rent

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

budapest property real estate housing residential area university apartment hotel inflation

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

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

University towns: Rental market in Szeged

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

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

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

Rents in Kaposvár and Szombathely

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

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

Real estate market in Debrecen

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

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

The Miskolc market

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

The situation in Pécs

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

Rental prices in Budapest

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

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

Read also:

Featured image: depositphotos.com

Renting an apartment in Budapest is almost a luxury: prices approach those in Madrid

Budapest property market

In 2023, rents for centrally-located, newly built or recently renovated apartments in Budapest rose by 17% compared to the previous year, marking the third-highest increase in the entire European Union. The Hungarian capital now ranks mid-range in Europe in terms of prices, with renting an apartment in Budapest almost as expensive as in Madrid and Zagreb.

Eurostat conducted a study comparing the relative cost of living in EU capitals, with the data for Hungary provided by the expert team at Duna House. The findings were presented on Monday by Károly Benedikt, Duna House’s head of public relations and analysis, ATV reports.

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

Renting an apartment in Budapest costs an arm and a leg

.Eurostat surveyed the prices of rental apartments used by international officials. Therefore, the prices do not represent the average rental market but instead show the monthly tariffs of apartments in good or excellent condition, in well-equipped city centre locations, built or significantly modernised in the last 10 years at the latest.

For Budapest, the survey included sublets of 1-3 rooms, ranging between sizes 110-130m², 60-80m², and 40-60m², located in central districts (districts I, II, III, XI and XII in Buda and V, VI, VII, VIII, IX, XIII in Pest).

Renting an apartment in Budapest
Budapest inner city. Photo: Pixabay

According to the data from Duna House, the average rents in2023 for apartments in Budapest were as follows:

  • One-bedroom apartments: EUR 890 per month
  • Two-bedroom apartments: EUR 1,300 per month
  • Three-bedroom apartments: EUR 1,700 per month

The EU-wide survey found that between 2022 and 2023, rents in Zagreb and Sofia increased the most, by 20% in both cases. The Hungarian capital saw the third-highest increase, with rents for central, well-maintained apartments rising by 17% last year compared to 2022.

Overall, Dublin is the most expensive capital city in the European Union in terms of rent, with tenants also paying high prices in Luxembourg and Paris. Stockholm and Copenhagen are the fourth and fifth most expensive cities for average monthly rent.

.In two cases, Eurostat researchers found a decrease in rents in 2023: a slight 1% drop in Helsinki and a more significant 13% downturn in Vilnius.

Budapest ranks midfield in the Central European region

Among the capitals of neighbouring countries, the cost of renting a property increased by 13% last year in Ljubljana, 11% in Vienna, 10% in Bucharest, and 7% in Bratislava compared to 2022, while rents in other cities increased by between 2% and 15%.

Vienna Austria city
Vienna at night. Photo: Pixabay

Overall, modern rentals in the city centres of Berlin, Prague, Vienna and Ljubljana are the most expensive, with prices as follows:

  • One-bedroom apartments: EUR 1,150-1,250 per month
  • Two-bedroom apartments: EUR 1,550-1,600 per month
  • Three-bedroom apartments: EUR 2,050-2,150 per month

The cost of renting an apartment in Budapest follows directly after, in fourth place, with the aforementioned monthly prices. By comparison, it is cheaper to rent an apartment in cities such as Bratislava, Warsaw, and Bucharest, where average monthly rents are:

  • One-bedroom flats: EUR 580
  • Two-bedroom flats: EUR 900
  • Three-bedroom flats: EUR 1,200

Read also:

  • The biggest increase in real estate prices happened in these Hungarian towns – HERE
  • Real estate market: Average price of newly built apartments in Budapest shockingly high – Read HERE

Housing market: Foreigners buy up the countryside, rents in Budapest cheapen

lake balaton property real estate places to live

In the fourth quarter of 2023, Zala County in Hungary had a substantial share of foreigners flock to its housing market. The county is not in a unique position: in three regions of the country, the proportion of non-Hungarians in the housing market has reached around 20 percent.

Foreigners are prominent in the housing market of these regions

The share of foreigners in the housing market in Zala County hit a record high in the fourth quarter of 2023, Telex.hu reports the analysis from the Hungarian National Bank (MNB). The latest data shows that 21.1 percent of home buyers in the county were foreigners at the end of last year.

