Highest ever price level in the Hungarian rental market!

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

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

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

Despite the increase in prices, average rent in the capital is still below the pre-pandemic level.

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

The Russian-Ukrainian war is also affecting the Hungarian real estate market. In Szabolcs-Szatmár-Bereg County, near the Ukrainian border, the number of inquiries for residential property for rent increased by more than 50% compared to a month earlier. In Békés County, the increase was 30%, and in Budapest, it was 19%.

Due to changes in supply and demand, rental prices started to rise after the outbreak of the war. By mid-March, rent in Budapest and Nyíregyháza had risen by EUR 26,65 (~10,000 HUF) to EUR 426 (~160,000 HUF) and EUR 293 (~110,000 HUF) respectively on the supply market. This is close to the level in the university cities of Pécs and Szeged.

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

As far as the real estate market is concerned, sales are booming in the Transdanubian region. Despite the skyrocketing prices, the Hévíz-Zalakaros-Kehidakustány region performed outstandingly in terms of the number of transactions per population. Based on last year’s estimates, Győr had the highest number of sales, with just over 2,000, followed by Szombathely (1,500), Sopron (1,000), Nagykanizsa, and Zalaegerszeg (750). In addition, 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 to buy a property. For brick apartments, Győr is the most expensive, at almost EUR 1,332 (~HUF 500,000), while Sopron is the favourite for panels and second-hand houses at EUR 1,247 (~HUF 468,000) and EUR 991 (~HUF 372,000) per m2, reported Pénzcentrum.

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

Source: roadster.hu, penzcentrum.hu