The Hungarian rental market is facing a huge change: could energy-efficient apartments be the future?
Rising overheads are transforming the real estate market. As electricity and gas prices rise, the rental market faces a huge challenge. Could energy-efficient apartments be the future?
Demand for energy-efficient apartments
According to ATV, demand for modern, energy-efficient apartments with lower utility bills has increased. “It’s a serious consideration to know what the utility costs of the given property are,” said László Balogh, analyst at ingtalan.com. Currently, more than 11,000 apartments are available for rent. Rents have increased by 25% compared to 2021 prices. However, university students who share a larger apartment also consume more. “In the case of large apartments, it can count if it is a dilapidated apartment equipped with an old heating system. Then, during the winter months, for an apartment shared by three or four students, the consumption can easily be above average, and in extreme cases, the charges can even exceed the rent. – says Benedikt Károly, Head of Analytics at Duna House.
Currency deterioration also influences the rental market
As napi.hu reports, the rate of deterioration of the currency likely continued to increase in July. This means that the end of the rise in interest rates is not yet in sight: the interest rate could rise to 13%. Further increases in interest rates can accelerate the decline in demand, which can lead to stagnation or possibly price reductions for larger, non-energy-efficient properties. Now buyers are looking for properties between 40 and 60 square meters.
The deposit can play a bigger role
The deposit may play a bigger role in the future of the rental market. -writes 168.hu. If necessary, the owner can use it to cover utility bills. “Higher utility costs mean higher risk for landlords: some are asking for three instead of the usual two-month deposit. However, it is not so efficient, because in this way a person moving in would have to pay more than 1 million HUF (2550.44 EUR) to the landlord,” explained László Balogh.
Source: MTB, napi.hu, 168.hu