The highest price level ever reached on the Hungarian rental market!

According to the long-term index, the rental market hit another record high last month. The rent was 49.2% higher in February compared to the average for 2015. Let’s see what the current price level is in Budapest and the countryside.

Compared to last year, rental prices increased by 16.1% nationwide and by 16.5% in Budapest. This year, there is continuous growth: rental prices in Hungary have increased by 2% compared to the beginning of the year and by 1.5% in the capital.

According to Roadster, this year, the highest price increase ever recorded can be observed on the Hungarian rental market.

Rent was 49.2% higher in February compared to the 2015 average.

Within the country, there are significant differences. While rent increased by almost 41% in Budapest, an increase of more than 70% could be observed in Pest County, Central Transdanubia and Northern Hungary. The average rent in county towns was EUR 306 (~115,000 HUF) in mid-March, compared to EUR 266 (~100,000 HUF) a year earlier. The most expensive cities are Székesfehérvár, Veszprém, Győr and Debrecen, where the average rent was 333-372 EUR (~125,000-140,000 HUF). In many county towns, such as Szolnok, Miskolc, Szekszárd and Salgótarján, it is still possible to rent a property for less than 267 EUR (~100,000 HUF) per month.

Despite rising prices, the average rent in the capital is still below pre-pandemic levels.

However, according to an expert, this may change in the near future.

The Russian-Ukrainian war also affects the Hungarian real estate market. In the county of Szabolcs-Szatmár-Bereg, near the Ukrainian border, the number of requests for rental accommodation has increased by more than 50% compared to the previous month. In the county of Békés the increase was 30% and in Budapest 19%.

Also read: Budapest municipality arranges accommodation for 2,000 Ukrainian refugees

Due to variations in supply and demand, rental prices began to rise after the outbreak of the war. By mid-March, rents in Budapest and Nyíregyháza had increased from 26.65 EUR (~10,000 HUF) to 426 EUR (~160,000 HUF) and 293 EUR (~110,000 HUF) respectively on the rental market. offer. It is close to the level of the university towns of Pécs and Szeged.

As the demand increases, the supply shows a continuous decrease. Since the start of the war, there have been 1,500 fewer rental apartments on the market. Currently, 12,000 apartments are available nationwide. The most expensive district of the Hungarian capital is the 5th district where apartments for rent are offered for an average of 760 EUR (~285,000 HUF), followed by the 1st (EUR 613 ~230,000 HUF/month) and the 2nd districts (EUR 560~ 210,000 HUF/month).

With regard to the real estate market, sales are booming in the Transdanubian region. Despite the surge in prices, the Hévíz-Zalakaros-Kehidakustány region recorded exceptional performance in terms of the number of transactions per capita. According to last year’s estimates, Győr recorded the highest number of sales, with just over 2,000, followed by Szombathely (1,500), Sopron (1,000), Nagykanizsa and Zalaegerszeg (750). Additionally, Mosonmagyaróvár stood out with more than 500 transactions. What is even more surprising is that among the top 3 settlements, two of them – Győr and Sopron – have the highest prices for buying property. For brick apartments, Győr is the most expensive, at almost EUR 1,332 (~500,000 HUF), while Sopron is the favorite for panels and second-hand houses at EUR 1,247 (~468,000 HUF) and 991 EUR (~372,000 HUF) per m2, reported Penzcentrum.

There are few foreigners buying property in the area, most of them are Germans. They are mainly attracted by nearby spas and relatively low property prices.

Source: roadster.hu, penzcentrum.hu

Laura T. Thrasher