Somogy County and the inner districts of Pest are also popular among foreigners. Still, interestingly, the share of foreign buyers in the housing market has declined somewhat in these two regions. Even so, almost 1 in every 5 buyers were non-locals in the case of both: 17.8 percent in the inner districts of Pest and 19.4 percent in Somogy County.

By comparison, Budapest’s proportion of foreign buyers was 7.6 percent, while in Hungary’s national housing market, it was only roughly 6 percent.

According to the Hungarian National Bank’s figures, housing prices in virtually all types of settlements saw a moderate increase at the beginning of 2024. However, the bank highlights that while foreign buyers are contributing to the rise in prices in the housing market of Hungary, they are still not the main culprit behind the hikes. Instead, speculative housing purchases are the ones that most affect prices.

Rent price increases slowed in Budapest but shot up in other cities

Rent prices have continued to rise at a higher pace than house prices, the MNB analysis highlights, but have slowed down compared to 2022.

In Budapest, for example, in the fourth quarter of 2022, the growth rate of rents was at 22.8 percent. In Q4 of 2023, on the other hand, the rate has gone down to 12.2 percent. Similarly, the national average growth in prices slowed from 21.4 percent to 12.6 percent in a year.

As for 2024, Index.hu looked at the real estate market in districts XIV and XVI of Budapest, illustrating the changes in the capital’s rental market at the beginning of the year through these two examples. It found that the hike in rental prices, which had been going on for several months, had come to a halt in the spring of 2024.

However, in terms of payments in April, the country and the capital followed different trends. While rents rose by an average of 0.8 percent nationwide compared to March, they fell by 0.5 percent in Budapest, according to the KSH and ingatlan.com rent index.

Moreover, there are also differences when it comes to Budapest: the inner districts of Pest saw a 1.8 percent monthly decrease, while rents of properties on the hills of Buda rose by 1.4 percent. The mean monthly rent in the capital was HUF 270,000 (EUR 695) in May. In the most expensive districts (II and V), the average monthly rent was HUF 380-400 thousand (EUR 979-1030). Within the capital, only in the XV, XX, and XXI districts did the average monthly rent remain under HUF 200 thousand (EUR 515).

“This year’s double-digit rise in earnings and incomes has now been priced into the market, but tenants are finding it difficult to afford significantly higher rents. This has led to a significant slowdown in rental growth nationally and a turnaround in rents in Budapest, where rents have been falling every month. Overall, April saw a correction of the brisk price increases seen in the first months of the year,” László Balogh, Chief Economist at ingatlan.com, commented on the April data.

“One reason why rents react so quickly to changes in market demand is that landlords can lose hundreds of thousands of euros if their rental property sits empty for weeks. This is now putting tenants at a disadvantage,” he added.

Debrecen took the title of the most expensive big city in the countryside, with average rents of HUF 240,000 (EUR 618) a month. Here, prices have risen by an average of HUF 20,000 (EUR 50) per month, so much so that the mean rent in Debrecen is higher than in nine districts of Budapest. The combined average rent in the county seats was HUF 150,000 (EUR 386) , illustrating how high averages in the city are.

Debrecen is followed by Székesfehérvár, Győr, and Veszprém, which have average monthly rents of HUF 180-190 thousand (EUR 464-490).

Read also:

Shocking Trends: Cost of rent in Budapest and nationwide goes through the roof

apartment to rent in Budapest madarász38_lakopark

Rent in Budapest saw a 1.8% increase in March, as per the KSH-ingatlan.com rent index, with a nationwide uptick of 0.8%, based on the KSH-ingatlan.com rent index. Year-on-year comparisons reveal a staggering 11.7% surge in national rent prices and a 12.4% spike in the capital.

By mid-April, average monthly apartment rent in Budapest hovered around 270,000 HUF (EUR 684), fluctuating across districts from lows of approximately 180,000 HUF (EUR 456) to highs nearing or exceeding 380,000 HUF (EUR 963).

According to 444.hu, rents in county towns ranged from HUF 90,000 (EUR 228) to 220,000 (EUR 558). Recent data suggests a challenging rental market, with national monthly price increases slowing to 0.8% from February’s 1%, while the cost of rent in Budapest witnessed an acceleration from 1.1% to 1.8%, as noted by László Balogh, chief economist at ingatlan.com.

The economist also stated that the national monthly rent growth is primarily driven by constraints on purchasing power rather than inflation, attributing the rise in rents to wage increases.

Cost of rent in Budapest and nationwide

This trend may explain why the average cost of rent in both Budapest and Debrecen has crossed psychological barriers. The average rent for available apartments in Budapest stands at 270,000 HUF (EUR 684), with smaller flats under 40 square metres averaging 185,000 HUF (EUR 469).

