, underscores the need for systemic solutions rather than short-term fixes. The NGO advocates for targeted support measures, such as rent subsidies, municipal housing, and strengthening social rental systems, to address the disparity between rising housing costs and slower income growth. Without sustainable reforms, affordability issues will likely persist, affecting cities like Debrecen as much as Budapest.

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Featured image: depositphotos.com

December 9, 2024

Shocking: Renting in Hungary’s cities leaves workers empty-handed!

From 2025, the minimum wage in Hungary will increase by 9%, resulting in a net monthly income of HUF 193,300 (EUR 466). However, this remains far from sufficient to cover the cost of renting an independent apartment in Budapest or other urban centres.

In addition to housing, basic expenses such as food, utilities, and transport place a significant strain on budgets. Consequently, most minimum wage earners are left with options such as room rentals or living arrangements that involve substantial compromises.

Housing Renting Rental Market — Source: Pixabay

Renting in Budapest and minimum wages

Renting a single room in Budapest currently costs between HUF 45,000 (EUR 108) and HUF 130,000 (EUR 313), with the average hovering around HUF 98,000 before utilities are added. According to Pénzcentrum, with a budget of HUF 97,000 (EUR 233), renting a room is nearly the only viable option, while independent living is restricted to lower-quality or peripheral micro-rentals. In smaller cities, the situation is slightly better; modest apartments can be found within this price range, though they still require considerable compromises.

Sharing the cost of renting an apartment is becoming increasingly common. For instance, a two-room apartment in the outer districts of Budapest can cost around HUF 200,000 (EUR 482) per month, meaning two people could pay less than HUF 100,000 (EUR 241) each. However, this arrangement is far less affordable in the inner districts or more desirable neighbourhoods, where similar apartments command significantly higher rents.

Couples earning the minimum wage may find larger apartments slightly more attainable, though they still need to compromise on size or location in Budapest. Two people earning around HUF 190,000 (EUR 458) each can primarily afford to rent on the outskirts of the capital. In rural areas, two-room flats are more accessible and provide a slightly easier route to decent housing.

Those earning the guaranteed minimum wage (requiring at least secondary education) of HUF 232,000 (EUR 559) net have slightly more options, though these are still limited. In Budapest, the average monthly rent for a one-bedroom apartment is approximately HUF 178,000 (EUR 429), leaving just enough for utilities. In smaller cities, the situation improves somewhat: one-bedroom flats in regional centres often rent for around HUF 126,000 (EUR 303), allowing greater financial flexibility.

Trends in the rental market

Rental prices are expected to rise by 5–10% in the coming year, further restricting options for those on minimum or guaranteed minimum wages. The supply of affordable housing on the national rental market is already minimal, with most options concentrated in Budapest and county cities. While smaller towns offer lower prices, the limited availability of housing presents a significant challenge.

Most tenants seek furnished, equipped apartments of at least 40 square metres. Flats in the HUF 200,000 (EUR 482) range remain the most popular at the upper end of the market, while those on tighter budgets are largely limited to renting rooms or shared flats.

Despite increases in minimum and guaranteed minimum wages, the housing affordability crisis remains unresolved. Rising rents and limited supply will continue to burden low-income earners, particularly in Budapest and larger cities. For many, shared accommodation or cheaper rentals in smaller municipalities will remain the only practical solutions.

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December 3, 2024

Hungarian government implements two-year moratorium on Airbnb in Budapest to address housing crisis

airbnb short term rental budapest tourism Airbnb in Budapest

The Hungarian government has unveiled bold new measures to address Budapest’s housing crisis, including a two-year moratorium on new Airbnb rental registrations. As part of a sweeping economic policy plan, the move aims to curb the impact of short-term rentals on the city’s strained long-term housing market while introducing higher taxes for Airbnb operators and stricter regulations on property investments.

Fighting a housing crisis

As Index reports, the Hungarian government has announced a two-year moratorium on new Airbnb-style short-term rental registrations in Budapest, effective 1 January 2025. Under this regulation, no new private or other short-term accommodation will be permitted in the capital until 31 December 2026. The move aims to address the strain on Budapest’s long-term rental market, as nearly 18 per cent of the city’s 800,000 households currently rely on long-term rentals—a figure high by international standards. Officials argue that the proliferation of short-term rentals has significantly impacted housing availability.

The moratorium is part of the government’s 21-measure New Economic Policy Action Plan, which seeks to achieve a 3-6 per cent economic growth rate in 2025. By tightening rules on Airbnb in Budapest, authorities hope to alleviate the housing crisis while boosting economic stability. The policy reflects growing concerns over how short-term rental platforms are reshaping urban housing markets and will be closely watched for its broader effects.

Increase in Airbnb taxes

The new legislation will also see a sharp increase in taxes for Airbnb-type rentals in Budapest, with the annual flat tax per room set to quadruple from HUF 38,400 (EUR 92.79) to HUF 150,000 (EUR 362.45) starting in 2025. This marks the first adjustment in seven years and is part of broader efforts to regulate short-term rentals in the capital. While rural areas will remain unaffected, Budapest’s housing market has seen a notable impact from the nearly 26,000 rooms currently offered as short-term rentals. Officials attribute the housing shortage in part to this expansion, which has strained long-term rental availability for the city’s 140,000 households relying on such accommodation.

