• Hungarian forint
  • Budapest
  • Police news
  • HelloMagyar
dnh_logo_feher2dnh_logo_feher2dnh_logo_feher2dnh_logo_feher2
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Breaking News
Support us
Kitti Tordai Kitti Tordai · 12/05/2022
· Business

What’s next?! 35% increase in the Budapest rental market

Budapest Hungary money property real estate

In Budapest, rents have risen by 35% in a year, while in some rural cities they have increased by almost 30%. This remarkable increase is higher than the 21-year record high inflation in Hungary.

Budapest rents hit a record high in May. Compared to the beginning of the year, prices in Budapest rose by 2.9%, and nationally by 2.3%, representing annual increases of 18.2% and 19% respectively – reported the Hungarian news portal Femina.

However, the rental price increase is even more dramatic compared to the same period last year. Within a year, the average rent increased by 35% in Budapest, while in most of the capital cities the increase was also in double digits, 10-30% on average.

In the Hungarian capital, the average monthly rent is currently between EUR 434-460 (~HUF 165,000-175,000).

In Veszprém, Győr, Székesfehérvár and Tatabánya, the average monthly rent is EUR 342-395 (~HUF 130-150,000), while in Szeged, Pécs and Debrecen it is EUR 303-316 (~HUF 115,000-120,000).

Read also: These are the most popular Hungarian cities on the real estate market

Rental prices in the Hungarian capital vary from district to district. The most expensive area is the 5th district, where tenants have to pay on average EUR 658 (~HUF 250,000), followed by the 1st, 2nd and 13th districts with an average price of EUR 526 (~HUF 200,000). The cheapest is the 21st district, where housing costs on average EUR 329 (~HUF 125,000) per month.

The significant increase in rental prices exceeds the 21-year record high inflation in Hungary.

One of the reasons for the remarkable price increase in the rental market is the large drop in supply. In March and April, the number of people looking for rentals was very high in Hungary. Nationally, the demand in the market increased by 14% compared to March 2019. This is partly due to the fact that many Ukrainian refugees wanted to settle in Hungary, as well as the rise in interest rates on housing loans. These tenants acted on time getting their hands on the cheapest offers. Last year at this time, there were almost 20,000 apartments for rent, while this year there are approximately 10,000 to choose from in May – reported by the Hungarian news portal hvg.

Experts cannot say how long the price rises will last, but it is certain that the number of people looking for housing will increase again after the higher education entrance exams, which could lead to further rises.

It is also important to highlight that the rise in interest rates also has an impact on the rental market. Fewer people will buy a property with a mortgage, which could slow the rate of house price appreciation but it could also discourage investment buyers. In spring 2015, the yield on residential property in Budapest was 8.77%, while in other capital cities it was over 9%. The gross yield on a rental property is currently 4.75% in Budapest and 5.22% on average in other capital cities.

budapest
Read alsoHome rental rates in Hungary rose almost 20 pc in March

Source: femina.hu, hvg.hu

Budapest Hungary money property real estate
Share

Related posts

mnb-central-bank-hungary
28/03/2023

Here is the Hungarian central bank’s decision: how will the stock market react?


Read more
Debrecen
28/03/2023

Hungary’s new home construction booming in these regions


Read more
food store spar inflation price hungary (2)
28/03/2023

Significant price reductions by Lidl and Spar in Hungary! Which one is cheaper?


Read more
National Bank of Hungary
27/03/2023

Hungarian Parliament approves new central bank decision-makers


Read more

2 Comments

  1. Greed & Exploitation : says:
    12/05/2022 at 13:30

    Governments – are the SERVANTS of People.
    Articles of similar tone have appeared often over the past 12 months in DNH.
    I have used this forum on numerous occassions to “Vent one’s Spleen” at the Greed & Exploitation – that is driving this upsurge ongoing – in Budapest, Hungary.

    Governments – intervene, and serve – do the RIGHT for People, when there continues FACTUAL evidance – that Greed & Exploitation – is out of control in Budapest, Hungary – and causing mounting Society-Community – Unrest & Displeasure.

  2. Midas says:
    12/05/2022 at 20:28

    In take all this with a pinch of salt. I bought a flat in a well known building in a trendy part of central Budapest in 2016. The rent that I am achieving for it is only 10k HUF more than back then (it is a really nice place). However, my parking space in the underground garage, a space that I rent out separately, is a different matter. That is where rental incomes have shot up.

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US

Must read

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.


About us

Contact us

Copyright rules

© 2023 DailyNewsHungary. All rights reserved! | Server and development by Svigelj Levente E.V
Daily News Hungary
Manage Cookie Consent
Like all websites, Daily News Hungary uses cookies to provide you with a more pleasant experience when you visit our Website. Because we are committed to keeping your information secure, this Notice explains exactly what cookies we use, for what purposes, under what conditions and for how long.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}