Can he go even further? The Hungarian rental market will experience a price explosion!

Partly because of the Russo-Ukrainian war and the settlement of refugees in Hungary, partly because of the probable disappearance of Covid, and partly because of the recovery of the economy, rental prices have risen. fly away.

Growing demand, rising price

What is certain is that the situation of the Russian-Ukrainian war stimulated the demand for apartments in Hungary, because suddenly tens of thousands of people started looking for apartments.

After a long decline due to the Covid epidemic and a long period of stagnation, the rental market is now recovering. Prices have mostly tracked only inflation over the past 2 years, but are now clearly on the rise, writes hvg.hu.

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Foreigners have returned, a recovery is expected in the Airbnb market, which could lead to a drop in demand in the rental market

Experts say real estate players tried to play down the economic effects of the pandemic after the sharp fall in 2020. Then, in the fourth quarter of 2021, there was a slight recovery in the market, but that too only meant that a 2-5 percent. cent price increase for better apartments. However, since January and February, foreigners have been slowly returning to the rental market, and there are already signs that Airbnbs could get back on its feet, with more and more bookings in these accommodations.

The Russian-Ukrainian war also has an effect

As many Ukrainian citizens come to Hungary, a new group has appeared on the rental market. “Most of them appear on the national real estate market as creditworthy temporary tenants. They usually plan for two to three months and their main goal is to return home when the war is over. If we look at the situation from a market perspective, this sudden market demand is triggered by the sudden surge in demand for rental properties.

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Rental rates

Currently, studios can be rented from around 300-350 euros per month, and the price of one-bedroom properties starts around 400-450 euros, writes pénzcentrum.hu.

Last year’s inflation of 7.5% has also pushed up rents, not only in Budapest but also in other major cities: downtown Debrecen, for example, is at a similar price level. at current prices in the capital.

While sale prices have already exceeded them, rental prices will only now return to pre-pandemic price levels of 2019. It was much more expensive to get an apartment then than in 2020, the year last or now. By the second half of this year, we expect to exceed this level by 10-15%.

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Source: hvg.hu, pénzcentrum.hu

Laura T. Thrasher