Balogh observed that if wage growth continues at a similar pace, Budapest could expect an average rent of around 300,000 HUF (EUR 760) next year. He also mentioned recent government initiatives such as Youth Guarantee Plus and Housing Allowance 2024, introduced this spring, which may alleviate some pressure from the escalating cost of rent in Budapest and nationwide.

These plans offer social rent subsidies aimed at helping young people and job seekers in finding housing and employment opportunities.

Supply data for April reveals notable discrepancies across districts. Notably, District V emerges as the most expensive, with rents reaching up to HUF 380,000 (EUR 963). Among districts with high availability, Districts XI and XIII closely align with the capital’s average rent, settling around 270,000 HUF (EUR 684). On the contrary, Districts XVIII and XXI offer more affordable options, with rents below the HUF 200,000 (EUR 507) mark.

Shifting the focus to the county market, Debrecen emerges with the highest average rent, surpassing the 200,000 HUF (EUR 507) threshold by mid-April, clocking in at an average of 220,000 HUF (EUR 558).

Following closely behind are Győr, Székesfehérvár and Veszprém, where rents range between HUF 176,000 (EUR 446) and 180,000 (EUR 456). Conversely, cities like Miskolc, Salgótarján and Békéscsaba offer more budget-friendly options with rents falling between HUF 90,000 (EUR 228) and HUF 100,000(EUR 253).

In the evolving rental market landscape, new data reveals interesting changes and challenges regarding the cost of rent in Budapest and nationwide. The significant rise in average rents in March, particularly pronounced in the capital, raises concerns about housing affordability and availability. Balogh’s insights underscore a complex interplay between rising rent prices, purchasing power and wage dynamics, suggesting a need for a nuanced approach to address these issues effectively.

Read also:

  • Tourism in Hungary at huge risk: proposed changes threaten Danube’s future – HERE
  • Constructive – Is Budapest party district set to undergo robust changes? – HERE

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.

Read also:

Rent prices in Budapest and in the countryside increased by this much

Property and rental prices will boom in this Hungarian city due to Chinese investment (Copy)

In Budapest, housing rents in Hungary surged by 14.1 per cent in 2023, while in rural areas, they soared by 30 per cent over the past year.

Budapest

The average monthly rent for brick apartments in Budapest stood at HUF 235,000 (EUR 608) last year, whereas in rural towns with populations exceeding 100,000, it amounted to HUF 168,000 (EUR 435). This represented a 14.1 percent increase in the former and a staggering 30 percent surge in the latter, as per the annual report by Otthon Centrum (OC).

District V emerged as the priciest locale in the capital, commanding an average rental rate of HUF 321,000 (EUR 830). Following closely behind were District VI (HUF 298,000, EUR 771) and District II (HUF 294,000, EUR 761), with District I trailing not far behind the top trio (HUF 284,000, EUR 734).

Rent averages largely fell within the range of HUF 200 to 250 thousand (EUR 517 and 647), although the number of rooms in the rented property significantly influenced pricing. The average monthly rent for a one-room apartment in the capital was HUF 151,000 (EUR 391), rising to HUF 218,000 (EUR 564) for a two-room apartment, and reaching HUF 308,000 (EUR 796) for a three-room apartment.

Notably, smaller one and two-bedroom apartments experienced more pronounced increases, rising by approximately 14.5 percent, while three-bedroom apartments saw a more modest uptick of 3.8 percent over the past year.

Rural market

In 2023, the average monthly rent for rural apartments stood at HUF 168,000 (EUR 435), as reported by rtl.hu.

Székesfehérvár led the pack as the most expensive rural rental destination last year, boasting an average monthly rate of HUF 210,000 (EUR 543), closely followed by Győr at HUF 190,000 (EUR 492). Meanwhile, in Szeged, Miskolc, and Debrecen, the average monthly rents ranged between HUF 145,000 and 160,000 (EUR 393), marking an annual increase of less than 10 percent.

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.

Unbelievable: rental prices sky-high in Budapest, here is why

budapest city castle hungary traffic restrictions

Since many rental contracts include price increases at the beginning of the year, rents started to rise again. As inflation slows, landlords may feel they can raise rents more. This brings us to sky-high rental prices in Budapest, the Hungarian capital.

According to KSH-ingatlan.com’s rent index, the average rent prices in Hungary and Budapest decreased month-on-month in the last month of 2023. However, in the first two weeks of January, Budapest saw an increase in the supply market, ingatlan.com writes in a statement.

