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Latest Figures Show Budapest Rent Prices Skyrocketing

Hungary Today 2024.04.16.

According to the Central Statistical Office (KSH) and the ingatlan.com rent index, rent prices were 11.7 percent higher in the country and 12.4 percent higher in the capital in March compared to a year earlier. In Budapest, the average rent was already HUF 270,000 (EUR 684) in April. Only the solvency of demand is putting a slight brake on the pace of price increases.

Monthly rents rose by 0.8 percent on average in Hungary and by 1.8 percent in Budapest compared to February, writes Világgazdaság.

The picture was bleak in the rental market in March, with the monthly increase accelerating from 1.1 percent to 1.8 percent in Budapest, while the national rate slowed from 1 percent in February to 0.8 percent, said László Balogh, chief economist at ingatlan.com, commenting on the latest data.

Photo via Pexels

The monthly slowdown in national rent growth is mainly due to the limited ability to pay. The increase in rents does not reflect inflation, but rather the rise in wages, the expert noted. This is partly due to the fact that

average rental prices in the capital and Debrecen have broken a psychological barrier.

In Budapest, the average rent for an apartment is now HUF 270,000 (EUR 684). Flats smaller than 40 square meters are much cheaper, with rents averaging HUF 185,000 (EUR 469).

If wage growth does not slow down, the average rent level could reach HUF 300,000 (EUR 760) in Budapest next year, the expert emphasized. Balogh believes that the rising rent prices could be partly compensated by the Youth Guarantee Plus Program and the “Housing Benefit 2024” rent subsidy programs launched by the government in the spring. These are socially-based rent subsidies to help young people and jobseekers into the labor market.

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Based on the April supply, significant differences remain. District 5 (the heart of the capital) is the most expensive, with rents costing HUF 380,000 (EUR 963). Among the districts with the highest supply,

districts 11 and 13 have average rents in line with the capital’s average, at HUF 270,000 (EUR 684).

The cheapest are in districts 18 and 21, where rents are below HUF 200,000 (EUR 507).

Looking at the markets in the county seats, Debrecen (eastern Hungary) has the highest rent for tenants. There, the average rent has broken the HUF 200,000 (EUR 507) psychological barrier: in mid-April the average was HUF 220,000 (EUR 558). This is followed by

  • Győr (northwestern Hungary)
  • Székesfehérvár (central Hungary)
  • Veszprém (western Hungary) with HUF 176-180,000 (EUR 446-456).

At the other end of the scale are Miskolc, Salgótarján (both in northern Hungary) and Békéscsaba (southeastern Hungary), with rents of HUF 90-100,000 (EUR 228-253).

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Via Világgazdaság; Featured image via Pixabay

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