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Budapest flat rental price growth stagnates in January

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According to data compiled by property listing site ingatlan.com, flats for rent in Budapest under HUF 100,000 per month are significantly fewer than 5-6 years ago. Currently more than half of flats offered for rent cost between HUF 100,000 and HUF 150,000, business daily Világgazdaság reports.

László Balogh, senior analyst at ingatlan.com, told Világgazdaság that prices are now stagnating, due to government measures to whiten the rental market. Those who let their flats according to legal requirements now save more money than before, partly because lawmakers have exempted rental income from the 14% healthcare contribution.

Tenants now pay HUF 140,000 a month, on average, to rent a flat in Budapest, up HUF 10,000 from a year earlier. The rate of increase is well under those in previous years, the report noted, as landlords are now asking "realistic" rents from their tenants, according to Balogh.

The greater part of listings on ingatlan.com in January, 52%, were put up for rents of HUF 100,000-HUF 149,000 per month. A further 20% of flats were advertised with rents of HUF 150,000-HUF 199,000 in Budapest.

More than 20,000 new flats are expected to be inaugurated in the capital this year as investors take advantage of temporary reduced VAT on home construction. Between 20% and 30% of these flats will be rented out, raising the share of flats advertised with rents over HUF 150,000, Balogh said.

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