What does the Budapest Mayor have to say about this?

Budapest Mayor Gergely Karácsony has highlighted multiple factors contributing to the city’s housing crisis, including insufficient municipal rental housing, unregulated Airbnb operations, and investment-driven housing purchases by foreign buyers. Currently, only 4 per cent of flats are municipally owned, often in poor condition or segregated areas. To address these challenges, the Mayor proposed a two-year moratorium on property purchases by non-European Economic Area citizens, which the Municipal Assembly approved in October. Additionally, Karácsony has advocated for building rental housing, expanding dormitory accommodation, and introducing stricter regulations on Airbnb in Budapest as part of a broader ten-point housing reform plan.

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Featured image: depositphotos.com

November 28, 2024

Here are the top Hungarian cities for expats seeking a new home

expats in Hungary Budapest Hungarian cities compared

As expats consider relocating to Hungary, the choice of city can significantly impact their experience, with various factors playing a crucial role in the decision-making process. In this article, we delve into some important aspects of Hungarian cities such as Budapest, Szeged, Debrecen, Győr, and Pécs, comparing rent prices, higher education opportunities, public transport costs, and leisure activities. However, the final decision on where to settle will hinge on personal sentiments and preferences.

Rent in the most popular Hungarian cities

Based on the Hungarian Central Statistical Office (KSH)‘s statistics, the average rent prices in the most-liked Hungarian cities reveal significant disparities. In Budapest, the average monthly rent is approximately HUF 259,000 (EUR 630.95), making it the most expensive city in the country. In contrast, Debrecen has a slightly lower average rent of around HUF 220,000 (EUR 535.94), while Győr follows closely with rents averaging HUF 176,000 (EUR 428.75). Szeged offers a more affordable option, with average rents around HUF 200,000 (EUR 487.21), and Pécs is among the least expensive, with rents averaging HUF 195,000 (EUR 475.03). This comparison highlights Budapest’s high rental costs compared to other cities, which provide more budget-friendly living options for expats.

Monthly public transport pass

The prices for a monthly public transport pass for adults vary across Hungarian cities. In Budapest, the cost is HUF 8,950 (EUR 21.80), allowing unlimited travel on all public transport within the city. Debrecen offers a slightly cheaper monthly pass, priced at around HUF 8,650 (EUR 21.07). In Szeged, the monthly pass costs about HUF 8,800 (EUR 21.44), while in Pécs, it is slightly lower at HUF 7,300 (EUR 17.78). Győr has the most economical monthly pass at HUF 5,600 (EUR 13.64)

Higher education

When considering higher education opportunities in Hungarian cities, Budapest, Pécs, Debrecen, Szeged, and Győr each offer unique advantages that cater to a diverse student population. Budapest, as the capital, is home to some of the country’s most prestigious institutions, including Eötvös Loránd University, Semmelweis University and Corvinus University, attracting a significant number of international students with a wide array of English-taught programmes. Szeged is home to the highly regarded University of Szeged, known for its strong emphasis on research and a vibrant student life, making it a popular choice among both local and foreign students.

In Debrecen, the University of Debrecen offers a comprehensive selection of courses and is particularly noted for its contributions to agriculture and medicine, while also maintaining a welcoming environment for international students. Pécs, with its historic university founded in 1367, provides a rich academic tradition alongside modern facilities, fostering an inclusive atmosphere for study. Lastly, Győr is home to Széchenyi István University, which focuses on engineering and applied sciences, offering practical training opportunities through strong industry connections.

chinese student foreign — Photo: Illustration/Pixabay

Leisure activities and fun

While all of the points mentioned above play a crucial role in deciding which city is the perfect match for you, you probably do not want to spend your time in Hungary all cooped up in your room. Therefore, it is also important to take into consideration what opportunities you have outside your home to have some fun after an exhausting day. When exploring leisure activities, nightlife, and pubs in Hungarian cities, Budapest stands out as the epicentre of vibrant nightlife, offering a diverse array of ruin pubs, clubs, and bars that cater to all tastes.

Szeged boasts a lively student scene with numerous bars and cafés, particularly around its university, where young people gather for casual drinks and socialising. Debrecen offers a more laid-back nightlife experience, with popular local pubs and clubs that foster a friendly community vibe. Pécs, known for its rich history, features charming bars that often host live music and cultural events, creating a relaxed yet engaging atmosphere. Finally, Győr combines historical charm with modern nightlife options, where visitors can enjoy a mix of traditional pubs and contemporary bars. Thus, each of these Hungarian cities provides plenty of fun options for a night out.