“In December last year, the year-on-year increase was 13% nationally and 12% in Budapest. Compared to average levels in 2015, there was a rise of 95 and 85%, respectively. At the same time, real rents, or inflation-adjusted rents, are still below the peak levels seen in January 2020,” said László Balogh, chief economist at ingatlan.com.

In the first three weeks of 2024, however, there was a shift in the rental market, and not just in prices. Renters can now choose from more than 14,000 ads nationwide, up 15 percent from a year ago. In Budapest, more than 1,000 apartments have been added to the supply, but rents have risen at the same time.

Read also:

Average monthly rents in the capital have risen to HUF 250,000 (EUR 650) from HUF 240,000 (EUR 623) in previous months.

“This is partly due to the fact that real wages have been on the rise, and further increases can be expected this year. And landlords are extremely sensitive to tenants’ ability to pay,” Mr Balogh said.

“Although the majority of rental contracts have an anniversary in the summer before the September academic year, a significant number have rent increases in January and in many cases linked to inflation. This could also pull up prices in the capital. However, most tenants cannot afford an increase equivalent to last year’s inflation of 17.6 percent, so a significant number of landlords will be happy with a smaller increase,” he added.

Record rental and real estate prices in Hungary in 2023

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

Although the rental and real estate prices have been stagnating in the final months of 2023 in Hungary, it has been a hell of a year for tenants and prospective homebuyers. Rental costs jumped by 12% this year, but the real estate prices have also reached staggering levels. Here are the most extreme examples.

Skyrocketing rent prices

Forbes reported that the average rent in Budapest was HUF 240,000 (EUR 623), while in bigger Hungarian towns it ranged between HUF 80,000 (EUR 208) and HUF 200,000 (EUR 519). Towards the end of the year, the prices were stagnating. In November, the rent went up by 0.2% on average in the country and by 0.1% in the capital. However, on a year-on-year basis, the surge was about 12%. According to experts, the price increase is mainly due to rising incomes. Inflation has only a minor impact on the market on its own.

Rent in Hungary

As of December, the average rent in Budapest remains at HUF 240,000 (EUR 623). Data also reveals that the majority of rentals are concentrated in the 11th and 13th Districts of the city. The 1st district emerges as the most expensive, averaging HUF 300,000 (EUR 780), while the 23rd district retains its status as the most economical, with an average rent of HUF 180,000 (EUR 468). Győr is the priciest town for rent among county seats, averaging HUF 200,000 (EUR 519), followed by Debrecen at HUF 188,000 (EUR 488) and Székesfehérvár at HUF 178,000 (EUR 463). The most budget-friendly county seat is Salgótarján, where an apartment rents for an average of HUF 80,000 (EUR 208).

Pricing extremes

Some remarkably affordable rooms were available for rent in Kecskemét, Debrecen and Szeged, with monthly fees ranging from HUF 25,000 (EUR 65) to HUF 30,000 (EUR 78). Want to hear something even more shocking? In the village of Jobbágyi, Nógrád County, a 38-square-metre home could be rented for HUF 50,000 (EUR 130) per month. In Budapest, the least expensive flatlet, located in the 20th district, was advertised at just HUF 60,000 (EUR 156) per month. On the opposite end of the spectrum is a 140-square-metre home on the Buda side, a two-storey penthouse with its own sauna and garages, commanding a monthly cost of HUF 1.72 million (EUR 4,470). In rural areas, the most expensive residence was a family house in Balatonfűzfő, costing HUF 950,000 (EUR 2,469) per month.

Real estate landscape in Hungary

As Portfolio writes, demand surged across almost all locations towards the year-end, with the Buda side experiencing a whopping 50% increase in home sales compared to Q3. Statistics have also revealed that people preferred apartments with 2 or 3 bedrooms over flatlets. Districts vary significantly in the price of new homes sold, influenced not only by the price per square metre and average size but also by the volume of sales. For instance, in the 2nd district, where only 6 homes were sold in Q3, the average real estate price was HUF 364 million (EUR 946,385). Nevertheless, the capital’s average price stood at HUF 90 million (EUR 233,937). The most popular districts in Q3 were the 13th and 11th districts.

 Read also:

Lots of foreigners buy property in Hungary: these are the most popular places

Experts: twist expected on the Hungarian property market in 2024

Shocking price gap between most and least expensive streets in Hungary

Recent data has revealed a significant price gap in the square-metre prices of houses in Hungary. Ingatlan.com compiled a ranking based on statistics from the Hungarian Central Statistical Office and sales from the previous year. Here are the most and least expensive areas in Budapest and Hungary.

