We wrote a lot of articles before about the skyrocketing rental prices in Budapest and about the fact that many Hungarians cannot find a place to live because of the low wages in the capital. Now, it seems that the coronavirus epidemic and the economic crisis following it are going to reverse the trend, and the price of renting is decreasing for the first time in a long period.
According to Index, this year, the owners have to fight for the tenants, which is considered to be a significant turning point in the Hungarian real estate market. This is the result of the economic crisis caused by the coronavirus epidemic. Rental fees reached their peak in March, and now, it seems that the sector is marching towards a crisis even in Budapest.
Therefore, landlords are offering their flats for less money, and requirements are also easier to meet. For example, one-third of them would be satisfied with a deposit equal to one month’s rent instead of the previous two months.
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In January, the average rent owners asked for a flat in Budapest was 169 thousand HUF (EUR 462), which decreased by almost 30 EUR by March. Experts say that the demand now is much less than the supply, so it takes longer to find tenants. Therefore, the increase in rental fees stopped in February, and from March on, it has started to decrease.
Furthermore, the ceasing of the short-term real estate lease for touristic purposes (booking.com, Airbnb) means that in the future, new, well-furnished and downtown flats are going to flood the market, resulting in people being able to rent real estate in better quality for less money. Moreover, some owners offer their flat below the advertised price on websites and social media platforms where prospective tenants have a profile, so they seem to be more reliable.