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Featured image: depositphotos.com

November 22, 2024

Living in Hungary: Insights from expats on what they enjoy and what they don’t

Young foreigners in Hungary Budapest tourists living in Hungary

Dreaming of a fresh start abroad? For many expats, living in Hungary—particularly in the vibrant capital of Budapest—has become a top choice. With affordable housing, remote work opportunities, and a rich cultural tapestry, it is easy to see why this city is capturing hearts worldwide. Discover what is drawing people to call Budapest home.

Cheap rent and food

As Femina writes, living in Hungary offers expats a smart financial move, especially in bustling Budapest. With rents and food prices significantly cheaper than in Western Europe or the US, the city attracts remote workers and professionals earning competitive Western salaries. While housing costs are rising for locals, foreign incomes often make Budapest’s varied rental options—cosy flats in Buda or modern city apartments—affordable. Unlike overcrowded cities such as London, where soaring rents are pushing people out, Budapest remains an appealing haven for those seeking a better standard of living without breaking the bank.

According to Expat Arrivals, one of the joys of living in Hungary is enjoying delicious food without spending excessively. While food prices may feel steep for locals, they remain affordable for expats from countries such as the US, France, or Italy. Budapest’s vibrant markets, brimming with fresh, locally grown produce, offer a taste of Hungary’s best at wallet-friendly prices. For expats, it is a culinary haven where quality meets affordability.

market újpest hungary price vegetable fruit food — Local market in Újpest, Budapest. Photo: Daily News Hungary

Not speaking the language?

Living in Hungary doesn’t mean you must master the local language to get by—particularly in Budapest. With many companies operating in English, industries such as IT and customer service actively seek international talent. English speakers bring fresh perspectives and innovative ideas, making them highly desirable to employers. Universities abroad continue to supply skilled professionals, ensuring expats are warmly welcomed into Hungary’s vibrant labour market.

Tourism and travelling

Living in Hungary, particularly in the capital, means immersing yourself in a city brimming with culture and charm. From stunning architecture and lush green spaces to world-class museums and vibrant art festivals, there is always something to experience. Moreover, Budapest’s central location in Europe makes it a traveller’s dream, with easy and affordable access to cities such as Vienna, Ljubljana, and Prague via train or bus. Add to that its reliable and budget-friendly public transport, and it is no wonder Budapest is a magnet for culture lovers and adventurers alike.

travel in Hungary train MÁV station train in Hungary railway — Source: Pixabay

The cons of living in Hungary

While living in Hungary has its perks, expats should be aware of some challenges. The education system can be tough for foreign families, with limited options and high private school fees. Similarly, healthcare often drives expats to opt for costly private providers. On top of this, Hungary’s love for paperwork can make navigating bureaucracy feel overwhelming. Despite these hurdles, many find the benefits of living in Hungary outweigh the drawbacks.

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Featured image: depositphotos.com

November 15, 2024

Airbnb letter: Tighter short-term rental rules serve to ease Budapest housing problem, says ministry

Budapest property real estate market housing

The National Economy Ministry responded to “misleading” points made in an open letter from Airbnb to the head of the portfolio, Márton Nagy, in a statement issued on Thursday.

The government recently announced an increase in the annual room tax on short-term rentals in the capital from HUF 38,400 to HUF 150,000 and rolled out a two-year moratorium on the registration of new Airbnb-type accommodations from the start of 2025 in the interests of “managing the housing crisis” in Budapest, the ministry noted. (Related: Airbnb pens open letter to Hungarian economy minister)

Terézváros Airbnb Budapest — Photo: FB/Soproni Tamás

Making a case for the measures, the ministry said the number of short-term rentals in the capital had climbed by 80pc between 2020 and 2024 and now stood close to 26,000. Those flats account for over 40pc of the guest nights registered in the capital, well over the 28pc average for capitals in the region, it added.

Parallel with the rise in homestays, rents have climbed over 40pc since the pandemic and now eat up as much as 50pc-60pc of occupants’ monthly incomes, the ministry said. Short-term rentals also “restrict the right to private life” of local residents, especially in the capital’s central districts, it added.

The ministry noted that the new rules apply only to short-term rentals in the capital.

Public consultation for new home renovation grants in small settlements

The National Economy Ministry and the Culture and Innovation Ministry on Thursday announced the start of public consultations on a programme to support home renovations in Hungary’s smallest settlements.

Under the programme, to launch from the start of next year, families with children in settlements with fewer than 5,000 residents may apply for up to HUF 3m of grant money to cover half of the cost of home renovation projects.

Around 400,000 families in some 2,900 settlements are eligible for participation in the scheme.

Ingatlan.com: Home prices rise 10pc in October

Home prices in Hungary rose 10pc year-on-year in October, listings site ingatlan.com said on Thursday.

Home prices in the capital came close to HUF 1,100,000/sqm, with new homes going for HUF 1,350,000/sqm and resale homes for HUF 1,080,000, on average.

In Debrecen, Hungary’s second-biggest city, home prices averaged HUF 853,000/sqm.