Last year’s ranking in Budapest

24.hu reported that residential properties were selling for an average of nearly HUF 2.5 million (EUR 6,525) per square metre in the most expensive street. It comes as no surprise that this street, Költő Street, was located in the capital. The first and second runners-up were also located in Budapest, Vécsey Street (District V.) and Orom Street (District I.). There, the price per square metre was HUF 2.3 million (EUR 6,000) and HUF 2.2 million (EUR 5,740), respectively. On the opposite end of the spectrum was the infamous Hős Street (District VIII.), the cheapest in the capital last year, with HUF 223,000 (EUR 580) per square metre. Rákóczi Road (District XVI.) secured second place with HUF 298,000 (EUR 778), and Gitár Street came in third with HUF 313,000 (EUR 817).

Last year’s ranking in the countryside

In addition to Budapest, settlements along the shores of Lake Balaton exhibited a shockingly expensive real estate market. Settlements near Lake Balaton were the only ones outside Budapest to feature in the list of the top 10 most expensive streets in Hungary. In 2022, the most expensive street was situated in Balatonfüred. The average square metre price in Honvéd Street was HUF 2.34 million (EUR 6,110). The other two streets in the top three were located in Siófok, with the average price in Deák Ferenc Promenade at HUF 1.73 million (EUR 4,520) and in Vitorlás Street at HUF 1.62 million (EUR 4,230). The least expensive houses outside Budapest were found in Mezőhegyes, with an average price per square metre as low as HUF 21,000 (EUR 55).

This year’s rankings

As anticipated, the most expensive area in 2023 remains in Budapest. Széchenyi Quay (District V.) takes the first place on the list with a price per square metre of almost HUF 3.5 million (EUR 9,135). Second place goes to Szántód’s villa row, where the average price was HUF 3.2 million (EUR 8,350). The second runner-up this year is Sirály Street in Balatonfűzfő, with an average price per square metre of HUF 3.1 million (EUR 8,090). Much like last year, the most expensive streets are either in Budapest or near Lake Balaton. The least expensive street this year is Táncsics Mihály Street in Nágocs (Somogy County), where residential properties are surprisingly being offered for just HUF 5,000 (EUR 13) per square metre. In conclusion, the most expensive houses cost 700 times more than the least expensive ones. However, as reported HERE, a brutal price fall is expected in the Hungarian property market. Additionally, an unexpected turn in Hungary’s rental price market is also happening.

How do Budapest rental prices fare compared to other European cities’?

budapest real estate

Statista has released a new report based on HousingAnywhere’s rental price data. This new report reveals that the average rent price has surged by 43% since last year. More importantly, it reports that the average Budapest rental price is 1,100 EUR, roughly 430,000 HUF. We researched the most recent data to verify its accuracy and compared rental prices to those of other European cities.

As Telex report, according to the latest KSH reports from July, the average rent price in Budapest and Hungary overall has risen by 1.9% compared to June. It has increased by 14% in Budapest and 13% in Hungary overall since July 2022. The average rent is HUF 230,000 (EUR 591.84), with the II. and V. districts having the highest prices at HUF 350,000 (EUR 900.62) and the XXIII. district the lowest at HUF 150,000 (EUR 385.98).

This data suggests that Statista‘s report, which has gained popularity on social media with over 7,000 likes by 6 October 2023, is somewhat misleading because HousingAnywhere‘s data pool only includes about 125 rental properties in Budapest, targeting mobile, upper-class consumers aged 18-35, including some digital nomads who do not rely on Hungarian wages and are typically paid in euros.

Read more: Brutal price fall expected on Hungarian property market in next 2-3 years

According to Statista’s most recent 2022 Q3 report on European rental prices, Budapest is becoming more comparable to other European cities. The average rent in Turin is EUR 970, slightly higher than the average rent in Budapest’s most expensive districts, but almost 50% higher than the city’s overall average rent and nearly three times as high as the average rent in the cheapest district.

Although Turin has a per-capita GDP of only EUR 33,000, which is just 10% higher than Budapest’s, it commands significantly higher rent prices. Other European cities like Brussels and Berlin have much higher rent rates, averaging 1,100 and 1,695 euros, respectively, while even Ljubljana boasts a higher average rent of 700 EUR. Conversely, Warsaw has an average monthly rent of EUR 610, which is approximately EUR 50 lower than the price of a one-bedroom apartment in Budapest, Eurostat reveals.

