This is now the most profitable investment option in Hungary

Owning garage has become a luxury in downtown Budapest and some other Hungarian rural municipalities. It costs almost as much as a studio apartment 6-7 years ago, and there is a shortage. Thus, owning a garage may generate higher profit than an apartment. And that shortage concerns storages in condominiums. These two investment targets are now the best choices in Hungary.

László Balogh, the leading analyst of ingatlan.com, said garage prices increased 20-25 percent every year in the last seven years. However, the price rise concerning apartments stopped one year ago, index.hu wrote. The garage price increase did not. Since the number of cars increase, finding a safe parking place is a growing problem for car owners. Investors do not have enough money to create enough parking places under or near the new buildings. As a result, they pay extra fees to the municipal council, but that does not solve the problem in the long run.

People would like to rent a garage because of the growing parking fees and the shortage of parking lots, Ferenc Farkas, the CEO of Ingatlancsoport Ltd, said. As a result, garage prices skyrocketed in the last few months. According to ingatlan.com’s László Balogh, garage costs increased by 20 percent in the last 12 months. In the downtown, the increase is 50 percent compared to 2020.

In some districts, the average price exceeds HUF 2 million/sqm (EUR 5,378/sqm). In the Buda Castle district, even HUF 2.4 million/sqm (EUR 6,454/sqm) is not exceptional. That means you must pay almost EUR 54,000 for a garage there. In the 5th district, the heart of Pest, there is no garage for sale, Mr Balogh added. That price goes below HUF 170,000-200,000/sqm (EUR 450-500/sqm) in the outer districts.