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November 14, 2024

Airbnb pens open letter to Hungarian economy minister

Airbnb has addressed an open letter to Hungarian Economy Minister Márton Nagy, urging recognition of home-sharing’s economic benefits amid a government plan to pause new Airbnb permits in Budapest for two years. The company highlighted the significant contributions of short-term rentals to the national economy while warning that sweeping restrictions could harm local hosts’ income and the broader economy. Airbnb also voiced support for EU regulations that encourage balanced, evidence-based policies.

According to Portfolio’s report, during the European Tourism Forum held in Budapest, Airbnb addressed an open letter to Márton Nagy, the Minister of National Economy, urging recognition of the positive economic impact of home-sharing at both local and national levels. This comes after the minister’s mid-October announcement at a Portfolio conference that the government would impose a two-year moratorium on new Airbnb permits in Budapest (read more HERE.) Airbnb’s letter emphasised the importance of allowing Hungarian hosts to continue renting their homes, particularly during economically challenging times.

Airbnb’s open letter to Márton Nagy

airbnb short term rental budapest tourism — Photo: depositphotos.com

Airbnb highlighted that Hungary remains a significant destination for both European and international visitors. The short-term rental market, according to the company, delivers undeniable benefits to the national economy.

Data from last year revealed that guests using short-term rentals contributed approximately EUR 1.5 billion to Hungary’s GDP and supported around 40,000 jobs.

The letter also warned that disproportionate and hasty restrictions could severely limit the income opportunities of local hosts and their families. Airbnb’s research and global experience suggest that blanket prohibitions often fail to achieve their intended goals while potentially harming local economies and hosts reliant on this revenue stream.

Acknowledging the complex challenges faced by cities, including the balance between tourism growth and community needs, Airbnb expressed support for the EU’s newly implemented short-term rental regulations. These rules are designed to help authorities establish fair, evidence-based policies that foster tourism growth while protecting community interests, such as housing availability.

While only Budapest’s District VI. has passed a complete ban on short-term rentals—set to take effect in early 2026—the citywide moratorium will impact new permit registrations for 2025 and 2026. Currently licensed units in other districts will continue to operate without disruption.

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Featured image: depositphotos.com

November 14, 2024

Budapest’s real estate market set new record in October

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

Budapest’s real estate market witnessed a record number of homebuyers purchasing for investment purposes in October. The effects of the recent restrictions on short-term rentals can already be felt. Thus, there is a slight shift in the top preferred areas in Budapest. Rental prices seem to stabilise.

Budapest’s real estate market sees new record

As Telex reports, Budapest’s real estate market experienced robust growth in October, with Duna House estimating 10,738 property transactions—a 10% increase from the previous month and a significant 37% rise compared to the same period last year. This surge, driven by strong buying and selling activity, suggests an active period ahead for both the real estate and mortgage markets. Investment in Budapest has hit a new high, with 40% of buyers purchasing properties for investment purposes, spending an average of HUF 58.7 million (EUR 143,000) per transaction.

Budapest rent prices property market prices exceeded property in hungary renting in Hungary rental — Photo: depositphotos.com

The top areas

Budapest’s real estate market has seen notable shifts in recent months, with districts on the Buda side, particularly Újbuda and District 2, attracting increased interest. However, District 13 is currently the top choice for investors, capturing 19.4% of buyer interest. The recent restrictions on short-term rentals, such as Airbnb, have further decreased demand in central areas like Erzsébetváros and Terézváros. This policy change has been advantageous for prospective residents but poses challenges for property sellers in these districts.

Current trends regarding the pricing

In terms of property prices, Budapest’s real estate market continues to climb. October data shows double-digit annual growth in the capital’s panel flats, where sellers remain firm on guide prices, allowing only 2-4% room for negotiation. Buyers paid an average of HUF 873,000 (EUR 2,130) per square metre for factory apartments in Buda, while similar units in Pest were slightly lower at HUF 773,000 (EUR 1,886).

Brick apartments saw even higher averages, exceeding HUF 1.2 million (EUR 2,928) per square metre in Buda, close to HUF 1.1 million (EUR 2,684) in Pest’s centre, and around HUF 779,000 (EUR 1,901) in outer Pest. In the countryside, first-time home buyers and investors were equally active, spending on average HUF 35.5 million (EUR 86,611) and HUF 30.9 million (EUR 75,388) respectively.

budapest hungary real estate flat — Photo: Alpár Kató – Daily News Hungary ©

Rental prices

Budapest’s real estate market is showing signs of stabilisation in rental prices, according to the latest KSH-ingatlan.com rent index for October. Despite the recent surge in rental demand, rising rent prices have slowed, with average rents in Budapest holding steady and even dropping slightly nationwide. Chief economist László Balogh suggests that tenants may be reaching the limits of affordability.

Rental supply has also increased, with the average rent in Budapest standing at HUF 250,000 (EUR 610) in early November, varying between HUF 160,000 (EUR 390) and HUF 340,000 (EUR 830) by neighbourhood. Among other cities, Debrecen has the highest rents outside Budapest at HUF 230,000 (EUR 561), followed by Győr at HUF 200,000 (EUR 488), while Miskolc offers more affordable options at roughly half the price of Debrecen.

