Tenants face prohibitively expensive rental prices in Budapest
In September, the average rent price in Budapest reached HUF 201 thousand/month (EUR 480). That means a 4.5 percent rise compared to August and probably a historic peak. Rentingo.com, a social media site used for property rentals, shared its experiences regarding the latest trends in the Hungarian rental market in a statement sent to the Hungarian News Agency. Below, you may read some additional details on the issue.
According to Rentingo’s statement, the difference between the demand and supply prices in Budapest’s rental market grew to 26 percent in September. Furthermore, rental prices grew by 4.5 percent in Budapest because the landlords calculate the rent considering the Hungarian double-digit inflation and the increasing interest rates of the state bonds.
Meanwhile, tenants face increasing utility costs and food prices. Therefore, it is becoming more difficult for them to pay the growing rent. That is why the demand price is much lower than the supply price. The average tenant in Budapest would like to rent a flat for HUF
160 thousand (EUR 381) per month. That is “only” 1.7 percent more than in August.
Read alsoThe worst in the EU: Hungary’s food prices outstrip those of the region
Rentingo.com noted that because of the growing difference between supply and demand prices, the struggle for tenants started again like during the coronavirus pandemic. As a result, more and more landlords would like to get in touch with potential subtenants.
Rentingo.com is a platform and social media site aiming to connect tenants, landlords and people searching for potential roommates. Their goal is to make the entire rental process transparent, from wording the ad to the signed contract.
Source: MTI, Rentingo.com
Tenancy of Rental Property’s – especially those taking out new tenant leases, like the Real Estate and Property Markets – are in a state of absolute Panic and Confusion.
The declining state of the Hungarian Economic & Financial position, the continual decline of the Forint, the continual increases on Interest Rates, the continual rise of Inflation, the continuation of cost of living rises, the un-certainty of Gas & Fuel supply this winter, the on-going Russian War on the Ukraine, the “grave” un-certainty of funding from the European Union to Hungary – ALL – depressive factors, why there EXISTS and growing – Panic & Confusion – grave un-certainties, in the Rental Property Market by Landlords & Tenants – and in the OVERALL – Real Estate & Property Market Profession.
Sadly, the over-all picture is NOT going to get re-paired nor easier – in the immediate nor distanced FUTURE.