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.