The situation of apartments in Hungary

In Budapest and in several university towns (Pecs, Debrecen and Szeged) the rental prices of flats grew by 4-33%, however, it fell in Gyor. Students attending higher education institutions are not in an easy situation. Not only the prices of residential properties, but the rental fees of apartments also started to increase, primarily in the capital, origo.hu said.

The average rent of 40-50 sq m apartments in Budapest is HUF 140 thousand. According to ingatlan.com, short-term rent based on tourism and canceled residential construction also played a role in the price increase.

Laszlo Balogh, expert of ingatlan.com pointed out that the effect of apartment hunting is perceptible before the start of school each year: the demand for apartments to rent increased by 20% this year.

80% is not unique

According to the data of ingatlan.com, prices really went up in Budapest this year, the average rental fee is HUF 140 thousand in the 40-59 sq m category, compared with the HUF 126 thousand in September last year which means a 11%-increase.

In the case of larger apartments, the price increase was more moderate in the capital: in the 60-79 sq m category, the average supply price was HUF 187 thousand which represents a 4%-increase.

According to ingatlan.com’s expert, there are neighborhoods, apartment sizer where up to a 50-80%-price increase or higher has happened – Laszlo Balogh said.

The situation is ambiguous in rural towns

Rental charges are above HUF 100 thousand in Gyor: 40-59 sq m-large homes are offered for an average of HUF 106 thousand, the 60-79 sq m ones are offered for HUF 130 thousand. It1s interesting that these prices lower than in September last year, in which case HUF 120 thousand was requested for smaller houses and HUF 140 thousand for the larger ones.

In Debrecen, the average monthly rent of 40-59 sq m-large apartments increased from last year’s HUF 82 thousand to HUF 90 thousand, according to the analysis of ingatlan.com. Contrasted with this, there was no change in the case of larger apartments: the offer price remained HUF 110 thousand.

Outstanding results in Pecs as well

Rental price of smaller, 40-59 sq m-large apartments increased to HUF 80 thousand from HUF 60 thousand in September last year which is a 33% increase. In the case of larger, 60-79 sq m flats, average rents grew from HUF 80 thousand to HUF 90 thousand, which represents a 13% excess.

Prices also increased in Szeged: in the smaller apartment category, average rental prices increased by 17% from HUF 60 thousand to HUF 70 thousand, and in the case of larger flats, the average rent increased by 13% from HUF 75 thousand to 85 thousand.

Private homes became accommodations

Laszlo Balogh said about market trends that in Budapest and the larger rural towns, apartment prices started to rise. In the capital, the main driving force is, in one hand, rent based on tourism: more and more people give their flats for rent for foreigners. The hotel industry therefore sends distress signals. It expects decisive action from the legislators, since they lose 5-10% of their turnover because of property owners offering occasional accommodation in private homes – Akos Niklai, Chairman of the Hungarian Hotels and Restaurants Association said in an interview.

According to Laszlo Balogh, the rise of the rental prices is also fueled by the lack of housing constructions. According to official data, 8.3 thousand flats were built across the country last year, while 35.5-43 thousand new homes were built per year.

based on the article of origo.hu
translated by BA