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November 12, 2024

Renting in Hungary: These are the most important things you should know as a foreigner

Embarking on the journey of renting in Hungary offers an exciting chance to experience a vibrant culture, but it also brings unique challenges for newcomers. From navigating local rental norms to spotting potential scams, understanding the essentials of Hungary’s rental market is key to a smooth transition. Here’s a comprehensive guide to help you confidently secure the right home, avoid common pitfalls, and settle in with ease.

Rental agreement

Quite self-explanatory, but having a rental agreement is a must when renting in Hungary, as it protects both parties in various ways. Always ensure you sign a written rental agreement, as verbal agreements are not legally binding in Hungary. The contract should clearly outline the terms of the lease, including duration, rent amount, and responsibilities of both parties. Having a formal agreement protects your rights as a tenant.

Deposit and rent

When renting an apartment in Hungary, it’s standard to pay a deposit ranging from one to three months’ rent, along with the first month’s rent upfront. This deposit acts as security for potential damages or unpaid rent. To avoid disputes over the deposit when you move out, thoroughly document the apartment’s condition upon move-in, ideally with photos or videos. This practice is especially important for anyone renting in Hungary to ensure a smooth reclaiming process.

Utility costs

Rental prices in Hungary usually do not include utility costs, such as electricity, gas, water, and internet. It’s essential to clarify with the landlord what costs are covered by your rent and what additional expenses you can expect. Discussing these in detail before signing the lease allows you to budget more effectively and avoid surprises down the line.

Property ownership verification

Before signing a lease, request to see the property’s title deed or proof of ownership. Verifying that the landlord is the legitimate owner, or at least authorised to rent out the property, can protect you from potential scams. Property ownership verification is especially recommended for those new to renting in Hungary, as it reduces the risk of legal issues related to unauthorised rentals.

Bilingual contracts

In Hungary, having your lease agreement in both Hungarian and English is invaluable for clarity. If you are not fluent in Hungarian, consider having a bilingual friend or professional translator review the lease to ensure that you fully understand your rights and responsibilities. This is a critical step in avoiding misunderstandings while renting in Hungary.

Avoiding scams

Avoid rental scams by refraining from making payments until you’ve viewed the apartment and met the landlord in person. Listings that seem unusually cheap or landlords who push you to make quick decisions can be red flags. Take your time, conduct thorough research, and trust your instincts to make safe decisions when renting in Hungary.

Common costs

In addition to the rent, you may be responsible for condominium fees, which cover shared building maintenance and other services. These fees vary depending on the building’s amenities and management practices, so be sure to ask about them during initial discussions with the landlord. This is a key consideration for anyone on a budget to rent in Hungary, as these costs can significantly affect your monthly expenses.

real estate market, Budapest — Source: depositphotos.com

Address registration

After moving into your apartment in Hungary, it’s important to register your address with local authorities to obtain an address card (lakcímkártya). This registration is essential for various administrative needs, such as opening a bank account or accessing health insurance, and it establishes your legal residence in Hungary.

Language assistance

If you’re not fluent in Hungarian, having a bilingual contact to assist with rental agreements and paperwork can be invaluable. You might consider hiring a local real estate agent or legal advisor who can help with translations and clarify contract terms. Language support is particularly helpful for expats renting in Hungary, as it ensures a clear understanding of all obligations.

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Featured image: depositphotos.com

October 31, 2024

Major shift in Budapest: District council approves ban on short-term rentals, package for affordable housing adopted

The local council of Budapest’s District VI, in the city centre, voted on a short-term rental ban from 1 January 2026 at a meeting on Thursday.

In a statement, the local council said residents’ “peace at home” had trumped the decline in budget revenue the ban would entail.

In a referendum in September, around 54pc of the residents of the district voted for the homestay ban. The 20.5pc participation rate was “well over” that for similar votes, such as the 9pc rate for a city-wide survey of residents, the local council noted.

Economy minister discusses affordable housing measures with industry insiders

National Economy Minister Márton Nagy has met with representatives of the biggest property companies in the country and of the construction industry association EVOSZ to discuss government measures to ensure affordable housing, his ministry said on Thursday.

The sides weighed potential state programmes that could pump HUF 20bn-30bn into the local property market to support the development of affordable housing, rental properties and student dormitories, the ministry said.

Nagy said the government would consider a role for state-backed capital funds in supporting the endeavour to ensure affordable housing.

The matter of lowering the VAT rate on home rentals from 27pc to 5pc was also raised.

Nagy said the government was counting on industry players’ active participation in the construction of new homes and rental properties as well as the expansion of dormitory stock. He noted that ten of the 21 measures in the government’s recently unveiled New Economic Policy Action Plan aimed to ensure affordable housing.

Consultations on affordable housing will continue on a regular basis.

Budapest assembly adopts package to ensure affordable housing

The municipal assembly of Budapest adopted a package of proposals aimed at securing government assistance to the city’s housing programmes and to promote optimum use of the existing housing stock and other properties, late on Wednesday.

