Rent Increases Stall in the Hungarian Housing Market

The rise in rents that has occurred for more than a year and a half came to a halt in September. Nationally, rents increased by only 0.1 percent, while in Budapest, the offer prices decreased by the same amount compared to August. This is based on the rent index published by the Hungarian Central Statistical Office and ingatlan.com.

On a year-on-year basis, however, September rents were 22 percent higher nationwide and 24 percent higher in Budapest. The index also shows that nominal prices have exceeded the pre-pandemic peak of January 2020, both nationally and in Budapest since March. However, they are still below it in real terms.

Meanwhile, the number of property ads also fell significantly, by 21 percent compared to the first nine months of 2020, and 23 percent compared to the same period in 2021.

László Balogh, chief economist at ingatlan.com, commented on the news saying that earlier data had already suggested a slowdown in monthly increases, as the rent index had been rising less and less since July.

This can be explained by a number of factors, such as rising living costs and changes in utility rules.

The slowdown in the property market has already been observed for apartments and houses for sale, as their prices have not increased since the beginning of September,

the expert added.

According to the real estate advertising portal, the average rent in the capital is 200,000 forints (EUR 490). The V district is still the most expensive, with an average rent of almost 300,000 forints (EUR 730). The lowest average rent of 140,000 forints (EUR 340) was recorded in the XXIII district. In the county capitals, the average rent is HUF 120,000 (EUR 290).

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