These statistics alone do not paint the whole picture. As we mentioned earlier, the average rent price has risen by 14% in Budapest since last year. However, according to KHS’s report, the average net salary has only crept up to HUF 377,600 (EUR 971.64), a 17.9% increase. Real salary prices have actually dropped by 3% due to a 21.5% increase in average consumer prices. This has made it more challenging for people living on average Hungarian wages to afford rent in Budapest. In contrast, it has not significantly affected digital nomads, as most of them receive their salaries in euros.

Read more: No end in sight: horror of the Hungarian rental market continues

Author: Máté Kollár

Tightening rules for Airbnb rents in Hungary?

airbnb, tourism, travel

The opposition Jobbik-Conservatives want rules for Airbnb-type short-term lets of apartments bought by foreign investors tightened, the party’s deputy leader said on Tuesday.

Properties let out to tourists in Budapest and big cities distort the rental housing market, Dániel Z Kárpát told a press conference, proposing a 90 day annual limit for such lets and owners paying 27 percent VAT instead of the current 5.

Owners could then rent out apartments to university students, say, in the remaining nine months, he said, adding that Jobbik will soon submit a related bill to parliament.

Read also:

Turn in the real estate market: Rise in rent prices in Budapest stopped?

“Compared to July last year, Hungarian rents rose by 13 percent, and those in Budapest by 14 percent,” said László Balogh, the leading expert of ingatlan.com. According to his analysis, the increase in prices in the capital came to a halt due to the ever-widening range.

The increase in real estate prices in Budapest came to a halt

“In July, in a month-on-month comparison, rents both nationally and in the capital increased by 1.9 percent, according to the KSH-ingatlan.com rent index, which is understandable, since demand picked up after the announcement of the point limits. Compared to July last year, national rents rose by 13 percent, and those in Budapest by 14 percent,” said László Balogh, the leading expert of ingatlan.com.

According to his analysis, the increase in prices in the capital came to a halt due to the ever-widening offer: average rents were only HUF 230,000 (EUR 599,34) at the end of August, compared to HUF 240,000 (EUR 625,40) a month earlier.

Which is the cheapest district?

The cheapest part of the city is District XXI, where the average rent was HUF 160,000 (EUR 416,93) at the end of August. The most expensive – for an average of HUF 320,000 (EUR 833,87) – apartments in District V are offered.

The aggregated average rent in the county seats was HUF 140,000 (EUR 364,82), which represents a minimal increase compared to HUF 136,000 (EUR 354,39) a month earlier. Debrecen, Veszprém and Győr are the most expensive, the average rent in these cities is HUF 160-180 thousand (EUR 416,93-469,05). Among the cheapest are Miskolc, Salgótarján and Békéscsaba, the latter county seats are characterized by an average rent of HUF 100,000 (EUR 260,58), the analysis reads.

Are the apartment prices affordable for students?

However, the above prices are largely unaffordable for students, according to the National Conference of Student Self-Governments. Every year more and more people apply for higher education, and university dormitories are oversubscribed.

So far, students at rural universities have been more satisfied, and there has been less over-subscription, writes telex.hu. This year, this may change, as the number of students jumped, especially at rural universities: the number of admissions increased by 43 percent.

No end in sight: horror of the Hungarian rental market continues

real estate Hungary

Every month now, rent peaks are being set. In eight years, rents have doubled, not only in Budapest but also nationally. In just one year, the price of rented property has risen by nearly 14 percent.

Rent prices continued to rise in July. Both nationally and in Budapest, the increase was 1.9 percent in one month, according to the joint rent index of the Hungarian Central Statistical Office (KSH) and ingatlan.com. The number of home insurance policies also jumped, by 26 percent year-on-year, Netrisk.hu reports.

According to the KSH, rents increased in all regions of the country except Pest. Within Budapest, the biggest increase was in the transitional districts of Pest, where rents rose by 3%. The rate of nominal rent growth also exceeded the monthly rate of inflation in July, with real rents rising by 1.6 percent nationally and 1.7 percent in the capital compared to the previous month.

After a slowdown at the end of last year, the first half of 2023 has seen a faster pace of rent growth in the rental market. July saw a 1.9% increase compared to the previous month, both nationally and in Budapest, napi.hu writes.

Compared to the same period last year, rental prices increased by 13 percent nationally and by 14 percent in the capital.

Nominal rents have been rising above the January 2020 peak for about a year and a half, exceeding it by 32% nationally and 29% in Budapest in July 2023.