In his introduction to the package, Mayor Gergely Karácsony said the housing crisis in Budapest called for the initiatives of the city and its districts, targeted use of European Union funding, and a more active role by the central government.

Under the adopted package, the government is requested to publish without delay tenders for municipal housing programmes to be financed from EU structural funds.

The body has authorised the mayor to propose that the government should provide capital funding to municipalities as well as subsidised loans to increase the municipal rental stock. The package also aims to obtain funds from central coffers or EU funding to top up municipal subsidies for energy-saving home renovations.

The assembly expressed its approval of the government’s position that the practice of using flats in Budapest for tourism should be restricted, but suggested that the government’s two-year moratorium should be further shortened “to a legal minimum”.

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Featured image: depositphotos.com

October 31, 2024

Addressing Budapest’s housing crisis: Proposal to restrict home purchases by non-EU nationals

Budapest’s leaders are taking bold steps to tackle the housing crisis, proposing a two-year ban on property purchases by non-EEA nationals and pushing for tax reforms to boost long-term rentals.

Addressing the housing crisis in Budapest

Világgazdaság reports that Budapest’s municipal leadership is set to propose a new housing policy aimed at addressing the housing crisis, with a vote expected next Wednesday. Ambrus Kiss, Director General of the Mayor’s Office, outlined key points of the plan during a background meeting. While the capital’s leadership supports the government’s efforts to tackle the housing crisis, they argue that the current measures are insufficient and require additional action. Gergely Karácsony, the city’s mayor, is presenting a ten-point programme seeking government support, which includes the regulation of short-term rentals like Airbnb.

real estate Hungary Budapest — Photo: Daily News Hungary ©

Supporting the rental market

The city is pushing for the government to expedite the implementation of these regulations and introduce tax reforms aimed at encouraging long-term housing. Proposed changes include increasing the tax burden on short-term rentals while reducing taxes for long-term rentals. Specifically, they suggest halving the tourism tax for rentals of more than one year and exempting income tax for housing rented out for more than three years. These measures are designed to motivate homeowners to place their properties on the rental market and alleviate the housing crisis.

Will non-EU nationals be banned from buying a house in Budapest?

Ambrus Kiss has proposed a significant measure to alleviate Budapest’s housing crisis, suggesting a two-year moratorium on property purchases by non-EEA nationals in the capital. This restriction would primarily affect buyers from outside the European Economic Area, including Chinese, Russian, and Arab nationals. The aim is to curb the trend of foreign investors purchasing apartments as assets, which often remain vacant, exacerbating the housing shortage. Kiss emphasised that similar regulations exist in other countries and are not considered discriminatory, highlighting the need to prioritise homes for residents over investments.

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

Further initiatives

Additionally, the city is urging the government to remove the requirement for parking spaces in new housing developments, arguing that this regulation hinders the adaptive reuse of buildings. This change would enable greater flexibility in repurposing spaces such as former schools into residential units, potentially increasing the housing supply and addressing the ongoing housing crisis in Budapest.

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October 25, 2024

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

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.

real estate property in budapest rental market home prices — The Liberty Bridge, the Fővám Square and the Kálvin Square in Budapest. Photo: FB/ZoltanGaborPhotography

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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Here is when the new Hungarian Golden Visa scheme starts: will Hungarian and Chinese businessmen supervise it?
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Featured image: depositphotos.com

October 8, 2024

Orbán cabinet would build new dormitories, boost economy, review rental and Airbnb regulations in Hungary

Orbán cabinet would build new dormitories, review rental and Airbnb regulations in Hungary

Hungary wants to stay out of the “cold trade war” declared by Brussels and Western Europe and adopt a policy of economic neutrality, Gergely Gulyás, the head of the Prime Minister’s Office, said at a press briefing during a cabinet meeting in the renewed Tisza Castle in Geszt, in the southeast of the country, on Thursday. The government also talked about how to boost the economy and the need of new regulations concerning the rental and short-rental, Airbnb markets.

Gulyás said that such a trade war presented “extraordinary risk” to Hungary’s export-driven economy, cutting off the country from markets and investment opportunities. He added that a policy of economic neutrality would help achieve the government’s GDP growth target of 3pc-6pc.

If that level of growth can be achieved, wages will rise, budget revenue will climb and the success of the government’s economic policy will be validated, he said.

Gergely Gulyás in the Tisza Castle in Geszt briefing press after the government meeting finished. Photo: MTI

Stimulating economic growth top priority

He said the cabinet meeting had assessed and weighed the outlooks for the Hungarian and the European economies over the past three days. He added that the fundamental changes to the global economy brought on by the pandemic and the impact of the war in Ukraine required new responses and a new economic policy.

He noted earlier announced government decisions to introduce a credit scheme for young blue-collar workers and a capital programme for SMEs, as well as doubling the tax preference for families with children by January 1, 2026. He said the government would also make a priority of affordable housing, wage increases based on economic growth, and advances for SMEs. Related measures will be drafted in detail by the end of October and submitted to lawmakers with the 2025 budget bill early in November, he added.

