Hungarian rental market is facing a huge change: could energy-saving apartments be the future?
The rise in overhead costs is transforming the real estate market. As the prices of electricity and gas are rising, the rental market is facing a huge challenge. Could energy-saving apartments be the future?
Demand for energy-saving apartments
According to ATV, the demand for modernly built, energy-saving apartments with lower utility bills has increased. “It is a serious consideration what the utility costs of the given property are”, said László Balogh, an analyst at ingtalan.com. Currently, more than 11,000 apartments are offered for rent. Rents have increased by 25 percent 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 “In the case of large apartments, it can count if it is an outdated apartment equipped with an old heating system. Then, in the winter months, for an apartment shared by three or four students, the consumption can easily be above the average, and in extreme cases, the utility costs can even exceed the rent.” – says Benedikt Károly, head of analysis at Duna House.
Currency deterioration also influences the rental market
As napi.hu reports, the rate of currency deterioration presumably continued to increase in July. This means that the end of the interest rate increase is not yet in sight: the interest level may rise to 13 percent. Further interest rate hikes can accelerate the decline in demand, which can lead to stagnation or possibly price reductions for larger and non-energy-efficient properties. Now, buyers are looking for properties between 40-60 square metres.
Read alsoHungarian rental market is facing a huge change: could energy-saving apartments be the future?
The deposit may play a more important role
The deposit can play a more prominent 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 a higher risk for the owners: some ask for three instead of the usual two-month deposit. However, this is not so efficient, because in this way a person moving in would have to pay more than HUF 1 million (EUR 2550.44) to the owner”- explained László Balogh.
Read alsoHungarian rental market is facing a huge change: could energy-saving apartments be the future?
Source: ATV, napi.hu, 168.hu