However, taking into account the consumer price index, real wages were 7.6% and 9.7% below their pre-pandemic levels.

Read also:

Horrific prices in the Hungarian rental market: here is what to expect

budapest real estate

Lots of people struggle with not being able to rent a proper place in the country, especially in the capital. In Budapest, average monthly rents exceed HUF 200,000 (EUR 519.60). On top of this, there are utility bills and a deposit. The latter now corresponds to 2-3 months’ rent. Real estate experts point to the same problem: paying two months’ deposit plus one month’s rent can cost HUF half a million (EUR 1300) before even moving in.

Extremely high rental prices

As we reported, with the announcement of the university admission threshold scores on 26 July, the rental season started in Hungary. The season is to kick off with especially high monthly rents, according to real estate experts, napi.hu writes. Based on its own data, Duna House (DH), a real estate agency, reported to the Hungarian News Agency, MTI, that the average monthly rent in the capital city in July this year exceeded HUF 225,000 (EUR 584.55).

Smaller apartments, or flatlets, can be rented for HUF 150-170,000 (EUR 389.70-441.66). Two-bedroom apartments are for rent for HUF 250-350,000 (EUR 649.50-909.31) and three-bedroom apartments for HUF 350-500,000 (EUR 909.31-1300) per month on average in the most popular areas of Budapest.

2-3-month deposit

Generally, landlords ask for a two-month deposit when moving in. However, if the tenant wants to move in with a pet, a 3-month deposit is expected, napi.hu warns. Among rural university towns, prices in Debrecen are around HUF 200,000 (EUR 519.60). Average rents in Szeged and Sopron are HUF 150,000 (EUR 389.70), in Pécs HUF 130,000 (EUR 337.74), while in Miskolc, prices are around HUF 110,000 (EUR 228.78).

To avoid misunderstandings, a written tenancy agreement is recommended for both tenants and landlords. It is best to have it notarised. This way, it is an authentic instrument and both parties can more easily enforce the terms, napi.hu recommends.

Budapest rental market

According to data from ingatlan.com, the average monthly rent in Budapest was HUF 240,000 (EUR 623.62) at the end of July. The districts with the largest selection (3, 8, 11 and 13) had average rents of 220-250,000 (EUR 571.56-649.50). Among the most expensive districts were districts 1, 2 and 5. In these places, rents range from HUF 300,000 (EUR 779.41) to HUF 368,000 (EUR 956.07).

Rental season starts in Hungary: these are the cheapest places to rent

Budapest real estate

The university admission threshold scores were announced on Wednesday evening. With this, the high season on the rental market has begun. This will go a long way to boosting an already buoyant market. What do rental prices look like now in the country?

Rental season is starting

Demand for rental apartments has been on the rise since the spring, and this is now being boosted by the run-up to university, Forbes writes. Supply has started to increase significantly in recent weeks, with 300 new properties added to the more than 12,000 available in the last few days, according to the latest analysis by ingatlan.com.

László Balogh, chief economic expert at ingatlan.com, expects demand for low-priced rentals and rooms to become even stronger in the coming weeks. One reason is the general increase in the price of rentals. Another is that students entering the market now are typically looking for cheaper apartments to rent.

Where is the cheapest place to rent?

According to ingatlan.com, the average price of rentals in Budapest is HUF 240,000 (EUR 626.70). For apartments smaller than 40 square metres (flatlets), the average rent is much lower, at HUF 155,000 (EUR 404.74). Among the districts with the largest supply of flatlets, the average is HUF 177,000 (EUR 463.12) and HUF 180,000 (EUR 470.96) in districts 11 and 13, respectively. In districts 17, 20 and 21, apartments are also available for around HUF 100,000 (EUR 261.65).

The average price of a room in the capital is HUF 80,000 (EUR 209.30).

What is the situation in university towns?

Among the largest university towns, Győr has an average rent of HUF 185,000 (EUR 483.93), while flatlets are available for HUF 105,000 (EUR 274.70). The average for rooms is HUF 70,000 (EUR 183.10). Debrecen’s rental market starts the season with an average rent of HUF 170,000 (EUR 444.66). Flatlets are offered at HUF 120,000 (EUR 313.91) and rooms at HUF 60,000 (EUR 156.96).