Orbán cabinet wants to ease housing problems with regulating Airbnb?

He pointed to programmes supporting dormitories and housing for young people and acknowledged the higher rate of home ownership in Hungary in comparison with Western Europe. He said the appreciation in home values in recent years had resulted in a housing challenge, especially for young people. He added that the economy ministry had been tasked with reviewing international practices regarding rental regulations, including those for Airbnb-type short-term rentals.

He said the government would make accelerating home construction and ensuring affordable housing a “priority task” over the next two years.

He said the government wanted employers and unions to reach a multi-year agreement on minimum wage rises that would feed through to the average wage.

Gulyás said the economy minister also had a mandate to draft measures on further incentives for improving the position of SMEs in the coming 2-3 weeks.

Fielding questions, Gulyás said a HUF 500bn increase in the deficit target was “technical”, noting that the 4.5pc target relative to GDP was unchanged and “achievable”.

He said the forint’s recent weakening was mainly due to external political and economic factors, such as the situation in the Middle East. The government has no concrete exchange rate target, rather the goal is to avoid volatility, he added.

Significant minimum wage increase will come

Asked to comment on National Economy Minister Márton Nagy’s projection that the minimum wage would reach EUR 1,000/month by the start of 2028, Gulyás said it was “completely realistic”.

He said a number of proposals had come before the government on regulating short-term rentals, but a decision on the matter hadn’t been taken yet. The issue requires careful consideration as it involves complex legal problems, he added.

Gulyás said the state’s acquisition of a controlling stake in regional railway company GYSEV was of “great significance” and the company could serve as a paradigm for levels of service in public transport.

10pc minimum wage rise would be ‘manageable’ for construction industry, trade union says

A 10pc minimum wage rise for 2025 would be “manageable” for construction industry companies, the National Federation of Hungarian Building Contractors (ÉVOSZ) said on Thursday. Talks between employers, unions and the government on next year’s minimum wage increase are ongoing. ÉVOSZ said that an annual 10-11pc minimum wage increase in 2026-2027 could only be implemented parallel with a number of economic development measures, more favourable lending conditions and an improvement in industrial efficiency.

ÉVOSZ noted that wages in the construction sector had risen 17.5pc, on average, in 2023 and were set to climb by 12pc in 2024. It added that wages in the sector were still just 80pc of the national average for the business sector. ÉVOSZ said order stock was under 80pc of last year’s levels at around 90pc of businesses, adding that redundancies couldn’t be excluded given the circumstances. It also pointed to the impact of exchange rates on the sector.

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October 3, 2024

How would an Airbnb ban affect Budapest’s rental market?

Budapest’s rental market could undergo significant changes if Terézváros votes to ban short-term rentals such as Airbnb. An analysis by ingatlan.com suggests that such a ban might increase the supply of housing and lower prices in the district, where rates are currently higher than the city average.

Will Airbnb be banned in Budapest?

We have previously reported HERE that tourism experts are discussing potential changes to Airbnb regulations in Hungary, which could affect up to 16,000 properties in Budapest and 35,000 across the country, bringing significant changes to Budapest’s rental market. The proposed regulations might restrict Airbnb operations to 150-180 days per year, similar to policies already in place in other European countries. In Budapest’s Terézváros district, residents will vote in September 2024 on a potential ban on Airbnb—a decision that could have a serious impact on local accommodation providers.

These providers have launched the “Let Terézváros Live!” campaign, arguing that such a ban would damage tourism and lead to long-term problems, pointing out that international examples show no clear link between the presence of Airbnbs and rising rental prices. They warn that restricting private accommodations could drive tourists away from Budapest if suitable alternatives are not available.

Budapest’s rental market could face serious changes

As Telex writes, Budapest’s rental market and property sales could face significant changes if the Terézváros referendum results in a ban on Airbnb, according to an analysis by ingatlan.com. Such a ban could increase housing supply, potentially driving down property prices and rental costs in the medium term.

However, according to the opponents of the Airbnb ban, this assumption is not borne out by the examples of global cities, as nowhere has housing or apartments become cheaper, writes Helló Magyar.

Currently, properties in Terézváros are more expensive than the city average, partly due to the influence of Airbnb. The district’s average price per square metre is HUF 1.26 million (EUR 3,204), compared to the Budapest average of HUF 1.03 million (EUR 2,619). Meanwhile, rental prices in the district stand at HUF 275,000 (EUR 699), which is 10% higher than the city’s average of HUF 250,000 (EUR 636).

According to the latest census, 32% of properties in Budapest’s 6th district, Terézváros, are unoccupied, with around 2,700 used as short-term rentals such as Airbnb. This has contributed to higher rent and property prices in the area. If even half of these short-term rentals were converted to the long-term rental market, the supply in Terézváros would double, potentially lowering local rental prices in the short term. László Balogh of ingatlan.com suggests that if an Airbnb ban is implemented, property values in the district may stagnate, causing a ripple effect that could slow price increases across Budapest’s rental market and even affect other cities.

apartment to rent in budapest — Photo: Flatco

When will Airbnb’s fate be decided?

On 2 September, a referendum began in Terézváros, allowing residents to vote on whether to ban short-term rentals, such as Airbnbs, in the district. Locals have two weeks to cast their votes, either online or in person. Terézváros Mayor Tamás Soproni has emphasised the significance of this vote, stating that, unlike previous consultations, the outcome will be decisive, with the majority decision of residents being implemented. This decision could also determine the future direction of Budapest’s rental market.

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Featured image: depositphotos.com

September 9, 2024

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

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

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

Tourists vs cities: Next clash in Budapest – mayor, government-close tourism board against Airbnb

Surprising tourist opinions about Hungary, Budapest and the Orbán cabinet safety

We reported earlier that a Budapest downtown district plans to ban Airbnb with the help of a plebiscite. The mayor of Terézváros said he would vote for the ban, and Válasz Online wrote that the government-close Tourism Advisory Board would also like to introduce ‘deadly’ restrictions in the sector. Will the locals save Airbnb in Terézváros?

Budapest is not affected by overtourism

Terézváros is one of Budapest’s jewels. The downtown district connects Heroes’ Square with the Nyugati (Western) railway station, but its population dropped significantly in the last few decades. Tamás Soproni, the newly-elected mayor of the district, said they lost more than 10 thousand people in the previous 20 years.

Válasz Online published a report about the story of short-term rentals, highlighting that ‘Airbnb‘ became popular after the number of travellers skyrocketed due to the revolution in air travel and the appearance of low-cost airlines. The result was ‘overtourism’ in some European countries and cities like Spain’s Barcelona or Italy’s Venice. Budapest is not among the places affected by overtourism. Based on McKinsey (2023), the number of guest nights/citizens was 8.4 in Budapest (Paris: 21.8, Vienna: 9.8, Prague: 13.2, Venice: 46.0), while the number of foreign guests/citizens stood at 1.9 in 2023 (The Economist). The latter number was 5.9 in Barcelona, 6.3 in Milan and 2.3 in London.

Hungary tourism — Fisherman’s Bastion. Photo: despositphotos.com

Tourists in Budapest love Airbnb

However, there is a list which Budapest tops. In the Hungarian capital, the number of guest nights in hotels and motels was 8.2 million, while in Airbnb rentals, it was 5.9 million. Only Lisbon preceded Budapest’s 40% in that regard.

Budapest has been struggling with a housing crisis for a while. Thus, some politicians chose Airbnb as the scapegoat. Mayor Soproni bravely wants to claim the position of the “battering ram” in that regard and admits their voting may result in a total Airbnb ban in Budapest’s downtown districts. He added the local government had HUF 700 million (EUR 1.78 million) from the business, but they must consider the “greater good”.

Budapest district mayor tells further details about banning Airbnb from September (Copy) — Mayor Tamás Soproni, the “battering ram” of Airbnb ban. Photo: FB/Soproni

Terézváros is one of the most expensive districts of Budapest in terms of rental prices, with an average of HUF 294k (EUR 750) per month. László Balogh claims that COVID proved that if short-term rental apartments returned to the Budapest housing market, prices would decrease by 30%.

Would rental prices not decrease after a ban?

Balázs Schumicky, an advocate of the Airbnb community, short-rent apartments would never appear on the Hungarian market, only on the expat market, because owners spent a lot of money to create high-quality Airbnb homes for tourists.

Airbnb Budapest — Will high-quality Airbnb rentals not appear on the Hungarian rental market? Source: depositphotos.com

However, Airbnb owners seem to have weak chances at the Terézváros plebiscite. The leftist Momentum mayor said he would vote for the ban while the government-close Tourism Advisory Board would also support the restriction of the Airbnb market. For example, they wanted to introduce a 180-day limit, which might kill the entire sector. Válasz Online suggests the reason is that government-close business owners bought a large part of the Budapest hotel sector, and they do not want competitors. Mayor Soproni said he did not know any government-close hotel owners, and that he is only concerned for the locals of Terézváros.

The information booklet of the local government concerning the Airbnb issue was distributed to all locals. There will be a conference in the matter on 3 September:

Communist measure

Mr Schumicky said the ban would take the business of many Airbnb owners. He added that 71% of the market is in the “hands” of small players renting only one apartment. He compared it to the Communist era when the state took away people’s property.

Soproni said the local government did not have other options but to ban Airbnb or allow it to continue operating like before. In the 2019-2024 cycle, they introduced a differentiated restriction, but the government office abolished it.

Márton Nagy, Hungary’s national economy minister, said in an interview that the Airbnb issue was a matter concerning housing. He added the number of short-term rental apartments in Budapest was 26,000, reducing supply and making renting accommodation harder.

Read also:

Budapest district mayor shares further details about possible Airbnb ban from September – read more HERE
Airbnb prices began to decrease in Budapest

Featured image: depositphotos.com

August 21, 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