In Szeged and Pécs, the average rent for apartments smaller than 40 square metres is HUF 100,000 (EUR 261.65) and HUF 97,000 (EUR 253.71), respectively. In these two towns, the price of rooms for rent is HUF 60,000 (EUR 156.95) and HUF 65,000 (EUR 170.06), respectively. The rent for flatlets in Miskolc is at HUF 70,000. The average price for rooms for rent is HUF 50,000.

Renting in Budapest has never been so expensive, the big rush is coming soon

Hungary-Budapest-Chain-Bridge

The average monthly rent in the capital exceeds HUF 200,000 (EUR530), on top of which there are utility bills and the deposit, which now corresponds to 2-3 months’ rent.

444 reported that the rent fees in the Hungarian capital are higher than ever. The university admission thresholds are drawn this Wednesday, therefore, a big fight for rents will start immediately. Here is what to expect on the rental market.

Renting in Budapest

According to the data provided by Duna House, the average rent in Budapest in July is over HUF 225 thousand (EUR 590). However, this price depends on the flat’s location and on the number of rooms. For instance, you can get your hands on a flatlet for HUF 150-170 thousand (EUR 390-450), a two-bedroom apartment for HUF 250-350 thousand (EUR 660-920), and a three-bedroom flat for HUF 350-500 thousand (EUR 920-1,320) in popular areas in Budapest. Owners usually ask for a deposit of two months’ rent. Having said that, if you also take pets, the owner will most likely ask for a deposit of three months’ rent. When choosing a rental, it is wise to also consider the energy parameters of the apartment. As you must pay the utility bills on top of the rental fee.

Duna House suggests tenants and landlords sign a written tenancy agreement to avoid any future misunderstandings. To ensure further safety, it is better to have it notarised, so that it is an authentic instrument and both parties can easily enforce it.

The most expensive districts

According to the data of ingatlan.com, the average rental fee in Budapest was HUF 240 thousand (EUR 630) in July. Districts III., VIII., XI. és XIII. had the widest selection of apartments to rent. The average rental fee in these districts was about HUF 220-250 thousand (EUR 580-660). The most expensive areas in Budapest are districts I., II. and V. with an average rental fee of HUF 300-368 thousand (EUR 790-970). When renting in Budapest, it is advised to consider the location of the flat, how far it is from the university or workplace, and what the average utility fees are.

Rent in larger university towns

It was also pointed out that rent in the larger university towns is rather expensive. In Győr, the average is HUF 185 thousand (EUR 490), in Veszprém HUF 172 thousand (EUR 450), and the same goes for Debrecen. However, there are cheaper university towns as well. The average rent in Pécs is HUF 140 thousand (EUR 370), and in Szeged HUF 135 thousand (EUR 355), while in Miskolc it is only HUF 100 thousand (EUR 265). Landlords ask for a deposit equivalent to two months’ rent and one month’s rent in advance. In larger university towns, it can mean a lump sum payment of more than HUF 500 thousand (EUR 1,320) to tenants. Therefore, you should be careful when looking for an apartment to rent.

Finding affordable apartment in Hungary to be almost impossible from September

book rent apartment

There has been a gradual increase in rental prices across Hungary. This is only expected to increase during the high season, the real estate agency Duna House said in a statement. Thus, finding affordable rentals will not be easy: especially for university students from September.

In the current rental market, in addition to exceptionally high demand, tight supply and rising rents are making it even more difficult than usual for students to find a place to rent, Duna House (DH) said in its statement.

Budapest students should prepare for the most expensive rents

Students in the capital should prepare for the highest costs. The average rent is expected to rise to over HUF 200,000 (EUR 519) in Budapest. However, even in popular rural university towns, in many cases, the only way to reduce costs is to move several students together. Those who do not want a flatmate but would like to rent an independent apartment should be prepared for a minimum rent of HUF 130-150,000 (EUR 337.77-389.73) plus utility bills, based on the current offer in the capital, DH said.

The real estate agency points out that although the rent of the apartment you choose is the most important, it is only one of many factors. As napi.hu writes, Károly Benedikt, Head of PR and Analysis at Duna House, pointed out in the press release that the energy parameters of the property and its monthly energy consumption are of utmost importance not only when buying a flat, but also when looking for a rental property.

Pay attention: is the apartment debt-free?

It was noted in the Communication that it is also worth checking that the dwelling is debt-free, as a previously accumulated utility arrears can lead to the disconnection of the service.

“In addition to the rent and utility bills, it is essential that the prospective tenant knows the composition and level of the common costs. If the common cost includes an amount for future improvements, the tenant can ask the landlord to take over these items, as the tenant may not necessarily benefit from this,” advised the Duna House expert.